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Program Overview

The County sponsors a 457(b) deferred compensation plan and a supplemental retirement (401(a) defined contribution) plan (“Program”). This section provides an overview of the key features of the 457(b) Plan and the 401(a)Supplemental Retirement Plan.

457(b) Plan Highlights

The information highlighted below is a summary of the 457(b) Plan. In the event of a conflict between the information contained within this Web site and the 457(b) Plan document, the Plan document controls.

The Plan is established under Internal Revenue Code Section 457(b). Under the Plan, you postpone receiving (defer) a portion of your salary. It works like this:

You decide, within certain legal limits, how much of your income you want to defer.

The County reduces your paycheck before income tax is withheld by that amount and forwards it to ING on a regular basis.

Contributions are invested in the investment options you have selected.

The contributions and any earnings that accumulate are not taxed until they are distributed to you. This is usually at retirement when you may be in a lower tax bracket.

Amounts are held for the exclusive benefit of Plan participants and beneficiaries.

457(b) Eligibility

All County employees who have attained age 18 and who fall within the following classifications are eligible:

Regular full-time employees scheduled for 80 hours or greater per pay period;

Part-time benefits eligible employees who are in position of .50 full-time equivalent or greater; and

Elected officials and appointees of the County.

Independent contractors and leased employees are not eligible.

457(b) Contributions

Contributions under the Program are made by participants through a reduction in salary, referred to as a “deferral.” You must elect to defer a minimum of $10 per pay period.

The maximum annual contribution amount is as follows:

Year

Annual Maximum

2008 $15,500

2009 $16,500

A higher limitation may be applicable during the three years prior to attaining Normal Retirement Age (NRA) under the 457(b) special catch-up provision or the older workers’ Age 50+ catch-up provision. For additional information on the older-worker’s Age 50+ catch-up, please Click Here.

Note that you may not use the age 50+ provision and the special 457(b) catch-up provision during the same calendar year.

457(b) Timing of Distributions

Earliest Date - Distributions are allowed only upon severance from employment, death, or the occurrence of an approved unforeseeable emergency, which are considered to be triggering events. The 457(b) Plan also includes a provision allowing the in-service distribution of accounts that do not exceed $5,000 if: 1) you have not made any contributions to the Plan during the prior two years; and 2) you have not received this type of in-service distribution in the past.

Latest Date - The IRS requires that distributions under a 457(b) plan begin no later than the April 1^st of the calendar year following the calendar year in which you attain age 70½ or separate from service, whichever occurs later. If you fail to receive the minimum required distribution for any tax year, a 50% excise tax is imposed on the required amount that was not timely distributed. These rules are referred to as IRS required minimum distribution requirements (RMD).

The Plan provides for a default payment option in the event you do not select a payment option at the time RMD payments are to begin. The default will provide for periodic payments in an amount that meets the annual IRS RMD requirements.

After you have severed employment and would like to select a benefit payment option, please call ING’s national customer contact center at (800) 584-6001 to request the Termination/Distribution Request Authorization form that you will need to complete.

457(b) Distribution of Small Account Balances After Severance from Employment

The Plan provides for an automatic distribution of your account if 1) the value of your 457(b) account is less than $5,000, 2) two years have passed since you severed employment and 3) you have not elected a payment option. Distribution will be made as follows:

If the value of your account is $1,000 or less – payment will be made in a lump sum distribution.

If the value of your account is greater than $1,000 but not greater than $5,000 – your account value will be automatically rolled over into an individual retirement annuity. (Please note that since you will be transferring from an employer sponsored arrangement to an individual annuity, different investments and expenses will apply under the individual retirement annuity.)

457(b) Payment Options

When you are entitled to a distribution of benefits under the Plan, you can choose from any (or a combination) of the payment options described below:

Periodic payments from your account over a specified period or for a specified amount, or periodic payments that meet the annual RMD requirement.

Lump sum, or partial lump sum distribution
- Take all or a portion of your account balance in cash.

Annuity Options
- Choose from a variety of annuity options including a joint and survivor annuity, life annuity and life annuity with period certain.

