2015 BAW Conference

Defined Contribution Programs:

Overview and UpdateReneè Dash

Nancy Ornduff

Overview of plans

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Primary retirement plans

or

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SCRS State ORP

Primary retirement plans

South Carolina Retirement System (SCRS)•Provides a monthly retirement income benefit for life based on a statutory formula•Benefit amount not subject to investment risk•Benefit options at separation from service:• Request a refund of member account (employee

contributions plus accrued interest)• Rollover member account• Leave funds in plan and, if eligible, draw a monthly benefit

at retirement

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Primary retirement plans

South Carolina Optional Retirement Program (State ORP)•Retirement benefit consists solely of contributions and any related investment gains or losses

• Entire employee contribution and employer contribution to the employee’s ORP account are fully vested immediately (i.e., belong to the employee)

• Employee is responsible for drawing down assets to create retirement income

•Employee bears investment risk•Five years to change to South Carolina Retirement System•Vendors are MassMutual, MetLife, TIAA-CREF and VALIC

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Supplementalretirement plans

South Carolina Deferred Compensation Program (SCDCP)•A voluntary, supplemental defined contribution program to help employees save additional money for retirement•Consists of a 401(k) plan and a 457(b) plan•Recordkeeper is Empower Retirement

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401(k) plan highlights

• 2015 employee contribution limit of $18,000 (excludes available catch-up contributions)• Distributions upon severance of employment (10 percent

early withdrawal tax may apply)• In-service distributions upon attainment of age 59 ½• Accepts incoming rollovers from 401(a), 401(k), 403(b)

and other eligible plans• In-service transfers allowed to purchase defined benefit

service credit• Allows for loans and financial hardship withdrawals

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457(b) plan highlights

• 2015 contribution limit of $18,000 (excludes available catch-up contributions)• Distributions upon severance of employment (no

applicable early withdrawal tax)• In-service distributions upon attainment of age 70 ½• Accepts incoming rollovers from other 457 plans• In-service transfers allowed to purchase defined benefit

service credit• Allows for loans and unforeseeable emergency

withdrawals

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Defined contribution updates

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Defined contribution updates

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Defined contribution updates

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Food for thought…

• What is retirement readiness?• How can I determine if I’m on track to reach my

financial retirement goals?• How do I translate my defined contribution balance

into a stream of income during retirement?• How can I increase my financial IQ?

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Questions

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Business Transformation Project

Benefits at WorkAugust 31 – September 3, 2015

What is the Business Transformation Project?

• Collaboration with Public Employee Benefit Authority (PEBA) and its Deferred Compensation Program (Program) • Streamline reporting processes and improve efficiencies

• PEBA contracts with Empower Retirement (Empower) • Recordkeeping• Administration• Communication services

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Business Transformation Project goals

• Standardize the Program experience for all participants and their employers

• Maximize the Program’s capabilities

• Drive positive retirement outcomes for Program participants

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Participating employer requirements

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Employer and participant benefits

• Demographic Information ensures Empower’s records are up-to-date and helps safeguard participant data

• Providing termination dates results in faster processing of withdrawal requests

• Providing salary information helps ensure retirement readiness

• Electronic remittance is the fastest and safest way for Empower to receive and invest participant contributions

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Payroll Data Interchange (PDI)

• Required for employers with more than 25 employees

• Comprehensive file of employee information– Updated in conjunction with your payroll

• Employers already gather the required data for payroll administration– Eliminates the need for duplicate data entry

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Information included in the PDI

• Demographic information - Social Security number (SSN), name, complete address, birthdate, gender, marital status, salary, state of residency

• Employment information - hire date, termination date, rehire date

• Contribution information - employee contribution, employer contribution, loan repayment, Roth contributions

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Step-by-step guide

Step 1: Complete the payroll data form

Step 2: Gain access to the Plan Service Center

Step 3: Set up electronic banking

Step 4: Set up your payroll processing

Step 5: Review deferral and loan files

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How do I implement PDI?

Your Empower Retirement account manager and Plan Technical Support will be with your every step of the way!

•Review data requirements for your file•Prepare your test file to upload through the PSC website•Assist with the mapping process •Contact you when Empower is ready to process your first file and work to resolve any issues

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Empower resources

• Plan Technical Support - 800.695.4952 – 8:30 a.m. to 8 p.m., Monday - Friday

• Caryn Davis 303.737.3036 caryn.davis@empower-retirement.com

• Sheila Perkins 303.737.6562 sheila.perkins@empower-retirement.com

• Monthly Plan Service Center webinars and online demonstrations of the PSC

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Additional employer resources

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Employer webpage

www.southcarolinadcp.com

• Click on “Employers” tab– Enrollment kits order form– Annual Leave worksheet – 401(k) Plan document– 457 Plan document– Plan Service Center

webinar

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Program procedures

• New enrollments

• Employer transfers

• Contribution changes

• Annual Leave payout

• TERI payout

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2015 contribution limits

The 401(k) Plan and 457(b) Plan have separate contribution limits (i.e. contributions to one plan do not count toward the limit of the other plan).

•401(k) Plan– $18,000 for under age 50– $24,000 for age 50 and older (with age 50+ Catch-Up of $6,000)

•457(b) Plan– $18,000 for under 50– $24,000 for age 50 and older (with age 50+ Catch-Up of $6,000)– Up to $36,000 with Special 457(b) Catch-Up

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Local support

There are six Retirement Plan counselors and one Retiree Specialist available for:

•New employee orientations•Program seminars•Employer training on Plan rules•Individual account reviews for participants•Lunch and Learn sessions•Retirement seminars and individual counseling•Webinars

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Your local retirement plan counselors

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Your local office

• Address:200 Arbor Lake Drive, Suite 115 Columbia, SC 29223

• Phone: 803.754.7997

• Email: SCDCP-GW@empower-retirement.com

• Fax: 803.754.7661

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Questions?

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Disclaimer

This presentation does not constitute a comprehensive or binding representation regarding the employee benefits offered by the South Carolina Public Employee Benefit Authority (PEBA). The terms and conditions of the retirement and insurance benefit plans offered by PEBA are set out in the applicable statutes and plan documents and are subject to change. Please contact PEBA for the most current information. The language used in this presentation does not create any contractual rights or entitlements for any person.

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