Benefits Bulletin 04 10 17

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The following letter was mailed to APS employees.

April 10, 2017

Re: Arlington Public Schools Cash Match Defined Contribution Plan (“the 401(a) Plan”)

Arlington Public Schools (APS) previously announced a change to discontinue cash match contributions into the 401(a) Plan at TIAA. Effective February 28, 2017, APS began directing School Board cash match contributions directly into employees’ 403(b) accounts with APS’s retirement providers.

Effective May 10, 2017 the 401(a) Plan at TIAA will be terminated and no longer allow the rolling over of assets into the 401(a) Plan. Despite the termination of the 401(a) Plan at TIAA, it’s important that you continue to invest your savings effectively to maximize your retirement benefits. You have several distribution options available for your retirement balances.

Your distribution options:

1. Do nothing:

Your Group Supplemental Retirement Annuity and/or Supplemental Retirement Annuity is an individual contract with TIAA that will continue to be serviced by TIAA. Your account will maintain its tax-deferred status and you may still transfer between investment accounts within your annuity. No additional contributions may be made to this contract.

If you are currently invested in the TIAA Traditional Annuity Account (the account that guarantees both principal and interest), you can find out your rate today at TIAA.org or by calling 800 842-2252.

If you keep your account with TIAA, you can continue to receive their personalized financial and retirement planning services. To schedule an appointment, call 800 732-8353 or visit www.tiaa.org/schedulenow.

2. If you would like to roll over your plan assets into another eligible plan or an Individual Retirement Account (IRA):

Funds invested with TIAA may be rolled into another eligible plan or IRA to the extent permitted by the terms of the contracts. This transaction is not a taxable event and there are no distribution fees.

3. Full or partial withdrawal:

You have the option to take a distribution of your TIAA account held under the 401(a) Plan in any of the options available under the 401(a) Plan. You may elect a full lump sum, partial withdrawal, installment payments or an annuity option. If you elect a partial withdrawal or installment payments, the remainder of your account will be treated as described in Option 1.

Any amount that is paid directly to you from your retirement account will be taxed as ordinary income. In addition, if you are not age 59½ at the time of any distribution to you, you may be subject to an additional 10% early distribution tax penalty as defined by the IRS.

How to get more information:

As you begin to reevaluate your retirement planning strategy, know that TIAA remains committed to helping you prepare for your financial goals. To help you better understand your options under the 401(a) Plan and discuss your specific situation, we invite you to contact TIAA.

  • Visit TIAA’s website at TIAA.org/acps
  • Call TIAA at 800 842-2252, Monday to Friday, 8 a.m. to 10 p.m. and Saturday, 9 a.m. to 6 p.m. (ET), to speak with a Financial Consultant.

If you have any questions regarding your retirement plan options mentioned in this notice, please contact TIAA at the number above.

Sincerely,

Ellen Kennedy
Director of Employee Relations

*Any guarantees under annuities issued by TIAA are subject to TIAA’s claims-paying ability.

TIAA Traditional is a guaranteed insurance contract and not an investment for federal securities law purposes. Investment, insurance and annuity products are not FDIC insured, are not bank guaranteed, are not deposits, are not insured by any federal government agency, are not a condition to any banking service or activity and may lose value. Investment products may be subject to market and other risk factors. See the applicable product literature or visit www.tiaa.org/acps for details.