Roman Catholic Diocese of Des Moines. Christian Brothers 403(b) Retirement Plan Information

Transcription

1 Roman Catholic Diocese of Des Moines Christian Brothers 403(b) Retirement Plan Information August, 2012

2 Roman Catholic Diocese of Des Moines Christian Brothers 403(b) Retirement Plan Information Eligibility Eligible Employees: Regularly scheduled to work 20 or more hours per week Complete a one year probationary period before matching contributions are allowed. Employees that transfer from one location to another within the Des Moines Diocese do not have to start their probationary period over. Employees can defer immediately and are immediately vested in all contributions. As of July 1, 2010 the parish or school will provide one of the following contributions to each employee who participates in the Christian Brothers 403(b) Plan 50% of the employee s contribution up to 3% of salary 50% of the employee s contribution up to 4% of salary 100% of the employee s contribution up to 3% of salary 100% of the employee s contribution up to 4% of salary The matching formula for the priests will be 100% of the priests contribution up to $125 per month. Locations which were providing a discretionary contribution to the employees prior to July 1, 2010 are allowed to grandfather these employees arrangements, and implement the matching formula for all new employees after July 1, Christian Brothers Quarterly Fee The quarterly fee for each employee is $ This fee will be deducted from the employees retirement account each quarter and the employer will contribute 50% of this fee or $8.50 to the employees account at the end of each quarter. If an EE transfers from one location to another within the quarter, the initial location will pay the ER half of the fee for that quarter. Additional Information: Loans loans are not available in the 403(b) plan Hardship Withdrawals Can be made for the following reasons: To pay deductible medical expenses for employee, spouse, child or dependents To purchase primary home Stop eviction from primary home, or stop foreclosure on such home To pay tuition for the next 12 months or college for employee, spouse, child or dependent

3 To pay funeral expenses or burial expenses for deceased parent, spouse, child or dependent To pay for repair of principal residence. A 10% early withdrawal penalty will apply if taken before age 59 ½. Hardship withdrawals are also subject to ordinary income tax of 10%. Restrictions apply to the amount that can be withdrawn. An employee that takes a hardship withdrawal will not be allowed to defer or receive matching contributions for a period of 6 months after the withdrawal. The Employee must call Vanguard Customer Service to request the withdrawal. In-Service Distributions In service distributions are allowed for employees over age 59 ½. The employee must call Vanguard Customer Service to request the withdrawal. Death Christian Brothers will send beneficiary packet directly to beneficiary. Fund Choices If an Employee fails to choose a fund on their enrollment form, Christian Brothers will choose the Vanguard Target Retirement Income Fund for them. Employee Investment Changes If an employee makes an investment change on the enrollment/change form, the change applies to new contributions only. If they want to transfer funds from one fund to another, they must call Vanguard Customer Service or do this online. 7/19/2012 K:\R\ROMACATH\Finsvc\2012\Christian Brothers\CB 403(b) Retirement Plan Information.doc

4 Roman Catholic Diocese of Des Moines 403(b) Process for Benefit Managers Newly Eligible Employees LMC will send Christian Brothers Retirement Plan kits to newly eligible employees upon receipt of New Hire Notice. Employees are instructed to return Enrollment/change form to LMC or Benefit Manager. An employee is required to return the Enrollment/change form whether they choose to participate or not. LMC will attempt to contact employee if the enrollment/change form is not returned. If we are unable to contact employee we will contact the Benefit Manager to obtain the form. If the employee returns the Enrollment/change form to LMC, we will forward a copy to the Benefit Manager and to Christian Brothers. If the employee returns the form to the Benefit Manager, a copy of the form should be retained by the Benefit Manager and a copy sent to LMC. LMC will then send a copy of the form to Christian Brothers. LMC will confirm with Vanguard that the new retirement account has been initiated. A copy of the Enrollment form for all eligible employees should be retained by the Benefit Manager NOTE: Each location has the ability to choose the matching contribution. This information is not retained by LMC and Christian Brothers. You will need to provide this information to your employees.

5 Existing Employees Benefit Managers should keep a copy of Christian Brothers Retirement Plan kits to provide to employees if requested. These kits can be obtained from LMC. Enrollment/Change Forms If the employee returns the Enrollment/change form to LMC, we will forward a copy to the Benefit Manager and to Christian Brothers. If the employee returns the form to the Benefit Manager, a copy of the form should be retained by the Benefit Manager and a copy sent to LMC. LMC will then send a copy of the form to Christian Brothers. If an employee is only changing their deferral amount this form is not forwarded to Christian Brothers. Employees can change their deferral amount quarterly. Each location can allow changes more frequently as long as you make this available to all employees. If an EE makes changes in their fund choices, this applies only to new deferrals and contributions. If they would like to transfer funds from one fund to another, they must contact Vanguard Customer Service or make the changes online. Notice of Change Forms These changes include: Termination of employment, Address change, Change, Death, Retirement, Disability, Hardship, or Other changes Benefit Manager should complete a change form and forward a copy to LMC. All Changes - LMC will forward to Christian Brothers and confirm change.

