SBCTC RETIREMENT PROGRAM REVIEW
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401A/414h State Board Retirement Plan (SBRP)
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403B Defined Contribution Retirement Plan (old retirement plan)
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403B Voluntary Tax Deferred Savings Program
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ELIGIBILITY
401a/414h SBRP
“Eligible Employee”
Employment as a full- or part-time faculty member, exempt professional or exempt administrator;
and, employment requiring compensated services of no less than 50 percent of full-time.
403b Voluntary Deferral Plan
“Eligible Employee”
Any Employee of a Participating Employer except:
Students whose wages are exempt from FICA
Non-resident aliens who receive no U.S. – source earned income
Non-permanent employees working less than 20 hours per week who have and are expected to.
work less than 1000 hours in a year
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CONTRIBUTIONS
401a/414h SBRP
Age weighted
Employer (401a)
Employee (414h)
Under age 35
5%
5%
Between age 35 and 49
7.5%
7.5%
Age 50 and over
10%
10%
403b Voluntary Deferral Plan (Employee only)
Salary Reduction Agreement needed
Pre-tax versus Roth deferrals
2012
2013
Under age 50
$17,000
$17,500
Catch up age 50+
$5,500
$5,500
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INVESTMENTS
All SBCTC plans have the same investment menu:
– Lifecycle Funds (11 in 5 year increments)
– Mutual Funds (24 on current menu)
– Annuities (10 on current menu)
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LOANS
EMPLOYER RETIREMENT PLAN (SBRP & old 403b)
401a/414h = No loans
403b DC = No loans
Voluntary Deferral Plan
403b = Loans available
Lesser of:
$50,000 Total or,
One half of the value of the Participant's Account
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HARDSHIP WITHDRAWALS (Employee representation method used)
401a/414h SBRP
You have an immediate and heavy financial need; and you have no other resources reasonably available to meet
the need.
For the SBRP, withdrawals are deemed to be for “an immediate and heavy financial need” only if they are:
Payments to prevent eviction from or foreclosure on your principal residence;
Payments to prevent your impending bankruptcy; and/or
Unreimbursable medical expenses incurred by you, your spouse, your dependent children,
and/or dependent parents.
If you are actively employed and experience a financial hardship, you may withdraw all or part of
the following plan funds:
Pre - 1998 employee contributions (these contributions are in the previous State Board
403(b) Retirement Plan)
Pre - 1989 earnings on employee contributions
Any Section 414(h) employer pick-up contributions (these are the contributions currently
being made on your behalf from your salary by your employer), and
Any contributions transferred to this plan from another employer’s plan.
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HARDSHIP WITHDRAWALS
403b Voluntary Deferral Plan
You have an immediate and heavy financial need; and you have no other resources reasonably available
to meet the need.
The following are deemed to be immediate and heavy financial needs of the Participant:
– Medical expenses described in Code Section 213(d) incurred by the Participant or his or her spouse or
dependents;
– Purchase (excluding mortgage payments) of a principal residence for the Participant;
– Payment of tuition, room and board for the next 12 months of post-secondary education for the
Participant, his or her spouse, his or her children or his or her dependents;
– The payment of amounts necessary to prevent the eviction of the Participant from his or her principal
residence or the foreclosure on the mortgage of his or her principal residence;
– Funeral/Burial Expenses; or
– Principle residence casualty repair.
Hardship Distributions will be deemed to be necessary to satisfy an immediate and heavy financial need
of the Participant if all of the following are satisfied:
– the distribution does not exceed the amount of the applicable need increased by taxes resulting from the
distribution;
– the Participant has obtained all distributions, other than Hardship Distributions, and all nontaxable loans
currently available under the Program and any other plan maintained by the Participating Employer;
– the Participant's Contributions under the Program and his or her elective and employee contributions
under any other deferred compensation plan maintained by the Participating Employer are suspended for
six (6) months after receipt of the Hardship Distribution.
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Hardship Withdrawal Process
The procedure a local college administrator should follow:
If the participant first approaches the college to request a hardship withdrawal:
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Provide the State Board Hardship Withdrawal Application form and ask the employee to complete it consistent with the
instructions.
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The correct college representative approves the hardship withdrawal by signing the State Board form, thereby confirming
that the employee has certified that he or she meets one or more of the eligibility criteria.
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Direct the employee to TIAA-CREF’s National Contact Center at 800-842-2776 to obtain the TIAA-CREF Request for
Hardship Withdrawal (F11267) form which includes the spousal waiver. (At no time should you give the employee any of
this paperwork. If you currently have any of TIAA-CREF’s hardship withdrawal forms, please recycle them.)
When the participant calls TIAA-CREF:
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A determination will be made on the availability of funds
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The amount available for withdrawal will be calculated
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The correct TIAA-CREF forms will be completed with the employee’s information by TIAA-CREF, then sent to the
employee for signatures and college approvals. The forms are then returned to TIAA-CREF for review and processing.
If the participant contacts TIAA-CREF first:
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TIAA-CREF will notify the employee of the requirement to complete the State Board form in addition to the TIAA-CREF
forms
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TIAA-CREF will initiate the process as outlined immediately above
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The local administrator should not sign the TIAA-CREF form without completion of the State Board’s form.
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CONTACT AND WEBSITE INFORMATION
Malachy Moran (Mal)
Relationship Manager
mmoran@tiaa-cref.org
425-922-3423
David Garrison
Client Services Consultant
dgarrison@tiaa-cref.org
800-842-2638 ex245854
SBCTC/TIAA-CREF Microsite – www.tiaa-cref/sbctc
TIAA-CREF Public Website – www.tiaa-cref.org
SBCTC Retirement Plan webpage – www.sbctc.ctc.edu/college
(click “Personnel”, then “Retirement Plans and Documents”)
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