VBCPS has selected Voya’s Retirement Choice II packaged program as the funding option for the 403(b) Plan. With this program, you can build a portfolio from a broad menu of investment options managed by well-known mutual fund companies. There are target-date funds available along with a separate fixed interest option. The program offers a variety of employee services to assist you from enrollment to retirement. The following summary highlights some important plan features. For more information, please schedule an appointment to meet or speak with a local representative. More details about plan features may be found in the Voya Retirement Choice II Information Booklet or the plan document maintained by your employer.
All current full-time, part-time and temporary employees of VBCPS are immediately eligible to participate in the Plan. You do not have to wait for open enrollment.
Contributions under the Plan are made by participants through a payroll deduction and will represent a reduction in salary either on a pre-tax or after-tax [Roth] basis. Under the Plan, the maximum annual contribution amount is set by Internal Revenue Service (IRS) guidelines on a yearly basis. You may view the current limits here.
Under the Plan, the maximum annual contribution amount is set by IRS guidelines on a yearly basis. You may view the current limits here.
Automatic Rate Escalator
You can choose to use the Automatic Rate Escalator to select regularly scheduled increases to both your before-tax and Roth 403(b) after-tax contribution rates. You have the choice to pick the percentage of increase, set a maximum contribution rate (Plan maximum is 75%), initial increase date and the frequency of subsequent increases. The frequency options are one-time, quarterly, semi-annually or annually. If you change your contribution rate, it will automatically cancel your rate escalator election.
Distributions made from pre-tax basis deferrals and any relevant earnings will be taxed when withdrawn, and will be subject to an IRS 10% premature distribution penalty tax if taken prior to age 59½., unless an IRS exception applies. Distributions made from after-tax [Roth] deferrals and any relevant earnings will not be taxed when withdrawn and will be subject to an IRS 10% premature distribution penalty tax if taken prior to age 59 ½
Rollovers and Exchanges
Participants may only have two loans outstanding under the Plan at any time.
Minimum loan amount loans is $1,000.
The maximum loan amount is the lesser of: 1) $50,000 minus the excess (if any) of the highest outstanding balance of loans during the one year period ending on the day before the loan is taken, over the outstanding balance of loans on the date the loan is taken; or 2) 50% of your vested account balance.
There is a $75 loan origination fee per loan and a $25 annual fee. This fee is deducted from your account balance. A loan will have an impact on the growth potential of your savings, and you will need to repay the loan amount plus interest through a bank draft. Once you have paid off your loan, you must wait one year before you can request a new loan.
Eligible Withdrawals, including Hardship Withdrawals, and Loans must be in accordance with plan rules and approved by the plan sponsor prior to requesting funds from your account at Voya. VBCPS has selected planwithease.com to help administer these options in compliance with IRS regulations. Instructions on how to access your account on planwithease.com and request the approval certificate are on VBCPS403b.beready2retire.com. Under the Plan Information tab click on In-Plan Exchanges & Plan Provider Distribution Requests. If you need assistance with planwithease.com, you may contact their customer service associates at 855-464-6928, Monday-Friday, 8 a.m. to 6 p.m. or at firstname.lastname@example.org.
The following types of withdrawals from your pre-taxcontributions are available through the Plan:
- Attainment of age 59½
- Severance from employment or retirement1
- Financial hardship
- Qualified Domestic Relations Order (QDRO)
Distributions prior to age 59½ may be subject to an IRS 10% premature distribution penalty tax. In addition, Roth contributions may be distributed tax-free only if the 5 year holding period requirement has been satisfied.
When eligible for a withdrawal, your payment options are as follows:
- Systematic withdrawal of your account (for account balances of at least $5,000)
- Deferral of all or a portion of your benefits to a later date
- Lump sum, or partial lump sum distribution in combination with other options
- Rollover into Another Eligible Plan
Withdrawal forms can be obtained by contacting Voya’s Customer Service Center at 800-584-6001 or by logging into your online account and choosing Account>Withdrawals>Request A Withdrawal.2
Eligible Withdrawals, including Hardship Withdrawals, and Loans must be in accordance with plan rules and approved by the plan sponsor prior to requesting funds from your account at Voya. VBCPS has selected planwithease.com to help administer these options in compliance with IRS
regulations. Instructions on how to access your account on planwithease.com and request the approval certificate are on VBCPS403b.beready2retire.com. Under the Plan Information tab click on In-Plan Exchanges & Plan Provider Distribution Requests. If you need assistance with planwithease.com, you may contact their customer service associates at 855-464-6928, Monday-Friday, 8 a.m. to 6 p.m. or at email@example.com.
