PLEASE REVIEW THE FOLLOWING INFORMATION BEFORE
SUBMITTING PAPERWORK TO FIRST FINANCIAL:
FORMS NEEDED TO ESTABLISH A NEW 403(b)/403(b)(7) ACCOUNT
•
First Financial Administrators’ Salary Reduction Agreement.
•
The APPLICATION and other paperwork required by the investment
company. If an employer signature is required, please forward it to FFA.
•
TRS’ Uniform Disclosure Notice should be completed by the sales representative
and forwarded to the investment company. (fixed and variable annuities only)
Website: www.trs.state.tx.us
TO INCREASE, DECREASE, OR STOP A CURRENT 403(b)/403(b)(7) REDUCTION
•
Complete First Financial Administrators’ Salary Reduction Agreement only.
AGENTS INFORMATION
•
All agents must enroll on www.ffga.com (click on “Retirement Services”
button then “403(b) Online Agent Enrollment”. When you enroll you are
accepting the “School District Rules for Solicitation” form for the current
school year. Agents must be enrolled in order for business to get processed.
You can obtain forms by visiting our web page at www.ffga.com/403b/403b_main.htm
EMPLOYEES & AGENTS – Once you have completed all necessary forms, please send them
to First Financial to the attention of the Retirement Services Department:
Regular mail:
First Financial Administrators, Inc.
P.O. Box 670329
Houston, Texas 77267
or
Overnight mail:
First Financial Administrators, Inc.
515 N. Sam Houston Pkwy E., 5thFloor
Houston, Texas 77060
*CONTACT US BY:
PHONE:
1-800-523-8422 / 281-847-8422
FAX:
281-847-8427
E-MAIL:
Betty.James@ffga.com
Carolyn.Torres@ffga.com
Christy.Williams@ffga.com
Elizabeth.Gomez@ffga.com
Felix.Zuniga@ffga.com
TDA - A SMART APPROACH FOR MEETING
YOUR FINANCIAL GOALS!
A Tax Deferred Annuity gives you the opportunity to supplement other retirement savings plans and enjoy favorable
tax advantages along the way.
Q.
WHAT IS AN ANNUITY?
A.
An annuity is a contractual agreement between you and a life insurance company. In return for the deposits
you make during your working years, the company promises to pay you monthly payments for a designated
period of time. Only a life insurance company can offer an annuity that guarantees payments for life.
Q.
WHAT IS A 403(b)(7)?
A.
In 1974, along with other code changes, paragraph (7) was added to Code Section 403(b). While previously
403(b) participants were limited to choosing between fixed and variable annuities, Section 403(b)(7) added a
third investment option - mutual funds having custodial arrangements with a recognized financial institution.
For the first time, participants were able to take advantage of the financial opportunities of mutual fund
accounts, including the popular “no load” funds.
Q.
ARE THERE ANY LIMITS TO HOW MUCH I CAN DEFER EACH YEAR?
A.
YES
Provision
2006
2007
2008
402(g) limit on
elective deferrals to
403(b) plans
$15,000
$15,500
Expected to be
$16,000 with
incremental increase
of $500
403(b) deferrals for
participants 50 or
older
$5,000
$5,000
Expected $5,000
**Employees of qualified employers may contribute up to an additional $3,000/year after 15 years of service.
(An averaging calculation must be done to ensure that the option is available)
Q.
WHO SHOULD CONSIDER A TDA?
A.
You should investigate a TDA if:
* You pay substantial amounts of federal income taxes.
* You are in a dual income family.
* You are single, with no dependents.
* You are investing money on an after-tax basis for long-term goals.
* You have sufficient emergency funds.
Q.
WHY IS A TDA AN IMPORTANT SAVINGS PLAN?
A.
Contributions to a TDA are deposited into the plan on a pre-tax basis. In addition, interest earnings
accumulate on a tax-deferred basis.
Q.
HOW ARE CONTRIBUTIONS MADE?
A.
To establish a TDA plan, you must complete an application and a salary reduction agreement form; which, in
effect, reduces your taxable salary. Your employer will automatically reduce your paycheck by the amount
you designate and will contribute that portion to the plan.