Rollover into another eligible plan
- Your distribution can be rolled over into an 401(a), 401(k), 403(b) or another government 457(b) plan or a traditional IRA.
- All distributions are eligible for rollover except for: 1) amounts distributed for an unforeseeable emergency withdrawal; 2) IRS required minimum distributions payable on or after you attain age 70½; and 3) periodic payments made over your life or a specified period of 10 years or more.

Transfer your benefits to another governmental employer sponsored 457(b) plan

Postpone any decision on benefit payments until a later date, subject to IRS RMD regulations.

457(b) Divorce

In the event of your divorce, the court may issue a domestic relations order that addresses the split of your account and the payment of a portion of your benefits to an alternate payee. ING will review your domestic relations order to determine whether it satisfies the Plan and IRS requirements for a Qualified Domestic Relations Order. If it does, and the alternate payee is your former spouse, he or she is entitled to elect immediate distribution of the amounts awarded under the QDRO. A spousal alternate payee is also eligible to rollover amounts awarded to another eligible retirement plan in which he or she participates

To obtain additional information, including procedures and a model QDRO document, please contact ING’s national customer contact center at (800) 584-6001.
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457(b) Beneficiary Designation and Death Benefits

You are permitted to designate a person or persons to receive payment of benefits in the event of your death. You designate an initial beneficiary on the Enrollment Form. To make changes to your previous designation, you will need to complete a Beneficiary Designation Form, available by clicking here. The completed form must be returned to ING.

Upon your death, benefits would be payable to the beneficiary(ies) that you designated under the Plan. If you have not designated a beneficiary or the beneficiary(ies) you designated are no longer living, payment of death benefits will be made to your estate.

Your beneficiary will be entitled to select from a variety of payment options, which are generally the same options that would have been available to you. Your beneficiary will need to call ING’s national customer contact center at (800) 584-6001 to request the Death Benefit Withdrawal Request package that will need to be completed.
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457(b) Taxation

All of the payments you receive from the Plan are subject to federal and state income taxes.

Federal income tax withholding will apply to your payments, as described below, based on whether you are eligible to rollover the distribution.

If you receive a distribution that is eligible to be rolled over, a mandatory 20% will be withheld for federal tax purposes at the time of payment.

If you receive a distribution that is not eligible to be rolled over, 10% federal tax will be withheld at the time of payment. However, you may elect to have no withholding withheld.

Amounts distributed from a 457(b) plan are not subject to the 10% federal penalty tax if distributed prior to attaining age 59½. However, if you have previously rolled over amounts from a plan (including a traditional IRA) other than a government 457(b) plan, such rollover amounts will be subject to this 10% federal penalty tax if distributed prior to attaining age 59½, unless an IRS exception applies.

ING does not offer legal or tax advice. Please seek the advice of your own legal or tax advisor prior to making a tax-related investment decision.

457(b) Unforeseeable Emergency Withdrawals

IRS guidelines and the Plan document provide that an unforeseeable emergency means a severe financial hardship to the participant resulting from:

An illness or accident involving you, your beneficiary, the spouse of you or your beneficiary or a dependent (as defined by the IRS) of you or your beneficiary;

The loss of you or your beneficiary’s property due to casualty (including the need to rebuild a home following damage to a home not otherwise covered by homeowner’s insurance, such as a result of a natural disaster); or

Other similar extraordinary and unforeseeable circumstances arising as a result of events beyond you or your beneficiary’s control.

Withdrawals are permitted only to the extent the hardship cannot be relieved: (1) through reimbursement or compensation by insurance or otherwise; (2) by liquidating your assets (to the extent this would not itself cause severe financial hardship); or 3) by stopping deferrals under the Plan.

Situations that may constitute unforeseeable circumstances include:

The imminent foreclosure of or eviction from the participant’s or beneficiary’s primary residence.

The need to pay for medical expenses, including non-refundable deductibles, as well as the cost of prescription drug medication.

The need to pay for the funeral expenses of a spouse or dependent (as defined by the IRS).

Only the amount reasonably necessary to meet the emergency need is available for withdrawal.