1You may be eligible to withdraw funds that were rolled into your account from a former employer plan prior to severance, however, you may be subject to an IRS 10% premature distribution penalty tax.
2If you are withdrawing funds from a legacy service provider with your current employer, you must contact your legacy service provider for their withdrawal forms. However you should still follow the instructions described below with obtaining an approval certificate from planwithease to provide to your legacy service provider.
Annual Administrative Charge - $0
Financial Wellness Experience
Financial wellness is about the balance of living for today, saving for tomorrow, and building confidence along the way. To help guide you, Voya is proud to bring you the Financial Wellness Experience. Log in to your account and select the Financial Wellness tab above myOrangeMoney. Complete your personal assessment to learn how to take meaningful actions for your financial future.
You should consider the investment objectives, risks, and charges and expenses of the mutual funds offered through a retirement plan, carefully before investing. The fund prospectuses and information booklet containing this and other information can be obtained by contacting your local representative. Please read the information carefully before investing.
Mutual funds under a custodial or trust account agreement are intended as long-term investments designed for retirement purposes. Money distributed from a 403(b) plan will be taxed as ordinary income in the year the money is distributed. Early withdrawals from a 403(b) plan, if taken prior to age 59½, will be subject to the IRS 10% premature distribution penalty tax unless an exception applies. Account values fluctuate with market conditions, and when surrendered the principal may be worth more or less than the original amount invested. A group fixed annuity is an insurance contract designed for investing for retirement purposes. The guarantee of the fixed account is based on the claims-paying ability of the issuing insurance company. Although it is possible to have guaranteed income for life with a fixed annuity, there is no assurance that this income will keep up with inflation. An annuity does not provide any additional tax deferral benefit; tax deferral is provided by the plan. Annuities may be subject to additional fees and expenses to which other tax-qualified funding vehicles may not be subject. However, an annuity does offer other features and benefits, such as lifetime income payments and death benefits, which may be valuable to you.
For 403(b) fixed or variable annuities, employee deferrals (including earnings) may generally be distributed only upon your: attainment of age 59½, severance from employment, death, disability, or hardship. Note: Hardship withdrawals are limited to employee deferrals made after 12/31/88. Exceptions to the distribution rules: No Internal Revenue Code withdrawal restrictions apply to ‘88 cash value (employee deferrals (including earnings) as of 12/31/88) and employer contributions (including earnings). However, employer contributions made to an annuity contract issued after December 31, 2008 may not be paid or made available before a distributable event occurs. Such amounts may be distributed to a participant or if applicable, the beneficiary: upon the participant’s severance from employment or upon the occurrence of an event, such as after a fixed number of years, the attainment of a stated age, or disability. For 403(b) custodial accounts, employee deferrals and employer contributions (including earnings) may only be distributed upon your: attainment of age 59½, severance from employment, death, disability, or hardship. Note: hardship withdrawals are limited to: employee deferrals and ‘88 cash value (earnings on employee deferrals and employer contributions (including earnings) as of 12/31/88).
Insurance products, annuities and retirement plan funding issued by (third party administrative services may also be provided by) Voya Retirement Insurance and Annuity Company ("VRIAC"), Windsor, CT. VRIAC is solely responsible for its own financial condition and contractual obligations. Plan administrative services provided by VRIAC or Voya Institutional Plan Services LLC ("VIPS"). VIPS does not engage in the sale or solicitation of securities. All companies are members of the Voya® family of companies. Securities distributed by Voya Financial Partners LLC (member SIPC) or third parties with which it has a selling agreement. Custodial account agreements or trust agreements are provided by Voya Institutional Trust Company. All products and services may not be available in all states.