NSU 403(b) Plan Conversion To Safe Harbor 401(k) Plan

NSU 403(b) Plan Conversion To Safe Harbor 401(k) Plan

Office of Human Resources

Safe Harbor Plan

A safe harbor 401(k) plan will be established effective January 1, 2012

This plan will replace the 403(b) plan

Why Are We Making This Change?

The new 401(k) plan:Provides flexibility for employees to choose contribution levelsImproves vesting opportunities for employees making contributions to the planKeeps the same basic plan benefits and investment choices

What is the Same?

Employees can still receive up to 10% of their salary in NSU contributions

TIAA-CREF and Valic will continue to provide us with investment advice and with the same investment options

Plan features such as loans and hardship distributions are still available

What is different?

Employees can now contribute 1%, 2%, 3%, 4%, in the 403(b) they could only contribute 2% or 4% in matching contributions

It is no longer required to be employed on the last day of the year in order to keep NSU’s contribution for the current year

What Happens To The 403 (b) Plan?

The 403 (b) plan will be “frozen”, no new contributions will be made into the plan after December 31, 2011

Participants will direct the investments in their 403 (b) accounts, just as before

Loans, hardship distributions and in-service distributions will be administered according to the 403 (b) plan rules, just as before

“Quiet Period”

To ensure a smooth transition there will be a “Quiet Period” from December 12, 2011 to January 13, 2012

Employees will not be able to make

contribution changes during this time

Contributions

Max

Min

Employee Employer Basic

EmployerSafe Harbor

Matching

EmployerMatching

EmployerTotal

Employer &

EmployeeTotal

0% 2% 0% 0% 2% 2%

1% 2% 1% 1% 4% 5%

2% 2% 2% 2% 6% 8%

3% 2% 3% 3% 8% 11%

4% 2% 4% 4% 10% 14%

100% Vested Immediately

3 yr Vesting 100% Vested Immediately

3 yr Vesting

Employees no longer need to be employed at end of the year to keep the employer contributions

Plan Comparison

EE Employer ContributionsER & EE

BasicSafe

HarborMatching

ER Total

Total

0% 2% 0% 0% 2% 2%

1% 2% 1% 1% 4% 5%

2% 2% 2% 2% 6% 8%

3% 2% 3% 3% 8% 11%

4% 2% 4% 4% 10% 14%

3 yr Vesting

Immediate Vesting

3 yr Vesting

Employees DO NOT need to be employed until the end of the year (employed as of Dec 31) to keep NSU’s contribution for the current year

EE Employer Contributions ER & EE

Basic MatchingER Total

Total

0% 2% 0% 2% 2%

1% No additional Match

2% 2% 4% 6% 8%

3% No additional Match

4% 2% 8% 10% 14%

ImmediateVesting

3 yr Vesting

Employees need to be employed until the end of the year (employed as of Dec 31) to keep NSU’s contribution for the current year

403 (b) Plan 401 (k) Plan

Safe Harbor Plan Contributions

Voluntary employee contributions are still allowed (employee contributions above 4%)

The IRS limit for 2011 limit is $16,500 or $22,000 for employees age 50 and older

What Action Must Employees Take?

At this time, no action is required from employees

TIAA CREF and VALIC will use present plan elections and beneficiary designations to set up new employee accounts

What will Happen to my 403 (b)?

Your current 403 (b) account will stay as is You will continue to direct and make

changes to your investment Your account balance will grow as you earn

interest No new contributions will be made to the

403(b) plan after December 31, 2011

Can I roll-over my 403(b) account into my new Safe Harbor account?

Unfortunately, no. A roll-over is considered distribution and distributions can not be made while you are still employed

A distributable event occurs if you become disabled, retire, or separate from service

Where can I learn more?

WEBINARS

Friday, October 21

10 a.m. – 11 a.m.

3 p.m. – 4 p.m.

Instructions were sent out by email Monday, October 17

VISIT THE BENEFITS WEBSITE

http://www.nova.edu/cwis/hrd/benefits/

Meeting Schedule

Frequently Asked Questions

Where can I learn more?

CONTACT HR4U954-262-HR4U (4748)

HR4U@NOVA.EDU

Where can I learn more?

TIAA-CREFContact information

VALICContact information

For general plan information For general plan information

www.tiaa.cref.org/nsu https://my.valic.com/online

To speak with an Advisor call 1-800-842-2252

To speak with an Advisorcall 1-800-448-2542

To schedule a counseling sessionCall 1-800-732-8353

To schedule a counseling sessionTammy Kotaska, 954-494-0314

Steve Proffitt, 954-684-6306

Thank You

Office of Human Resources