403B and 457 Plan FAQ

Updated:  03-05-2012

Click on the link below to download a pdf version.


Questions
1)  Why did the school District decide to move to a single provider for 403 B and 457 plans?
2)  Who is the new provider?
3)  When will the changes take effect?
4)  Will I need to complete paperwork to stop my contribution?
5)  How will The District find out more information?
6)  Will I personally meet with a representative? Will the District be on our own?
7)  When is the enrollment deadline?
8)  What about loans? When could they begin?
9)  Will I be able to transfer funds to PSRS and PEERS?
10)  Do I have to transfer my existing account to OneAmerica?
11)  Can I consolidate my 403 B or 457 accounts and transfer the funds to OneAmerica?
12)  Will J.W. Terrill and OneAmerica be able to help me with my retirement planning along with my PSRS/PEERS account? Can my spouse come to meetings?
 
Answers
1)  Q Why did the school District decide to move to a single provider for 403 B and 457 plans?
A
  • To assist the District in maintaining compliance with constantly-changing IRS regulations. 
  • Loans, our current plan does not provide loans against 403 B accounts. The new plan will allow for loans against OneAmerica accounts.
  • Fees with a single provider are up to 75% less than with a multi-provider set up. This allows the employee to have more of their contribution invested and not wasted on fees.
  • OneAmerica offers a variety of investment opportunities. Funds will be monitored at all times and non performing funds will be removed from the list. The fund choices will have someone constantly looking at them.
2)  Q Who is the new provider?
A
J.W. Terrill is our broker and OneAmerica is the provider. J.W. Terrill is the District’s current broker for insurance. OneAmerica is headquartered in Indianapolis, but have local representatives. OneAmerica has over 45 years of tax-exempt retirement planning experience and services over 11,000 retirement plans. Local school Districts such as Hillsboro also use this plan.
3)  Q When will the changes take effect?
A
May 1, 2012. You can payroll deduct or transfer into your existing accounts until April 30, 2012.

May 1, 2012 your current accounts will become “orphaned” on our plan and contributions will not be allowed.
4)  Q Will I need to complete paperwork to stop my contribution?
A
No. Your contribution will be automatically stopped with the April 20th payroll. You may fill out paperwork if you wish to discontinue your contributions prior to April 30th. You will send it to Central Office attention payroll.
5)  Q How will The District find out more information?
A
  • The District is in the process of setting up meetings with each building and/or department.
  • The District will send out a schedule when that is finalized.
  • The District will also send links to the webcasts for more information if you are unable to attend a meeting.
6)  Q Will I personally meet with a representative? Will the District be on our own?
A
The District is in the process of setting up specific times that representatives from OneAmerica and J.W. Terrill will be present in your buildings to help with the enrollment process and help you with your retirement planning questions.
7)  Q When is the enrollment deadline?
A
Enrollment is year-round. There will, however, be enrollment deadlines to meet payroll deadlines in May and June. To be included in the May payroll, the enrollment will need to be completed by May 7th. To be included in the June and summer payroll the deadline to enroll will be June 1st. You can set up a time with a representative to personally meet during the summer months also.
8)  Q What about loans? When could they begin?
A
The loan provision can begin as soon as you have a balance in the account. You essentially will be borrowing from yourself. If you transfer funds into the account from another account, your loan could begin relatively quickly. The minimum loan amount will be $1,000 and you will be limited to 50% of your account balance. Your interest rate will be one plus prime, currently 4.25%. The interest will be paid back to your 403 B/457 account. There will be a set up fee for the loan paid to OneAmerica.
9)  Q Will I be able to transfer funds to PSRS and PEERS?
A
Yes. OneAmerica will assist with the paperwork necessary just like your current vendor does. There will not be fees for the transfer to PSRS or PEERS to buy back years.
10)  Q Do I have to transfer my existing account to OneAmerica?
A
No. It is up to you. You may find you will have better access to your funds and your investment options with the OneAmerica program compared to your current vendor. In order to borrow using a loan option, you may want to transfer funds in order to begin that process.
11)  Q Can I consolidate my 403 B or 457 accounts and transfer the funds to OneAmerica?
A
Absolutely. You may find it will be easier to manage with all your retirement savings in one account. You will need to ask your current provider what surrender fees would be applicable. You can transfer in at any time, so you can wait until after the surrender fees expire.
12)  Q Will J.W. Terrill and OneAmerica be able to help me with my retirement planning along with my PSRS/PEERS account? Can my spouse come to meetings?
A
  • Yes, they will be able to assist with planning for your retirement along with your PSRS and PEERS. 
  • Yes, the representatives from J.W. Terrill and OneAmerica will be able to help with retirement questions and investment opportunities that match your risk levels and the years you have until retirement. 
  • Yes, your spouse is welcome to attend the meetings, especially the personal meeting.