The Kansas Board of Regents Mandatory Retirement Plan
What is the Mandatory Retirement Plan?
The Mandatory Retirement plan is a defined contribution retirement program offered to all unclassified faculty and staff working half-time or more in a benefits-eligible position at a Kansas Board of Regents institution or Board Office.
Participation in the Mandatory Retirement Plan is mandatory after completing one year of service. New employees may, under certain circumstances, be qualified to participate immediately. Participants in the Mandatory Retirement Plan contribute a percentage of gross salary (currently 5.5%) through payroll reduction and the University also contributes a percentage of the participant's annual gross salary (currently 8.5%).
Enhanced ING Program through the Mandatory Retirement Plan (available after 12/31/06)
The Kansas Board of Regents Mandatory Retirement Plan and ING
When you choose ING for your Mandatory Retirement Plan, you and your employer each contribute a percentage of your total compensation to ING Retirement Choice, through which you have access to a menu of diverse investment choices from well-known mutual fund companies. You also have access to a fixed account option offered through a group fixed annuity contract issued by ING Life Insurance and Annuity Company (guarantees are based on the claims-paying ability of ING Life Insurance and Annuity Company).
These contributions are made on a pre-tax basis — your salary is "reduced" by the amount of your contribution, and you are not taxed on those contributions or the earnings until the money is distributed from the annuity. Both your contribution and your employer's contribution are sent to ING and invested according to your investment selection.
Click here for the Disclosure Booklet for ING Retirement Choice.
Mutual Funds offered at NAV
With ING Retirement Choice, it is easier to check on how your investments are doing day-to-day. The program offers a menu of mutual funds whose performance is calculated at Net Asset Value (NAV). See the Investments section of this website for more information about the available options.
Note: mutual funds charge fees, including advisory fees, 12b-1 fees and sometimes redemption fees. Fees depend on the investment option chosen. Please refer to the individual Fund prospectuses for fund fee information. In addition, other program fees, including asset based charges, may apply. You can also refer to the fund fact sheets and performance included in this website for information about specific fund fees.
Vanguard® Target Retirement Funds
The menu of investment options available under the plan includes Target Date funds – the Vanguard® Target Retirement Funds. The year in the Fund name refers to the approximate year (the target date) when an investor in the Fund would retire and leave the work force. The Fund will gradually shift its emphasis from more aggressive investments to more conservative ones based on its target date. Investments in Target Retirement Funds are subject to the risks of their underlying funds. An investment in the Target Retirement Fund is not guaranteed at any time, including on or after the target date.
See the Investments section of this website for more information about the Vanguard® Target Retirement Funds.
Vanguard and the ship logo are trademarks of the Vanguard Group, Inc.
You should consider the investment objectives, risks, charges and expenses of the mutual funds offered through a retirement plan carefully before investing. The prospectuses/prospectus summaries/information booklets contain this and other information, which can be obtained by contacting your local representative. Please read the fund prospectuses carefully before investing.
Fixed account option
The ING Fixed Plus Account III is offered through a group fixed annuity contract issued by ING Life Insurance and Annuity Company. It provides principal and minimum interest rate guarantees (guarantees are based on the claims-paying ability of ING Life Insurance and Annuity Company). See the Investments section of this website for more information.
Maintenance Fee
There is no annual maintenance fee. Fund management fees and other fund operating expenses will apply.
Deferred Sales Charge (DSC)
There is no DSC. This product allows full portability at separation from service or retirement.
Fund Transfers
No restrictions for transfers among variable investment options, subject to ING’s Excessive Trading Policy, which limits frequent or disruptive transfers.
Loans
Loans are not available.
Distribution Options
ING Retirement Choice provides a variety of distribution options to choose from, including:
Distributions will be taxed as ordinary income when received and, if taken prior to age 59½, an IRS 10% premature distribution penalty tax may apply.
For 403(b)(1) fixed annuities, employee deferrals (including earnings) may generally be distributed only upon your: attainment of age 59½, severance from employment, death, disability, or hardship. Note: Hardship withdrawals are limited to employee deferrals made after 12/31/88. Exceptions to the distribution rules: No Internal Revenue Code withdrawal restrictions apply to ’88 cash value (employee deferrals (including earnings) as of 12/31/88) and employer contributions (including earnings). However, employer contributions made to an annuity contract issued after December 31, 2008 may not be paid or made available before a distributable event occurs. Such amounts may be distributed to a participant or if applicable, the beneficiary: upon the participant's severance from employment or upon the occurrence of an event, such as after a fixed number of years, the attainment of a stated age, or disability.
Transfers
Transfers of eligible assets are permitted between Regents-approved provider companies, including ING, prior to separation from service or retirement.