Q.
IF I BEGIN THE CONTRACT DURING THE MIDDLE OF THE YEAR, IS IT TOO LATE FOR
ME TO PUT IN THE MAXIMUM ALLOWED AMOUNT FOR THE YEAR?
A.
No. With your employer’s permission, you can establish your salary reduction agreement to make up for the
months you missed so far. For example, if you wish to deposit $100 a month but did not sign up until June;
you could make your agreement for $200 a month until the end of the year and $100 a month thereafter.
Q.
MAY I STOP CONTRIBUTING AT ANY TIME?
A.
YES. You may terminate your salary reduction agreement at any time.
Q.
WHAT HAPPENS IF I CHANGE JOBS?
A.
If you remain eligible for a TDA, you have several options:
1. Continue your present contract with your existing carrier with your new employer.
2. Leave your present contract on paid-up status, if the account value is at least $600; and begin a
new contract with an insurance company offered by your new employer.
3. Transfer the value of your present account to a new contract with an insurance company offered by
your new employer. No taxes will be due if the transfer is executed properly.
4. Take a lump sum distribution. The distribution amount is includeable as income for the year and
taxed accordingly.
5. Choose an annuity option. Annuity payments are taxable as received.
If you do not remain eligible for a TDA, you may choose either option 4 or 5, or:
1. You may transfer your account value to an IRA (IRA Rollover). No taxes will be due if the
transfer is executed properly. However, your account will then be subject to IRA tax rules.
2. You may leave your account on paid up status if the account value is at least $600. No taxes will
be due.
Q.
CAN I HAVE A TDA PLAN IN ADDITION TO OTHER SAVINGS OR RETIREMENT PLANS?
A.
YES. You may have a TDA in addition to your IRA. Because federal and state rules and regulations differ
between IRA’s and TDA’s, it is generally agreed that it is best to maximize your TDA contributions before
starting an IRA. You may also be a participant in other savings or retirement plans your employer provides.
Q.
IF I PLAN TO RETIRE IN JUST A FEW YEARS, SHOULD I PARTICIPATE IN A TDA PLAN?
A.
If you are nearing retirement age, you may be able to make larger salary reductions due to your years of
accumulated past service and thus take maximum advantage of the program until retirement.
Q.
CAN I WITHDRAW MONEY FROM MY TDA PLAN?
A.
The IRS prohibits withdrawal of elective contributions and earnings on those contributions except for:
* attainment of age 59 ½
* death
* disability
* separation from services
* financial hardship (contributions only).
If money is withdrawn for one of the above reasons, ordinary income tax must be paid. In addition, the
contract itself may impose withdrawal or surrender charges. Also, a 10% tax penalty may be imposed by the
IRS in certain circumstances. A financial hardship withdrawal will affect you in two additional ways:
1. Your contributions must be suspended for 6 months following the withdrawal; and
2. Your contributions for the year following this 6 month period will be subject to certain limitations.
Q.
MAY I TAKE OUT A LOAN WITHOUT HAVING TO PAY TAXES ON IT?
A.
Policy loans are permitted by law. The maximum loan amount is generally 50% of account value, not to
exceed $50,000, and must be repaid in five years or it will be considered a taxable distribution. Insurance
companies are not obligated to offer a loan provision.
Q.
WHEN MUST I BEGIN RECEIVING A DISTRIBUTION FROM MY TDA PLAN?
A.
Generally, the IRS requires that a participant must begin receiving retirement benefits no later than April 1
following the year in which the participant reaches age 70 1/2. However, if still employed by an eligible
employer, the participant may defer making withdrawals until retirement/separation from service.
Q.
WHAT CHOICES DO I HAVE REGARDING PAYOUT OPTIONS WHEN I BECOME ELIGIBLE?
A.
You can select from the following retirement distribution options:
1. Lump sum
2. Annuity option:
a. Life income
b. Life income for two payees
c. Cash refund life annuity
d. Payments of a stated dollar amount
e. Payments of a stated period of time
Q.
WHAT HAPPENS TO MY ACCOUNT IF I DIE?