6 Terminations & Retirement LMC will send a letter to employee informing them of their options regarding the retirement plan. Death - Christian Brothers will send beneficiary kit and instructions directly to beneficiary. Christian Brothers Quarterly Fee The quarterly fee for each employee is $ The employer will pay 50% of this fee or $8.50. You will receive an invoice from LMC at the end of each quarter for this fee. Please make any necessary corrections on the invoice and forward the invoice and check, made payable to Christian Brothers Retirement Plan Fee, to Christian Brothers. If you make changes, please forward a copy of these changes to LMC. Note: If the employee works 1 day within the quarter, the fee will be charged to the account. If an employee transfers from one location to another within the Diocese of Des Moines, within the quarter, the previous location will pay the fee for that quarter. Additional Information: Hardship Withdrawals An employee must contact Vanguard directly to request a hardship withdrawal. The employee will be required to complete forms that will be provided by Vanguard. All forms can be obtained by contacting LMC, or most forms are also available on HR Connection.

7 Christian Brothers 403(b) Retirement Plan Contacts: Benefit Managers - Obtain General Plan Information Benefit Managers - Request Employee Packets and Forms Employees Request information regarding General Plan information or Investment Questions LMC Carmen Willmore, CMFC, CISR Personal Risk Management Account Advisor 4200 University Ave., Ste 200 West Des Moines, IA x 183 carmen.pender@lmcins.com Benefit Managers - When you cannot contact LMC and need an answer immediately Benefit Managers -General Plan Information Benefit Managers - Employee Information Christian Brothers Retirement Plan Services Janet Lenert 1205 Windham Parkway Romeoville, IL x 2630 Janet.Lenert@cbservices.org

8 Employee Obtain account information and values Employee Investment questions Employee Make investment changes Employee Fund information, i.e. yields, return, etc. Employee Request fund prospectus Employee Request termination form Employee Request hardship withdrawals Employee Request internet access to accounts Vanguard Customer Service #

9 Christian Brothers 403(b) Retirement Information New Enrollment or Changes As an employee with the Roman Catholic Diocese of Des Moines you are eligible to participate in the Christian Brothers Retirement Savings Plan if you are a full-time employee regularly scheduled to work 20 or more hours each week. You are eligible to defer contributions from income immediately. You are eligible for an employer match on the first anniversary of employment. Please check with your business manager at your parish/school regarding the amount of match. Please complete the Enrollment/Change Form and Beneficiary Designation Form and return to me in the envelope provided or return to your Business Manager. Even if you choose not to participate, please indicate that in Step 2 of the Enrollment/Change form and return the form to your Business/Benefit Manager. Please feel free to contact me if you have any questions or concerns. I may be reached at or , ext. 183, or via at carmen.pender@lmcins.com. Sincerely, LaMair-Mulock-Condon Co. Carmen Willmore Carmen Willmore, CMFC, CISR Personal Risk Management Account Advisor Enclosures Securities and Advisory Services offered through VSR Financial Services, Inc., a registered investment advisor and member FINRA/SIPC. LMC Financial Services, LLC is independent of VSR. Securities offered through VSR Financial Services are not obligations of or guaranteed by LMC. The purchase of securities involves investment risks, including the possible loss of principal.

10 Vanguard Section 403(b)(9) Custodial Account - Non-Erisa Retirement Savings Plan Plan # Enrollment/Change Diocese of Des Moines Step 1: Account Information (Last, First, MI) Home Address of Location: Check one: New Enrollment Address Change Payroll Change Location Code City State Zip Date of Birth (mm/dd/yyyy) Date of Hire (mm/dd/yyy) Daytime Phone # Evening Phone # Step 2. Payroll Directions How many hrs per week are you regularly scheduled to work? Plan Entry Date (mm/dd/yyy) I authorize my employer to deduct the following amount from my compensation each pay period and contribute that amount to my savings plan account. % Deferral (indicate from 1% to 100% in whole % s or fixed whole dollar amount) 0% - I do not wish to participate in the Christian Brothers Retirement Savings Plan. 0% - I wish to suspend my contributions to the Plan. Step 3. Investment Election Investment of Contributions - Select investment(s) from ONE option ONLY. Option I. Pick a single Vanguard Target Retirement Fund Select the ONE Target Retirement Fund closest to your anticipated year of retirement (use age 65 as your guideline). 100% of your contributions will be invested in this fund. Vanguard Target Retirement 2060 Fund Vanguard Target Retirement 2055 Fund Vanguard Target Retirement 2050 Fund Vanguard Target Retirement 2045 Fund Vanguard Target Retirement 2040 Fund Vanguard Target Retirement 2035 Fund Vanguard Target Retirement 2030 Fund Vanguard Target Retirement 2025 Fund Vanguard Target Retirement 2020 Fund Vanguard Target Retirement 2015 Fund Vanguard Target Retirement 2010 Fund Vanguard Target Retirement Income Fund Option II. Core Funds For the following funds, specify percentages in 1% increments. The total must equal 100%. Fund Code Fund Allocation Vanguard Windsor II Fund Vanguard Prime Money Market Fund Vanguard Total Bond Market Index Fund Vanguard Wellington Fund Vanguard U.S. Growth Fund Vanguard 500 Index Fund Vanguard FTSE Social Index Fund Vanguard Total Stock Market Index Vanguard International Growth Fund Aquinas Value Fund Fidelity Blue Chip Growth Fund Vanguard Extended Market Index Fund Your allocations must total 100% Step 4. Acceptance Allocation Please sign the application and return to the Christian Brothers Retirement Services Benefits Office. Signature of Participant Step 5: To be Completed by Plan Sponsor Date Please make a copy for your records. Signature of Plan Sponsor Date