Mutual funds and annuities offered through a retirement plan are long-term investments designed for retirement purposes. Mutual fund values fluctuate with market conditions, and when surrendered, the principal may be worth more or less than the original amount invested. A group fixed annuity is a long-term insurance contract designed for investing for retirement purposes. The guarantee of the fixed account is based on the claims-paying ability of the issuing insurance company. Although it is possible to have guaranteed income for life with a fixed annuity, there is no assurance that this income will keep up with inflation. Early withdrawals may be subject to a deferred sales charge and, if taken prior to age 59 ½ may be subject to an IRS 10% premature distribution penalty tax. Money distributed will be taxed as ordinary income in the year the money is received. An annuity does not provide any additional tax benefit, as tax deferral is provided by the Plan. Annuities may be subject to additional fees and expenses, to which other tax-deferred funding vehicles may not be subject. However, an annuity does offer other features and benefits, such as lifetime income payments and death benefits, which may be valuable to you.
ING does not offer tax advice. Please consult a tax adviser or attorney before making a tax-related investment/insurance decision.
Existing ING Program through the Mandatory Retirement Plan (available before 12/30/06)
The Kansas Board of Regents Mandatory Retirement Plan and ING
When you choose ING for your Mandatory Retirement Plan, you and your employer each contribute a percentage of your total compensation to a variable annuity contract, issued by ING Life Insurance and Annuity Company (ING). These contributions are made on a pre-tax basis — your salary is "reduced" by the amount of your contribution, and you are not taxed on those contributions or the earnings until the money is distributed from the annuity. Both your and your employer's contribution are sent to ING and invested according to your investment selection.
Contract Charges and Fees
Withdrawals
Withdrawals are available upon separation from service or retirement. Federal taxes are due upon withdrawal (withdrawals from the Mandatory Retirement Plan are exempt from Kansas income tax per K.S.A. 74-4923(b).)
Distributions
Payout options at separation from service or retirement
ING has developed several payout options available to you when you leave the employment of your university. With these options, the emphasis is on flexibility.
Please note: Federal taxes are due upon withdrawal. Distributions from the Mandatory Retirement Plan are exempt from Kansas income tax per K.S.A. 74-4923(b). We suggest you consult with your tax adviser or attorney prior to choosing an option:
Distribution at death
Your benefits will be distributed according to the payment method in effect at your death (consistent with the provisions of the plan, contract, and applicable Required Minimum Distribution) if you die while receiving benefits. If you die before a payout starts, your named beneficiary may:
Guaranteed death benefit
The death benefit is guaranteed to be the greater of:
1. the current value of the account plus any applicable positive market value adjustment; or
2. the total of contribution(s) made to the individual account minus the total of any withdrawals or annuitizations.
Guarantees apply to the claims-paying ability of ING Life Insurance and Annuity Company.
Loans
Loans are not available.
Transfers
Transfers of eligible assets are permitted between Regents-approved provider companies, including ING, prior to separation from service or retirement.
You should consider the investment objectives, risks, charges and expenses of the variable product and its underlying fund options carefully before investing. The prospectuses/prospectus summaries contain this and other information, which can be obtained by contacting your local representative. Please read the prospectuses carefully before investing.
Variable annuities offered through a retirement plan are long-term investments designed for retirement purposes. Early withdrawals prior to age 59½ may be subject to a 10% premature distribution penalty tax. Money distributed from the annuity will be taxed as ordinary income in the year the money is received. Account values fluctuate with market conditions and when surrendered, the principal may be worth more or less than its original amount invested. Tax deferral is provided by your employer’s plan and the tax deferral of the annuity does not provide any additional benefit. Annuities may be subject to additional fees and expenses to which other tax-qualified plan funding vehicles may not be subject. However, annuities provide features and benefits such as lifetime income payments and death benefits which may be valuable to you.
For 403(b)(1) fixed or variable annuities, employee deferrals (including earnings) may generally be distributed only upon your: attainment of age 59½, severance from employment, death, disability, or hardship. Note: Hardship withdrawals are limited to employee deferrals made after 12/31/88. Exceptions to the distribution rules: No Internal Revenue Code withdrawal restrictions apply to ’88 cash value (employee deferrals (including earnings) as of 12/31/88) and employer contributions (including earnings). However, employer contributions made to an annuity contract issued after December 31, 2008 may not be paid or made available before a distributable event occurs. Such amounts may be distributed to a participant or if applicable, the beneficiary: upon the participant's severance from employment or upon the occurrence of an event, such as after a fixed number of years, the attainment of a stated age, or disability.
ING does not offer tax advice. Please consult a tax adviser or attorney before making a tax-related investment/insurance decision.
Insurance products, annuities and retirement plan funding issued by (third party administrative services may also be provided by) ING Life Insurance and Annuity Company. Securities are distributed by ING Financial Advisers, LLC (member SIPC), One Orange Way, Windsor, CT 06095. Securities may also be distributed through other broker-dealers with which ING Financial Advisers, LLC has selling agreements.
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© 2002 - 2010 ING North America Insurance Corporation Insurance products issued by ING Life Insurance and Annuity Company. 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. |