A.
If you die before taking an annuity and your named beneficiary is your spouse, your contract may stay in
force on a paid-up status with your spouse as the contract holder. Your spouse may choose any form of
distribution that was available to you, such as lump sum distribution or annuitization. Your spouse would
also have the option of a rollover to an IRA.
List of 403(b) Certified Companies as of July 11, 2008
Name of Certified Company
AIG Annuity Insurance Company
Annuity
NonAnnuity
x
AIG SunAmerica Asset Management Corp.
AIG VALIC
x
AXA Equitable Life Insurance Company
x
TRS #
Website Address
Phone Number
Company's Annual
Filing Shows
Representatives
Properly Licensed and
Qualified in 2008?
07
-
044
-
01
www.aigannuity.com
800-424-4990
Yes
x
03
-
076
-
02
www.sunamericafunds.com
800-858-8850
No
x
07
-
006
-
03
www.aigvalic.com
800-448-2542
Yes
07
-
047
-
01
www.axaonline.com
800-628-6673
Yes
AllianceBerstein Investments, Inc.
x
07
-
059
-
02
www.alliancebernstein.com
800-221-5672
No
American Century Investments
x
05
-
080
-
02
www.americancentury.com
800-345-3533
Yes
American Funds Distributors, Inc.
x
07
-
011
-
02
www.americanfunds.com
800-421-9900
Yes
x
04
-
077
-
03
www.anico.com
800-835-5320
No
American National Insurance Company
x
American United Life Insurance Company
Americo Financial Life and Annuity Insurance
Co.
x
07
-
062
-
01
www.oneamerica.com
800-249-6269
No
x
07
-
053
-
01
www.americo.com
800-634-1181
Yes
Annuity Investors Life Insurance (AILIC)
x
07
-
003
-
01
www.gafri.com
800-789-6771
Yes
Aviva Life Insurance Company
x
07
-
016
-
01
www.avivausa.com
800-225-8073
No
07
-
073
-
02
www.blackrock.com
800-882-0052
No
BlackRock Funds
x
CM Life
x
07
-
025
-
01
www.massmutual.com
800-366-8226
No
Commonwealth Annuity
x
08
-
090
-
01
http://insuranceservices.se2.com
800-457-9047
Yes
DWS Scudder Distributors, Inc.
x
08
-
066
-
02
www.dws-scudder.com
800-621-1048
Yes
Diversified Investment Advisors, Inc.
x
07
-
086
-
02
www.divinvest.com
800-755-5803
No
Federated Funds
x
06
-
083
-
02
www.federatedinvestors.com
412-358-2226
No
Fidelity Investments
x
07
-
012
-
02
www.403b.com
800-343-0860
Yes
07
-
051
-
01
www.fslins.com
800-648-8624
Yes
Fidelity Security Life Insurance Company
x
First Investors Corporation
x
07
-
008
-
02
www.firstinvestors.com
800-423-4026
Yes
Franklin Templeton Investments
x
08
-
054
-
02
www.franklintempleton.com
800-527-2020
No
* X indicates company has certified that it meets the conditions established by statute (Article 6228a-5, §§ 4-13, Vernon’s Texas Civil Statutes) and rule
(34 Texas Administrative Code, Chapter 53) to offer this product type to Texas school district and open-enrollment charter school employees
through salary reduction agreements.
List of 403(b) Certified Companies as of July 11, 2008
Name of Certified Company
Annuity
NonAnnuity
TRS #
Website Address
Phone Number
Company's Annual
Filing Shows
Representatives
Properly Licensed and
Qualified in 2008?
