A SELECTIVE RETIREMENT PROGRAM Under IRC 401(a)

1
MEETING THE CHALLENGES AHEAD
Getting the Most Value from Your Retirement Plans
2
Key Benefit Plans

• State Retirement System defined benefit
• plan for income
• Qualified Plan Opportunities (403(b), 457, Roth,
  etc)
• Social Security

3
Keys for Retirement

• Review your state pension plan
• - Enroll in MBOS
• - Understand the Financial Value of TPAF
• 2. Know Qualified Plan opportunities
• Review asset allocation
• - Fixed Assets vs. Variable Assets
• Health check-up
• 5. Understanding Social Security

4
Pension Review

1. Understand value
2. Retirement- How? When?
3. Options
4. Life insurance
5. Health

5
New Tax Legislation Provides You Greater Options

• The Economic Growth and Tax Reconciliation Act
  of 2001 enhanced retirement savings options
• Increased plan limits 403(b), 457(b), 401(a)
• Pay accumulated sick and vacation time as
  post-retirement plan contributions
• Employer contributions
• Roth 403(b) January 2006

6
Qualified Plan Options

• 2013 Limits
• 403(b)/ 457(b) limits
• 403(b) - 17,500/ 23,000/ 26,000
• 457(b) - 17,500/ 23,000/ 3 year catch-up
• Employee vs. Employer contributions
• Overall 403(b) / (415(c)) contribution limit
  up to 51,000/year
• (plus age 50/5,500)
• - This includes employer and employee
  limits
• 401(a) Similar Limits

7
Qualified Plan Options

• Employer Contributions
• Employer Match attracts retain key
  administrators
• Sick and vacation 403(b) Post Retirement
  contributions
• - Contributions can be made for 5 years after
  retirement
• - No payroll taxes
• - No income taxes until money is withdrawn from
  the 403(b) plan

Withdrawals prior to age 59½ may be subject to
an additional 10 income tax penalty.
8
You Choose Qualified Plan Designs

• Design Plan(s) for district and personal needs-
• 401(a) for benefits package
• 403(b) for employee benefits and post-employment
  contributions
• Pair with 457(b) for double deferral or potential
  for pre- 591/2 access
• Note Total possible 2013 limits with all three
  100,000

9
So Many New Opportunities for You and Your
Employees!

• Avoid problematic severance pay plans
• (new guidance)
• Maximize savings with multiple plans and
  
• multiple catch up options
• Convert unused leave pay to retirement benefits
  
• Make employer contributions for up to 5 years
  after
• employees leave

10
Our Company

• Facts about AXA Financial
• Over 489.3 billion in assets under management,
  as of 12/31/2011
• 15,000 public schools nationally
• 592 New Jersey Schools
• NJ Higher education

11
Thank You!