1 SBCTC RETIREMENT PROGRAM REVIEW 401A/414h State Board Retirement Plan (SBRP) 403B Defined Contribution Retirement Plan (old retirement plan) 403B Voluntary Tax Deferred Savings Program

2 ELIGIBILITY 401a/414h SBRP “Eligible Employee” Employment as a full- or part-time faculty member, exempt professional or exempt administrator; and, employment requiring compensated services of no less than 50 percent of full-time. 403b Voluntary Deferral Plan “Eligible Employee” Any Employee of a Participating Employer except: Students whose wages are exempt from FICA Non-resident aliens who receive no U.S. – source earned income Non-permanent employees working less than 20 hours per week who have and are expected to. work less than 1000 hours in a year

3 CONTRIBUTIONS 401a/414h SBRP Age weighted Employer (401a) Employee (414h) Under age 35 5% 5% Between age 35 and % 7.5% Age 50 and over 10% 10% 403b Voluntary Deferral Plan (Employee only) Salary Reduction Agreement needed Pre-tax versus Roth deferrals Under age 50 $17,000 $17,500 Catch up age 50+ $5,500 $5,500

4 INVESTMENTS All SBCTC plans have the same investment menu: –Lifecycle Funds (11 in 5 year increments) –Mutual Funds (24 on current menu) –Annuities (10 on current menu)

5 LOANS EMPLOYER RETIREMENT PLAN (SBRP & old 403b) 401a/414h = No loans 403b DC = No loans Voluntary Deferral Plan 403b = Loans available Lesser of: $50,000 Total or, One half of the value of the Participant's Account

6 HARDSHIP WITHDRAWALS (Employee representation method used) 401a/414h SBRP You have an immediate and heavy financial need; and you have no other resources reasonably available to meet the need. For the SBRP, withdrawals are deemed to be for “an immediate and heavy financial need” only if they are: Payments to prevent eviction from or foreclosure on your principal residence; Payments to prevent your impending bankruptcy; and/or Unreimbursable medical expenses incurred by you, your spouse, your dependent children, and/or dependent parents. If you are actively employed and experience a financial hardship, you may withdraw all or part of the following plan funds: Pre employee contributions (these contributions are in the previous State Board 403(b) Retirement Plan) Pre earnings on employee contributions Any Section 414(h) employer pick-up contributions (these are the contributions currently being made on your behalf from your salary by your employer), and Any contributions transferred to this plan from another employer’s plan.

7 HARDSHIP WITHDRAWALS 403b Voluntary Deferral Plan You have an immediate and heavy financial need; and you have no other resources reasonably available to meet the need. The following are deemed to be immediate and heavy financial needs of the Participant: –Medical expenses described in Code Section 213(d) incurred by the Participant or his or her spouse or dependents; –Purchase (excluding mortgage payments) of a principal residence for the Participant; –Payment of tuition, room and board for the next 12 months of post-secondary education for the Participant, his or her spouse, his or her children or his or her dependents; –The payment of amounts necessary to prevent the eviction of the Participant from his or her principal residence or the foreclosure on the mortgage of his or her principal residence; –Funeral/Burial Expenses; or –Principle residence casualty repair. Hardship Distributions will be deemed to be necessary to satisfy an immediate and heavy financial need of the Participant if all of the following are satisfied: –the distribution does not exceed the amount of the applicable need increased by taxes resulting from the distribution; –the Participant has obtained all distributions, other than Hardship Distributions, and all nontaxable loans currently available under the Program and any other plan maintained by the Participating Employer; –the Participant's Contributions under the Program and his or her elective and employee contributions under any other deferred compensation plan maintained by the Participating Employer are suspended for six (6) months after receipt of the Hardship Distribution.

8 Hardship Withdrawal Process The procedure a local college administrator should follow: If the participant first approaches the college to request a hardship withdrawal: Provide the State Board Hardship Withdrawal Application form and ask the employee to complete it consistent with the instructions. The correct college representative approves the hardship withdrawal by signing the State Board form, thereby confirming that the employee has certified that he or she meets one or more of the eligibility criteria. Direct the employee to TIAA-CREF’s National Contact Center at to obtain the TIAA-CREF Request for Hardship Withdrawal (F11267) form which includes the spousal waiver. (At no time should you give the employee any of this paperwork. If you currently have any of TIAA-CREF’s hardship withdrawal forms, please recycle them.) When the participant calls TIAA-CREF: A determination will be made on the availability of funds The amount available for withdrawal will be calculated The correct TIAA-CREF forms will be completed with the employee’s information by TIAA-CREF, then sent to the employee for signatures and college approvals. The forms are then returned to TIAA-CREF for review and processing. If the participant contacts TIAA-CREF first: TIAA-CREF will notify the employee of the requirement to complete the State Board form in addition to the TIAA-CREF forms TIAA-CREF will initiate the process as outlined immediately above The local administrator should not sign the TIAA-CREF form without completion of the State Board’s form.

9 CONTACT AND WEBSITE INFORMATION Malachy Moran (Mal) Relationship Manager David Garrison Client Services Consultant ex SBCTC/TIAA-CREF Microsite – TIAA-CREF Public Website – SBCTC Retirement Plan webpage – (click “Personnel”, then “Retirement Plans and Documents”)