08
-
089
-
01
www.gafri.com
800-789-6771
Yes
07
-
071
-
03
www.gwrs.com
888-404-4032
No
x
07
-
056
-
01
www.retire.hartfordlife.com
800-528-9009
Yes
Horace Mann
x
07
-
027
-
01
www.horacemann.com
800-999-1030
Yes
ING Life Insurance and Annuity Company
x
07
-
032
-
01
www.ingretirementplans.com
800-262-3862
Yes
ING Retirement Plans
x
07
-
046
-
01
www.ing.com/us/tsa
877-884-5050
Yes
ING USA Annuity and Life Insurance Company
Industrial Alliance Pacific Insurance and
Financial Services, Inc.
x
06
-
082
-
01
www.ingannuities.com
800-369-5303
Yes
x
07
-
072
-
01
www.iaplife.com
888-681-9201
Yes
07
-
049
-
02
www.invescoaim.com
800-959-4246
Yes
Great American Financial Resources
x
Great-West Life & Annuity Insurance Company
x
Hartford Life Insurance Company
Invesco Aim Distributors, Inc.
x
x
Jefferson National Life Insurance Company
x
07
-
052
-
01
www.jeffnat.com
866-667-0561
Yes
Kansas City Life Insurance Company
x
05
-
079
-
01
www.kclife.com
800-821-6164
No
Kemper Investors Life Insurance Company
x
08
-
004
-
01
http://insuranceservices.se2.com
800-457-9047
Yes
07
-
063
-
02
http://investorservices.leggmason.com
800-451-2010
Yes
Legg Mason Partners Fund Advisor, LLC
x
Life Insurance Company of the Southwest
x
07
-
005
-
01
www.lifeofsouthwest.com
800-543-3794
Yes
Lincoln Financial Group
x
07
-
019
-
01
www.lfg.com
800-454-6265
Yes
Lord Abbett Distributor, LLC
x
07
-
055
-
02
www.lordabbett.com
888-445-0031
Yes
MFS Fund Distributors, Inc.
x
07
-
065
-
02
www.mfs.com
800-637-1255
Yes
07
-
024
-
01
www.massmutual.com
800-366-8226
No
07
-
010
-
02
www.membersfunds.com
800-877-6089
Yes
MassMutual Life
x
MEMBERS Mutual Funds
x
Metropolitan Life Insurance Company
x
07
-
031
-
01
www.metlife.com/mlr
800-236-8489
Yes
Metropolitan Life Insurance Co. of Connecticut
x
07
-
039
-
01
www.metlife.com/mlr
800-236-8489
Yes
Midland National Life Insurance Company
x
07
-
035
-
01
www.midlandannuity.com
877-586-0240
Yes
* X indicates company has certified that it meets the conditions established by statute (Article 6228a-5, §§ 4-13, Vernon’s Texas Civil Statutes) and rule
(34 Texas Administrative Code, Chapter 53) to offer this product type to Texas school district and open-enrollment charter school employees
through salary reduction agreements.
List of 403(b) Certified Companies as of July 11, 2008
Website Address
Phone Number
Company's Annual
Filing Shows
Representatives
Properly Licensed and
Qualified in 2008?
01
www.modern-woodmen.org
800-447-9811
Yes
-
01
www.nationwide.com
614-249-7111
Yes
023
-
01
www.newyorklife.com
800-710-7945
No
-
034
-
01
www.nacolah.com
866-322-7065
Yes
NonAnnuity
Name of Certified Company
Annuity
TRS #
Modern Woodmen of America
x
07
-
069
-
Nationwide Life Insurance Company
New York Life Insurance and Annuity
Corporation
North American Co. for Life and Health
Insurance
x
07
-
037
x
07
-
x
07
OppenheimerFunds Distributor, Inc.
x
07
-
045
-
02
www.oppenheimerfunds.com
800-525-7048
Yes
Pacific Life Insurance Company
x
07
-
085
-
02
www.pacificlife.com
800-722-2333
No
Pioneer Funds Distributor, Inc.
x
07
-
014
-
02
www.pioneerinvestments.com
800-622-0176
No
Principal Funds
x
07
-
057
-
02
www.principalfunds.com
800-222-5852
No
08
-
091
-
01
http://insuranceservices.se2.com
800-457-9047
Yes
Protective Life Insurance Company
x
Putnam Investments
x
07
-
042
-
02
www.putnam.com
800-662-0019
Yes
RiverSource Investments, LLC
x
07
-
048
-
02
www.ameriprise.com
800-862-7919
Yes
07
-
067
-
01
www.ameriprise.com
800-862-7919
Yes
07
-
009
-
02
www.securitybenefit.com
800-888-2461
Yes
07
-
020
-
01
www.securitybenefit.com
800-888-2461
Yes
07
-
015
-
02
www.sentinelfunds.com
800-282-3863
No
RiverSource Life Insurance Company
x
Security Benefit
Security Benefit
x
x
Sentinel Group Funds, Inc.
