Qualified Retirement Plans (Procedure 2.5000)
|Based on board policy number and Florida Statute:||Effective Date:
|Florida Statute: 1001.64; Florida Statute: 1001.65; Florida Statue: 1012.865; FAC 6A-14.0261; Board Policy 2.220; Board Policy 2.111; Board Policy 2.120 ; Board Policy 2.222
To outline the procedure to be followed to implement qualified retirement plans, which provide employees with retirement savings opportunities that offer tax advantages to employees and the College.
- Mandatory Employer Contribution Plan
- Eligibility - This is a mandatory retirement plan for full-time employees who are eligible to participate. Those eligible include:
- Employees separating from their full-time employment with the College or transferring from vacation-earning to non-vacation-earning positions and who:
- are enrolled in one of the College's retirement plans (Florida Retirement System Pension Plan, FRS Investment Plan, Community College Optional Retirement Program, Senior Management System Optional Annuity Program, Seminole State College's Senior Management Local Annuity Plan, or other retirement plans that are established by the Florida Department of Management Services or the College's Board of Trustees), and
- meet the same age and service requirements as per the FRS Pension Plan for Normal Retirement or have attained age 59 1/2 and have at least 6 years of creditable service in any of the Florida State retirement systems or other retirement plans as provided by the College for retirement.
- Employees who are DROP participants. These employees continue to work for the College, but are considered retired with the Florida Retirement System.
- Contributions - Payments to eligible employees for their accumulated sick and vacation leave shall be paid into the Mandatory 403(b) Qualified Retirement Plan, to the maximum allowable per Internal Revenue Service regulations. Any payment amounts which exceed the 403(b) allowable maximum will be taxable to the employee. The College will determine the amounts to be paid to employees for their accumulated leave based on Florida State statutes, Board policies and College procedures.
- Discretionary Employer Contribution Plan
- Eligibility - The College determines the eligible full-time employees for this discretionary plan annually.
- Contributions - The College determines the contributions for this plan annually, including specifying the types of compensation that will be paid to the eligible employees through this 403(b) Qualified Retirement Plan. Any payment amounts which exceed the 403(b) allowable maximum will be taxable to the employee.
- Employee Voluntary Tax-Deferred Plans
Employees may choose to participate in tax-deferred plans established by the College, such as 403(b) and 457(b) plans. These Qualified Retirement Plans are designed for long-term savings so employees are advised to use other methods to save for immediate needs.
- Eligibility - All full-time and part-time employees are eligible to participate in these plans.
- Contributions - Employee contributions into voluntary 403(b) and 457(b) tax shelter annuity plans are processed as payroll deductions. Employees should contact College-approved plan providers to determine their tax-deferral limits and ensure they are not exceeded.
- Enrollment - In order to enroll in voluntary tax-deferred plans, employees are to first establish accounts with College-approved plan providers. The provider listing is available on the College HR website and in Human Resources. Once the accounts are established, employees are to complete the College Salary Reduction Agreement forms (available in Human Resources), attach the account documentation from the providers, and submit the forms to the benefits section of Human Resources.
- Transfers and or Withdrawals of Funds - Transfers and withdrawals of funds shall be in accordance with Internal Revenue Service regulations. Employees should contact College-approved plan providers to determine restrictions on fund transfers and withdrawals, as there are tax consequences involved with these transactions.
||President, E. Ann McGee