Payment Options

Selecting the type of distribution option that you will use for your Mississippi Deferred Compensation Plan & Trust (MDCPT) account can be just as important as your investment choices. Over the past few years, several enhancements to your payment options have been implemented to better meet your needs.

When do benefit payments under the Plan begin?

You may begin receiving your benefits Forty-five (45) days after your separation from service

or

You may formally elect to defer payment of your benefits to a later date, but not later than April 1 following the year in which you turn 70½.

How are Plan benefits distributed?

You may take your entire account value in a lump sum.

You may take a partial lump sum and with the balance of your account choose a Systematic Withdrawal Option (SWO) or annuity payout. A $10,000 minimum account balance is required for a SWO distribution.

You may begin receiving the following guaranteed monthly annuity payments (provided your account balance is $1,500.00 or more):

The following describes the options that are available as a payment directly from your MDCPT account provided you have a minimum account balance of $10,000.00 and are entitled to receive a distribution under the MDCPT:

Systematic Withdrawal Option (SWO)/Estate Conversation Option (ECO)

SWO is a distribution option which allows you to leave your money invested (during the distribution period) in any or all of the investments* offered in the Mississippi Deferred Compensation Plan & Trust. With SWO you receive distributions from your account based on one of the approved payment methods discussed below. The balance of your account remains invested in the funds offered by the MDCPT according to the investment allocation instructions received by SBA from you. The investment return on your account balance is tax deferred. Taxes are paid only on the distributions you receive each year.

Withdrawal options that are available as a payment directly from your MDCPT account through SWO

Specified Period** - Payments are made for the number of years elected. Annual payments are determined by dividing the prior year end account value by the number of payment years remaining. The payment period cannot exceed your life expectancy determined at the time of your request for a SWO.

Specified Payment** - The requested amount is paid until the account balance and earnings are depleted. A minimum distribution (equal to the prior year-end account value divided by a Life Expectancy Factor) will be paid if it is greater than the specified payment.

These payments may be made monthly, quarterly, semiannually or annually provided this election results in payment amounts of at least $250.00. Checks may be mailed directly to you or your bank for receipt by the 15th of the month.

SWO payments are taxable income in the year in which you receive them.

Estate Conservation Option (ECO)

This option allows you to leave your money invested (during the distribution period) in any or all of the investments offered in the Plan (except life insurance). The first distribution may not be made before the later of the calendar year in which you attain age 70 ½ or retire. This option is designed to make annual payments to you in conformity with the minimum distribution requirements of the federal tax laws.

To qualify for a distribution under this option you must be:

a. Retired and at least age 70½, or

b. Retired and elect to receive a distribution in a year in which you will attain age 70½.

For information on all of the payment options listed above, please contact the retirement specialist at your local SBA office in Jackson, MS. Estimates, forms and information regarding these options are available upon request. You may call 601-364-9350 or 1-800-846-4551.

*Life insurance cannot be used with SWO .

**May be subject to company contract withdrawal limitations.

Third Party Administration services provided by and securities distributed through Systematized Benefits Administrators, Inc. (SBA).