When you believe that you have incurred an unforeseeable emergency and wish to request a withdrawal from your 457(b) Plan account, call ING’s national customer contact center at (800) 584-6001 to request the applicable Withdrawal Request package that will need to be completed.

ING will review your completed Withdrawal Request and all supporting documentation to determine whether it satisfies the Plan and IRS requirements for an unforeseeable emergency withdrawal. If additional information is required in order to make a determination, you will be notified by phone or in writing. If your request is denied, you will be notified in writing.

Click here for an unforeseeable emergency withdrawal form.

457(b) Transfers for the Purchase of Service Credits

A participant may request a direct transfer of all or a portion of his account to any qualified retirement plan that accepts direct transfers for the purchase of eligible prior service credit. The process for the purchase of service credit under KPERS is described below:

The County and participant complete form #67 (Application) and submit to KPERS.

KPERS will send the participant and the County a Service Credit letter and form 67T.

The County will provide the participant with ING’s Trustee to Trustee Request form with instructions to mail or deliver both the form 67T and the Trustee to Trustee Request form to ING’s Overland Park Ofice. The County, ING’s Overland Park Office or ING’s national customer contact center can provide participants with assistance in completing the ING form.

ING’s Overland Park Office will review the forms for good order and sign off on the 67T. They will fax the ING form to ING’s Hartford, Connecticut office and fax the signed 67T form to KPERS.

457(b) Loans

Loans are not available under the 457(b) Plan.

401(a) Supplemental Retirement Plan Highlights

The information highlighted below is a summary of the 401(a) Supplemental Retirement Plan. In the event of a conflict between the information contained within this Web site and the 401(a) Supplemental Retirement Plan document, the Plan document controls.

The Plan is established under Internal Revenue Code Section 401(a).

401(a) Eligibility

All County employees who have attained age 18 and who fall within the following classifications are eligible:

Regular full-time employees scheduled for 80 hours or greater per pay period;

Part-time benefits eligible employees who are in position of .50 full-time equivalent or greater; and

Elected officials and appointees of the County.

401(a) Contributions

All contributions under the Plan are made by the County. You are eligible to receive a County matching contribution if you defer a minimum of $10 per pay period to the 457(b) Plan. The matching contribution is discretionary and may change from year to year. It is based on the amount you contribute to the 457(b) Plan. For 2008, it will equal 100% of your contribution to the 457(b) Plan up to a maximum of 3.00% of your base pay per biweekly pay period.

Employee contributions to the 401(a) Supplement Retirement Plan are not permitted.

401(a) Vesting

Upon severance from employment, you will be vested in (have earned ownership of) all or a portion of your 401(a) account balance based on the applicable vesting schedule below:

The vesting schedule, based on your number of years of service with the County, is as follows:

For Elected Officials of the County
1 year - 25%
2 years - 50%
3 years - 75%
4 years - 100%

For all other Eligible Employees
1 year- 20%
2 years- 40
3 years- 60%
4 years- 80%
5 years- 100%

Notwithstanding the above schedules, you are always 100% vested in your 401(a) Supplemental Retirement Plan account upon your attainment of normal retirement age (age 65), your death, your total and permanent disability, discontinuance of employer contributions to the Plan and termination of the Plan.

401(a) Timing of Distributions

Earliest Date - Distributions are allowed upon separation from service, retirement, disability or death. You are not permitted to receive a distribution of benefits while you are still working.

Latest Date - The IRS requires that distributions under a 401(a) plan begin no later than the April 1^st of the calendar year following the calendar year in which you attain age 70½ or separate from service, whichever occurs later. If you fail to receive the minimum required distribution for any tax year, a 50% excise tax is imposed on the required amount that was not timely distributed. These rules are referred to as IRS required minimum distribution requirements (RMD).

The Plan provides for a default payment option in the event you do not select a payment option at the time RMD payments are to begin. The default will provide for periodic payments in an amount that meets the annual IRS RMD requirements.

After you have severed employment and would like to select a benefit payment option, please call ING’s national customer contact center at (800) 584-6001 to request the Termination/Distribution Request Authorization form that you will need to complete.

