457 Frequently Asked Questions
- Who is eligible?
- What is the ESC Region 10 457(b) Retirement Savings Plan?
- How is the ESC Region 10 457(b) Retirement Savings Plan provided to participants?
- How does the Plan work?
- Who contributes?
- How do I enroll?
- What is the contribution amount?
- How are my Plan contributions invested?
- What are my investment option choices?
- How do I make investment option changes?
- How do I keep track of my account?
- Are there fees to the participants in the plan?
- When can I withdraw money from my account?
- What are my distribution options?
- What happens if I leave employment? When am I required to withdraw my money?
- What if I need some of the funds while I"m still working for my employer?
- What happens to my money when I die?
- Are loans available under the Plan?
- How can I change my salary reduction?
- How can I stop my salary reduction?
- How can I get more information?
Eligibility is determined by your District, so please contact JEM or your District Benefits Office to find out who is eligible under your District's Plan.
2. What is the ESC Region 10 457(b) Retirement Savings Plan?
ESC Region 10 Cooperative is a 457 Deferred Compensation Plan and is a tax-deferred supplemental retirement Plan sponsored by Education Service Center (ESC) Region 10 and your participating District. The Plan is authorized by the Internal Revenue Code (IRC) Section 457(b) and is subject to specific Internal Revenue Service laws and requirements. The Plan allows employees to voluntarily contribute a portion of their compensation on a pre-tax basis. The amount invested plus earnings is not taxable until withdrawn from the Plan.
3. How is the ESC Region 10 457(b) Retirement Savings Plan provided to participants?
ESC Region 10 and your participating District contract with JEM Resource Partners (JEM) and AST Capital Trust to provide administrative, investment and communication services to participants. JEM is the main contact for participants. You can find out how to contact JEM by choosing "Contact Us" from the menu.
You elect the amount you wish to defer from your gross salary each pay period. The amount you elect to defer is withheld from your paycheck each pay period before taxes.
You. There are no employer contributions under this Plan.
You may join the Plan at any time by choosing 'Login' on the left-hand menu and clicking "New to the system? Enroll Now!". You will need your Social Security Number and the plan password provided on the Summary Plan Description for your district. The Summary Plan Description can be found on our website by choosing 'Plan Description' from the left-hand menu.
7. What is the contribution amount?
You decide the amount that you want to contribute. Please keep in mind that there are limits imposed under the Internal Revenue Code. The maximum amount you can contribute during each calendar year is up to 100% of your includable compensation or the maximum listed in the table below, whichever is less.
Maximum Yearly Contribution
Year Maximum 2005 $14,000 2006 $15,000 2007-10 TBD-Indexed to inflation in $500 increments. During one of the three calendar years prior to your Normal Retirement Age* you may utilize the Standard Catch-up provision by making additional contributions to the Plan of up to twice the regular deferral limit.
Maximum Yearly Contribution Utilizing Standard Catch-up
Year Maximum 2005 $28,000 2006 $30,000 2007-10 TBD-Indexed to inflation in $500 increments. If you are age 50 or older you may utilize the Age 50+ Catch-up provision by making additional contributions to the Plan. During any year in which you are utilizing the Standard Catch-up provision you may not utilize the Age 50+ Catch-up provision. The additional contribution amounts are listed in the table below:
Additional Yearly Contribution Utilizing Age 50+ Catch-up
Year Maximum 2005 $4,000 2006 $5,000 2007-10 TBD-Indexed to inflation in $500 increments. Before utilizing the Standard Catch-up and Age 50+ Catch-up please consult your tax advisor.
*The term "Normal Retirement Age" shall mean the range of ages from the earliest age at which the Participant has the right to retire and receive a retirement benefit, under the Teachers Retirement System of Texas, without actuarial or similar reduction because of retirement through and including age 70½, as designated by the Participant. Any Participant who works beyond age 70½ may designate a Normal Retirement Age greater than 70½ provided, however, that Normal Retirement Age may not be later than the date or age at which the Participant terminates employment with the Employer.