Southern Farm Bureau Life Insurance
Company
x
x
07
-
021
-
01
www.sfbli.com
601-981-7422
Yes
State Farm Life Insurance Company
x
07
-
088
-
01
www.statefarm.com
800-447-4930
Yes
03
-
075
-
02
www.statefarm.com
800-447-4930
No
State Farm VP Management Corp.
x
Symetra Life Insurance Company
x
07
-
013
-
01
www.symetra.com
877-796-3872
Yes
Thrivent Financial for Lutherans
x
07
-
050
-
01
www.thrivent.com
800-847-4836
Yes
x
07
-
040
-
02
www.thrivent.com
800-847-4836
No
x
08
-
043
-
03
www.tiaa-cref.org
800-842-2776
No
Thrivent Investment Management Incorporated
TIAA-CREF
x
* X indicates company has certified that it meets the conditions established by statute (Article 6228a-5, §§ 4-13, Vernon’s Texas Civil Statutes) and rule
(34 Texas Administrative Code, Chapter 53) to offer this product type to Texas school district and open-enrollment charter school employees
through salary reduction agreements.
List of 403(b) Certified Companies as of July 11, 2008
Name of Certified Company
T. Rowe Price
Transamerica Financial Life Insurance
Company
Transamerica Life Insurance Company
Annuity
NonAnnuity
TRS #
Website Address
Phone Number
Company's Annual
Filing Shows
Representatives
Properly Licensed and
Qualified in 2008?
07
-
061
-
02
www.troweprice.com
800-492-7670
Yes
x
07
-
087
-
01
www.divinvest.com
800-755-5803
No
x
07
-
018
-
01
www.durham.transamerica.com
800-237-8872
No
07
-
028
-
02
www.usaa.com
800-531-8292
Yes
x
USAA Investment Management Company
x
USAA Life Insurance Company
x
07
-
033
-
01
www.usaa.com
800-531-8292
Yes
United of Omaha
x
06
-
084
-
01
www.mutualofomaha.com
800-775-6000
No
United Teacher Associates Insurance (UTA)
x
08
-
001
-
01
www.gafri.com
800-438-3398
Yes
The Vanguard Group, Inc.
x
07
-
029
-
02
smallbiz.vanguard.com
610-662-2003
Yes
Van Kampen Funds, Inc.
x
07
-
030
-
02
www.vankampen.com
800-341-2911
No
Waddell & Reed, Inc.
x
07
-
007
-
02
www.waddell.com
888-923-3355
Yes
Washington National Insurance Company
x
06
-
081
-
01
www.conseco.com
800-940-1843
Yes
Western Reserve Life Assurance Co. of Ohio
x
07
-
026
-
01
www.westernreserve.com
800-851-9777
Yes
Woodmen of the World Life Insurance Society
x
07
-
060
-
01
www.woodmen.org
800-225-3108
No
* X indicates company has certified that it meets the conditions established by statute (Article 6228a-5, §§ 4-13, Vernon’s Texas Civil Statutes) and rule
(34 Texas Administrative Code, Chapter 53) to offer this product type to Texas school district and open-enrollment charter school employees
through salary reduction agreements.
403(b) Salary
Reduction Agreement
P.O.BOX 670329
Houston, Texas 77267-0329
Phone Number: (800)523-8422 Fax Number: (281)847-8427
First Name
FFASRA -12/05
Middle Initial
Last Name
Home Address
City
Date of Birth
Date Hired
State
Zip Code
__
Home Phone#
(
)
Annual Salary $
Employer / School District
# of Pay Periods
9
10 11
12
Social Security #
__
Campus Code (Ector Co. Only)
Work Phone#
(
)
Completed by:
20
EFFECTIVE DATE:
24
26
Other _______________ (CIRCLE ONE)
□ As soon as possible □ Later: (Pay date)
/
/
READ IMPORTANT:
THIS FORM REPLACES AND CANCELS ALL PREVIOUS AGREEMENTS ON FILE. VENDOR CODES REQUIRED FOR CALIFORNIA SCHOOLS ONLY.