401(a) Distribution of Small Account Balances After Severance from Employment

The Plan provides for an automatic distribution of your account if 1) the value of your 401(a) account is less than $5,000, 2) two years have passed since you severed employment and 3) you have not elected a payment option. Distribution will be made as follows:

If the value of your account is $1,000 or less – payment will be made in a lump sum distribution.

If the value of your account is greater than $1,000 but not greater than $5,000 – your account value will be automatically rolled over into an individual retirement annuity. (Please note that since you will be transferring from an employer sponsored arrangement to an individual annuity, different investments and expenses will apply under the individual retirement annuity.)

401(a) Payment Options

When you are entitled to a distribution of benefits under the Plan, you can choose from any (or a combination) of the payment options described below:

Periodic payments from your account over a specified period or for a specified amount, or periodic payments that meet the annual RMD requirements.

Lump sum, or partial lump sum distribution
- Take all or a portion of your account balance in cash.

Annuity Options
- Choose from a variety of annuity options including a joint and survivor annuity, life annuity and life annuity with period certain.

Rollover into another eligible plan
- Your distribution can be rolled over into a 401(a), 401(k), 403(b) or government 457(b) plan or a traditional IRA.
- All distributions are eligible for rollover except for: 1) IRS required minimum distributions payable on or after you attain age 70½; and 2) periodic payments made over your life or a specified period of 10 years or more.

Postpone any decision on benefit payments until a later date.

401(a) Divorce

In the event of your divorce, the court may issue a domestic relations order that addresses the split of your account and the payment of a portion of your benefits to an alternate payee. ING will review your domestic relations order to determine whether it satisfies the Plan and IRS requirements for a Qualified Domestic Relations Order. If it does, and the alternate payee is your former spouse, he or she is entitled to elect immediate distribution of the amounts awarded under the QDRO. A spousal alternate payee is also eligible to rollover amounts awarded to another eligible retirement plan in which he or she participates

To obtain additional information, including procedures and a model QDRO document, please contact ING’s national customer contact center at (800) 584-6001.

401(a) Beneficiary Designation and Death Benefits

You are permitted to designate a person or persons to receive payment of benefits in the event of your death. You designate an initial beneficiary on the Enrollment Form. To make changes to your previous designation, you complete a Beneficiary Designation Form, available by clicking here. The completed form must be returned to ING.

Upon your death, benefits would be payable to the beneficiary(ies) that you designated under the Plan. If you have not designated a beneficiary or the beneficiary(ies) you designated are no longer living, payment of death benefits will be made to your estate.

Your beneficiary will be entitled to select from a variety of payment options, which are generally the same options that would have been available to you. Your beneficiary will need to call ING’s national customer contact center at (800) 584-6001 to request the Death Benefit Withdrawal Request package that will need to be completed.

401(a) Taxation

All of the payments you receive from the Plan are subject to federal and state income taxes.

Federal income tax withholding will apply to your payments, as described below, based on whether you are eligible to rollover the distribution.

If you receive a distribution that is eligible to be rolled over, a mandatory 20% will be withheld for federal tax purposes at the time of payment.

If you receive a distribution that is not eligible to be rolled over, 10% federal tax will be withheld at the time of payment. However, you may elect to have no withholding withheld.

Amounts distributed are subject to the 10% federal penalty tax if distributed prior to your attaining age 59½, unless an exception applies. Exceptions are:

Distributions made to your beneficiary upon your death.
- Payments made on account of your total and permanent disability.
- Substantially equal periodic payments (at least annually) made for your life or life expectancy (joint lives or joint life expectancies with your designated beneficiary).
- Distributions made after separation from service after attainment of age 55.
- Payments to an alternate payee pursuant to a qualified domestic relations order.

ING does not offer legal or tax advice. Please seek the advice of your own legal or tax advisor prior to making a tax-related investment decision.

401(a) Loans

Loans are not available under the 401(a) Plan.

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Insurance products issued by ING Life Insurance and Annuity Company. Financial planning and securities offered through ING Financial Advisers, LLC (member SIPC), One Orange Way, Windsor, CT 06095-4774, or other broker/dealers with which it has a selling agreement.