8. How are my Plan contributions invested?
You will have full access to your account upon enrollment. You may choose your preferred allocation at the time of enrollment. A fully managed portfolio is available at not extra cost. If you do not make an election your contributions will be invested in a money market account.
To view the most recent investment option information choose "Investments" from the left-hand menu.
9. What are my investment option choices?
To view the most recent investment option information choose "Investments" from the menu.
If you are managing your own account, you may select which funds to use. There are additional tools online to assist you in determining the appropriate investments and allocations at www.tcginvestments.com.
10. How do I make investment option changes?
If you are changing your investments for the first time, you can enroll by choosing 'Login' on the left-hand menu and clicking "New to the system? Enroll Now!". You will need your Social Security Number and the plan password provided on the Summary Plan Description for your district. The Summary Plan Description can be found on our website by choosing 'Plan Description' from the menu. your investments for the first time by clicking the link below:
If you have already initiated changing your investments, you can make future changes online by logging into www.theretirementsolutiononline.com and accessing your account. You can also access the login page directly by choosing "Login" form the menu.
The following transactions can be made online:
- Move all or a portion of your existing balances between investment options.
- Change how your future contributions are invested.
11. How do I keep track of my account?
You can check your account balance on the website at www.theretirementsolutiononline.com or you may call JEM toll free at 800-943-9179
12.Are there fees to the participants in the Plan?
TCG Investment Advisory Services LP has been hired by ESC Region 10 as the investment advisor and fiduciary to the Plan and receives an advisory fee of .45% of account assets annually. JEM is the Trust Administrator and handles the ongoing administration of the Plan for annual fees equal to $18.50 per year and .25% of account assets. An additional charge of $20.00 will be applied for stop-payment requests, a $5.00 charge for a 1099-R reissue, and a $50.00 charge for any 1099-R revisions.
13. When can I withdraw money from my account?
- Attainment of age 70½
- Death
- Disability
- Termination of Employment
14. What are my distribution options?
- Receive a lump sum distribution (subject to ordinary income tax)
- Rollover your account balance
- Leave in the Plan until a future date (but no later than age 70½ or retirement)
15. What happens if I leave employment? When am I required to withdraw my money?
The Internal Revenue Code allows distribution of funds only upon retirement, termination of service with the participating employer, or attainment of age 70½. At the time you terminate service you may:
- Keep your money invested in the Plan and if desired, continue to manage your money within the offered investment options;
- Withdraw your money - subject to ordinary income tax; or
- Roll your money to an IRA or another eligible employer that accepts rollovers.
16. What if I need some of the funds while still working for my employer?
The Internal Revenue Code and the Plan contain three provisions that allow withdrawal of funds while still employed. These three provisions are limited and have strict requirements, which must first be met. They are:
- An unforeseen emergency must be documented, meet the Internal Revenue Code definitions and criteria, and be approved by the Plan Administrator.
- A "de minimis" withdrawal - this provision allows a withdrawal while employed if your balance is $5,000 or less, you have not deferred for the last 24 months and have never used this provision before.
- Attainment of age 70½, but you must stop your deferrals.
17. What happens to my money when I die?
Your designated beneficiary(ies) will receive the full value of your account. Your beneficiary(ies) must contact JEM to apply for a distribution.
18. Are loans available under the Plan?
Yes, loans are available. The minimum loan amount under the Plan is $1,000 and the maximum loan amount is 50% of your account value. Participants with account values less then $2,000 are not eligible for loans. For further information on loans, please contact JEM at 800-943-9179.
19. How can I change my salary reduction?
You can change your salary reduction at any time online by logging on to your account.
20. How can I stop my salary reduction?
You can stop your salary deferrals at any time online by logging on to your account.
You may begin contributing again to the Plan at any time online by logging on to your account
21. How can I get more information?
To get more information about the Plan or enrolling in the Plan, please contact JEM at 800-943-9179, or visit the other areas of this website.