11 Vanguard Section 403(b)(7) Custodial Account - Non-Erisa Retirement Savings Plan Plan # Beneficiary Designation Account Information (Last, First, MI) Location Code Home Address City State Zip Date of Birth (mm/dd/yyyy) Daytime Phone # Evening Phone # Beneficiary Information Primary Beneficiary Relationship Relationship Relationship Relationship Please indicate the percentage of your balance to be allocated to each beneficiary. Percentages and secondary beneficiaries must each total 100%. Secondary Beneficiary Relationship Relationship Relationship Relationship Authorization Signature of Participant Date Signature of Plan Sponsor Date 01/01/2009

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14 NOTICE OF CHANGE (093264) Location No. 403(b) Return This Form To: Christian Brothers Retirement Savings Plan 1205 Windham Parkway Romeoville, IL SECTION I: EMPLOYEE DATA of Employer: City/State Employee Last First Middle Street Address City State Zip Soc. Sec. No. SECTION II: AFTER ENROLLMENT CHANGES CODE DESCRIPTION CODE DATE EFFECTIVE (1) (2) (3) (4) (5) (6) (7) (8) (9) Employment Ended Address Change Change Death Retirement Disability Hardship Plan Termination Other (specify) DATE OF FINAL PAYCHECK Date Signed Signature of Employer or Plan Sponsor Position c:\data\wp\visio\change.vsd

15 I am contacting you to make you aware of the options you have with your Christian Brothers 403(b) plan upon your termination of employment with the Roman Catholic Diocese of Des Moines. You have 3 options: 1) Leave your retirement plan dollars in your current Christian Brothers 403(b) at Vanguard. The $17.00 administrative fee will be automatically deducted from your account balance each quarter. 2) Roll your current account to another retirement plan with another employer or self-directed IRA. 3) Cash out your account. If you cash out your account prior to age 59 ½ you will be subject to a 10% penalty and 10% will also be withheld for taxes. 4) If your account balance is below $1,000 and you do not roll it to another retirement plan or a self-directed IRA it will be automatically distributed to you and it will be treated as though you took a cash distribution and you will pay penalty and interest. Please feel free to contact me if you have any questions about the above information. Sincerely, LaMair-Mulock-Condon, Co. Carmen Willmore, CMFC, CISR Personal Risk Management Account Advisor

16 Vanguard Section 403(b)(7) Custodial Account - Non-Erisa Step 1: Account Information (Last, First, MI) Retirement Savings Plan Plan # Direct Rollover Location Code Daytime Phone # Evening Phone # Balance Eligible for Rollover Eligible rollover distribution: % to be transferred as direct rollover % to be made payable to me If you wish to make a direct rollover directly to another institution, it is your responsibility to open an account before providing the following information. You must make sure that your rollover meets any minimum contribution requirements. If you are rolling over into a Vanguard IRA, please indicate the Vanguard IRA Adoption Agreement with this form. If rolling over into a Vanguard IRA, skip to the Mailing Address section of this form. Trustee/ Institution Plan/Account Non-Vanguard Traditional IRA Eligible Employer Plan (See the Special tax Notice for the definition of eligible employer plan.) ( of company receiving your assets. Please show name exactly as check should be made payable.) Plan Number (if applicable) Account Number Note: If account number is not provided, the Direct Rollover check will be mailed to you. Mailing Address Choose only one. Mail check to me. Mail check to institution at the address below. Rollover to Vanguard IRA (Attach Vanguard IRA Adoption Agreement) Address City State Zip Authorization I hereby acknowledge that I have received and read the Special Tax Notice Regarding Plan Payments. Signature of Participant Date Please make a copy for your records. (07/08/2004) T25667_072004