ACTION TAKEN
Amount Per Pay Period Amount Per Pay Period
N-New I- Increase D- Decrease R–Resume
LIST ALL NEW AND EXISTING COMPANIES BELOW:
403(b) Pre-Tax
Roth 403(b) After-Tax
E– Existing S- Stop
Company Name/ Vendor Code (CA only)
$
$
Circle One - N
I
D
R
E
S
Company Name/ Vendor Code (CA only)
Company Name/ Vendor Code (CA only)
$
$
$
$
Circle One -
N
I
D
R
E
S
Circle One -
N
I
D
R
E
S
$
$
TOTAL PER PAY PERIOD
NEW COMPANY REMITTANCE ADDRESS:
ADDRESS REQUIRED FOR NEW
ACCOUNTS ONLY
HAVE YOU TAKEN A HARDSHIP WITHDRAWAL IN THE LAST 6 MONTHS? Y OR N (CIRCLE) IF YES, INDICATE DATE TAKEN?
Eligible and participating in the “Age 50 + Catch-Up” provision.
Eligible and would like to participate in the “15 Year Catch-Up” provision. Complete the following:
Total past contributions with current Employer through the end of the last calendar year, (include both, Employer and Employee contributions)
403(b) $
(Employee)
401(K) $
(Employee)
403(b) $
(Employer)
401(K) $
(Employer)
Please provide the total amount of excess funds contributed under the “15 Year Catch-Up” provision if being utilized currently or if utilized in the past. $_______________
1. I authorize the Employer and the Employer agrees to reduce the Employee’s salary by the amount stated above and remit to the Provider Company of choice for the purchase of an annuity
eligible under Section 403(b) and/or Section 403(b)(7) of the Internal Revenue Code as amended, providing retirement benefits for the Employee. The Employee’s rights to such annuity are
nonforfeitable.
2. This agreement shall be legally binding and irrevocable while employment continues, provided however, that either party may change or terminate this agreement by giving notice in writing at
least 30 days prior to the effective date of such change or termination.
3. The Employee is responsible for the accuracy of the excludable amounts stated in this Agreement. Any overstatement of the amounts excludable as a salary reduction in this agreement, or any
other violation of the requirement of Section 403(b) could result in additional taxes, interests, and penalties to the Employee.
Employee Signature
Date
Agent/Broker Name (Print)
Date
Agent/Broker Signature
Phone Number:
Texas 403(b) & 403(b)(7) Grandfathered Accounts Form
In accordance with 34 TAC Section 53.2(c) which states:
“A company that entered into a contract with an employee before June 1, 2002, is
not subject to the certification requirements established by this chapter with respect
to that contract, but the company is subject to the certification requirements
established by this chapter with respect to any contracts or qualified investment
products offered to, or entered into with, an employee on or after June 1, 2002”;
and
Section 53.2 (d) which states “If a company has entered into a contract with an
employee before June 1, 2002, the company or employee may demonstrate in a
manner acceptable to an educational institution that the provisions of this chapter do
not apply to the contract in order for the company to receive contributions to, or
payments for purchase of, the qualified investment product described in the contract
through a salary reduction agreement between the educational institution and the
employee.”
By signing below, I testify that the company named on the attached Salary Reduction
Agreement was established prior to June 1, 2002.
______________________________
School District
______________________________
Grandfathered Company Name
______________________________
Participant’s Name (Print)
______________________________
Representative’s Name (Print)
______________________________
Participant’s Signature
______________________________
Representative’s Signature
______________________________
Social Security Number
______________________________
Date
Please note: If the company requires a new application, the company is not considered
grandfathered.
P O Box 670329
Houston, Texas 77267-0329
(281) 847-8422 (800) 523-8422 Fax: (281) 847-8427