The Chesterfield County Public Schools 457(b) deferred compensation plan offers you a way to save even more for retirement. When you combine it with the 403(b) plan, you have the opportunity to contribute twice as much to tax advantaged retirement savings accounts each year. This 457(b) Retirement Plan with VALIC makes it easy for you to invest for your future.
The Chesterfield County Public Schools (CCPS) 457(b) Plan is a voluntary retirement plan that allows you to make pre-tax contributions to your retirement plan through the convenience of a systematic payroll deduction plan. This plan also provides for tax deferred growth of interest and investment earnings, a range of flexible investment options and portability of your personal 457(b) account.
The CCPS 457(b) Plan with VALIC is a powerful way to save money for your future, and it offers you the following unique advantages:
You contribute effortlessly and conveniently by automatic payroll deduction.
You contribute before tax withholding is calculated which reduces current income taxes. You should note that retirement plans such as the 457(b) plan are long-term investments and income taxes are payable upon withdrawal. You decide how to invest all contributions to your account.
Taxes are deferred on interest and earnings while your account grows. You should note that investment values in the variable options will fluctuate so that an investor's units, when withdrawn, may be worth more or less than their original value.
The plan provides retirement and death benefits.
First, since you contribute before tax withholding is calculated, you are able to save for retirement and reduce your current income taxes. Second, all taxes on interest and earnings are deferred until withdrawal or annuity payments begin, usually at retirement. This means dollars that might have been paid toward income tax remain invested, to continue to grow and earn additional income over time. Note that investment values in the variable options will fluctuate so that an investor's units, when withdrawn, may be worth more or less than their original value.
Please note that the 10% income tax penalty for withdrawals prior to age 59 ½ does not apply to the CCPS 457(b) plan.
VALIC's mutual fund platform includes 18 funds, plus a fixed interest account. This will allow employees to diversify their investments across several asset classes, which can reduce investment risk. There are no sales loads on the mutual funds in the plan.
You pay no account maintenance charges.
You can transfer your investment assets among the investment options at no charge. See VALIC's Investor Trading Policy for transfer limitations.
There are no VALIC charges associated with a distribution from your account at separation of service. Your financial advisor can explain the specific withdrawal privileges available to you and any applicable tax penalties for early withdrawal.
Remember that retirement plans are long-term investments and income taxes are payable upon withdrawal.
VALIC is licensed in all 50 states and the District of Columbia. So, if you should move to another state, a financial advisor will be nearby to help you keep your retirement plan on track.
It's easy to join the CCPS 457(b) Program with VALIC. You can enroll anytime after September 1, 2007.
Enrolling in your retirement plan is easy.
To ensure your salary deferrals are processed timely, click here to review the "cut-off" schedules
Click here to enroll in the 457(b) plan.
Call 1-888-569-7055 to reach an Enrollment Specialist. You will be asked to provide your Social Security Number (SSN) and access codes: 02306002.
All contributions will be deposited into your CCPS 457(b) account after every payroll period. You may contribute as little as $25 per pay period or as much as 100% of your 457(b) plan eligible compensation up to the maximum IRS limit – $17,000 in 2012 and an additional $5,500 in 2012 if you are age 50 or older. There is also a service based catch-up available to employees within three years of normal retirement. Your financial advisor can assist in determining the contribution amount that best fits your personal circumstances and financial plans.
Vesting refers to the length of service required for you to own the money deposited into your account. You are always 100% immediately vested in your contributions.
When you retire, or if you terminate employment before retirement, you have the following basic benefit options from which to choose: continuation of tax-deferred accumulation, loan, annuitization, or cash distribution.
You can choose to leave your account on deposit so that it can continue to accumulate tax deferred. This way you can maintain investment flexibility while deferring all current tax liability until withdrawal or annuity payments begin, usually at retirement. You will be required under federal law to begin minimum distributions by April 1 of the year following your retirement or age 70½, whichever is later.
You can receive all or any portion of your account's current value as a cash distribution or as systematic withdrawals. However, if you choose this option, the amount withdrawn is immediately subject to federal income taxes and may be subject to federal early withdrawal tax penalties.
You may take advantage of a tax-free loan from your VALIC 457(b) account. This provision gives you access to cash without permanently reducing the value of your CCPS 457(b) account. Please keep in mind, however, defaulted loan amounts will be taxed as ordinary income and may incur a 10% federal tax penalty if you are under age 59½.
To view or print a prospectus, click here and look to the right-hand side of the screen. Click the appropriate link inside the box title "Prospectuses and Other Important Materials." Click on "Funds" in Quick Links, and funds available for your plan are displayed. The prospectus contains the investment objectives, risks, charges, expenses and other information about the respective investment company that you should consider carefully before investing. Please read the prospectus carefully before investing or sending money. You can also request a copy by calling 1-800-448-2542.