GATEWAY 403b PLAN

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GATEWAY 403(b) PLAN

• October 8, 2008

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WHY IS MY 403(b) PLAN PARTICIPATION CHANGING?

• December 2004 proposed IRS regulation changes
  impacting all 403(b) plans
• July 2007 final IRS regulation requirements
  released
• January 2009 all 403(b) plans must be in
  compliance

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WHAT IS THE BIG DEAL?

• 403(b) participation by Gateway employees will
  require participation in the Gateway Technical
  College 403(b) Plan.

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OKAY What does this mean to ME?

• Gateway now sponsors your participation.
• Gateway not just a payroll deduction function for
  403(b) participation
• Provider options have changed
• Third Party Administrator (TPA) MidAmerica
• Investment providers must work with MidAmerica
• TPA will ensure Plan is administered according to
  Plan document

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PLAN DECISIONS

• Mission Statement
• Plan Year
• Eligibility
• Enrollment
• Min-Max Contributions
• Transfers Exchanges
• Loans
• Hardship Withdrawals
• Providers

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MISSION

• It is the intent of the College to take
  reasonable care, skill and caution in the design,
  development and administration of the 403(b) Plan
  including selection of investment providers with
  the primary focus to determine and manage the
  403(b) plan in the interest of the plan
  participants, the community, and the College.

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PLAN YEAR ELIGIBILITY

• PLAN YEAR
• - Calendar

• ELIGIBILITY
• Employees expected to work 1,000 hours/year or
  more
• Employees who have worked 1000 hours/year in the
  prior year
• Exclusions
• Student Employees (Section 3/2/(b)(10)
• Non-resident Aliens

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Enrollment On-going

• Contributions pre-tax
• Minimum None
• Maximum IRS Maximum / Over age 50 catch-up

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457 Plan

• Gateway also offers a 457 Plan deferred
  compensation option
• Great West Retirement

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Transfers Exchanges

• Exchanges allowed within the plan from one
  contract to another contract or from one
  investment to another with the same provider
• Transfers Plan-to-Plan transfers allowed

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Loans Hardship Withdrawals

• Loans
• Allowed - if option of provider
• Administered by TPA

• Hardship Withdrawals
• Allowed - if option of provider
• Administered by TPA

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403(b) Providers

• ING (Aetna)
• Equitable Life Assurance
• Metropolitan Life
• Vanguard Fiduciary
• Wisconsin Educators
• Ameriprise
• Thrivent Financial

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Proposed Investment Provider Selection Strategy

• Broad range of quality investments
• Above average performance
• Low administrative fees

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WHAT HAPPENED TO THE OTHER PROVIDERS?

• Withdrew from the 403(b) market
• WRS/ETF
• Northwestern
• Will not agree to work with TPA, sign our
  Information Sharing Agreement, or adds additional
  cost for administration
• TIAA-CREF
• Eliminated due to low participation (Legal
  Counsel reviewing ability to grandfather current
  participants)
• Horace Mann
• AIM
• MFS

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WHAT IF MY CURRENT PROVIDER IS NO LONGER A 403(b)
PLAN OPTION?

• You can keep your funds in your current account.
• You can rollover the funds into a Gateway 403(b)
  Plan provider.
• You can elect a new 403(b) contribution and
  provider.

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WHAT QUESTIONS DO YOU HAVE?
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CONTACTS

• Debbie Miller, Director Human Resources
• 262.564.3220
• millerd_at_gtc.edu
• Alan Jelinek
• 262.564.2580
• jelineka_at_gtc.edu