457(b) Savings Plan

The 457(b) Savings Plan lets you set aside pre-tax dollars to save for your retirement. If you are already saving under the FCPS 403(b) Tax Deferred Annuity Program, you may save under one or both plans.

It’s simple!

• You enroll on the web or on the telephone.
• You contribute a percent of your pay – ensuring that as your salary increases, your savings rate keeps pace.
• There are seven investment options to choose from – five of which you can track in the newspaper.
• You can move money from one investment to another with no restrictions or charges.
• No sales charges, commissions, annual administrative fee, or mortality and expense fees - ensuring that more of your money is at work for you.
• The 10% early distribution tax does not apply to 457(b) plan withdrawals.

Why participate?

Retirement income typically comes from three sources: Social Security, your employer’s retirement plan, and personal savings. The 457(b) Plan can be part of your personal savings program. Two advantages the Plan offers are:

• Tax savings—You contribute pre-tax dollars thus reducing today’s tax bill.
• Tax-free growth—Your contributions and earnings grow tax-free until you withdraw them.

How much can I contribute?

Up to $15,500 for 2007 or $20,500 if you turn 50 in 2007 or have already passed the half century mark. This is in addition to the maximum contribution allowed under the 403(b) program. This maximum will increase each year according to the following current IRS schedule.

Your election will be a percent of your pay each pay period so as you receive annual salary increases your savings rate will also grow. You can change how much you contribute monthly. You can stop contributing and restart at a later date.

How do I enroll?

You may enroll at any time. Payroll deductions start the month after you enroll.

There are two ways to enroll or to get more information:

• On the web: Go to www.educatorsmoney.com. Click "Guest" and then "Enroll." Enter your Social Security number and the following "Plan Number" - 350224-01. The password is fcps457. You will then create your own personalized account information including a secure PIN number.
• By telephone: Call Great-West Retirement Services toll free at 877-816-0548 (select option 2 for information or option 3 to enroll), Monday through Friday, from 9 a.m. to 8 p.m.

What are the investment options?

There are seven investment options—five mutual funds, one collective fund and a fixed annuity—for you to choose from. You can monitor the performance of the mutual funds in the newspaper each morning. You can transfer money from one investment option to another daily with no restrictions or charges.

When can I withdraw money from my account?

You can withdraw money when you leave FCPS or have an unforeseeable emergency. You can also borrow from your account and pay yourself back.
If you die, the value of your account is paid to your beneficiary.

Are there any administrative fees with the plan?

Effective July 1, 2007 there will no longer be a $30 annual administrative fee.  However, there are fees associated with taking a loan.

There are NO sales charges or agent commissions, mortality and expense fees, or transfer fees or surrender charges. More of your money is working for you.

Can I contribute to the 457(b) and to a 403(b)?

You may contribute

• just to the 457(b) plan,
• just to a 403(b), or
• to both, up to the IRS limits for each.

What happens if I elect to contribute 100 percent of my pay to the 457(b) Plan?

If you elect to contribute 100 percent of your check to the 457(b) plan, you may do so. However, given the standard ‘priorities’ assigned to various deductions by the payroll system, the following deductions will NOT be taken: charitable contributions, dues, summer fund withholding if you are paid on a less-than-12-month basis and receive summer checks, and any secondary deposits to savings accounts at other banking institutions such as Apple Federal Credit Union.

What if I have other questions?

Great-West Retirement Services Educator$Money program is the 457(b) plan provider. You can find more information in the plan description and by contacting Great West customer service at 877-816-0548.

Note: This web page contains links to one or more web pages that are outside the FCPS network. FCPS does not control the content or relevancy of these pages.