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401(a) Money Purchase Pension Plan
What is a 401(a) plan?A 401(a) plan is a retirement plan set up by an employer (AURA) that meets the qualification requirements of IRC Section 401(a). In this Money Purchase Pension Plan AURA:
When may I participate in the plan?All regular full-time and part-time employees who are scheduled to work at least 20 hours per week are eligible to participate in the plan after one year of service and completion of at least 1,000 or more hours worked during the preceding year. Employees entering service within three months of participation in another qualified employer retirement plan may qualify for earlier participation if they are not currently receiving benefits from the other plan. When am I fully vested in the plan?Effective January 1, 2002, all participating NOAO employees are immediately vested (100%) in the plan. May I make contributions to the plan?No. The 401(a) plan in funded entirely by employer contributions. How many funds are available?There are currently two funds, Teachers Insurance and Annuity Association College Retirement Equities Fund (TIAA-CREF) and Fidelity Investments. Upon determining your company of choice, you may choose any number of available funds from within that company. You cannot contribute to both TIAA-CREF and Fidelity. May I withdraw a portion of my money early?As long as you are employed with AURA, you are not eligible to withdraw your money early. You may withdraw, transfer, or roll over your money if you terminate or retire. What is the penalty for early withdrawal?You are subject to a 10% penalty if you withdraw your money before age 59½ (except under certain circumstances when retiring at age 55 and above.) When may I withdraw my money with no penalty?You may begin withdrawing money without penalty at age 59½ (except as defined above) but are subject to taxes. I am married. Can I name my children or others as beneficiaries?Rules under Employee Retirement Income Security Act (ERISA) of 1974 require that your spouse be named for at least 50% unless he or she signs a waiver of consent. May I combine my other retirement account from a previous employer with my AURA account?The plan does allow rollovers from qualified plans; however, the plan administrator must approve the rollover. You can contact your investment company to find out the compatibility between the plans. Both TIAA-CREF and Fidelity maintain customer service centers that can be accessed toll-free, and Web sites where you could obtain information. Is there a plan document that I can review?The plan document is available for inspection in the Human Resources office. How can I find out how much has been contributed on my behalf?You will receive a quarterly statement from the company that you set up your account with. You may also access this information on the respective companies web site once you establish a Pin. Please review your statement for accuracy.
Can I change my investment allocation at any time?You can change your investment allocation choices within the same company to any that are available through the AURA plan. May I switch from one investment company to another?Yes, You may stop your investments in one company and invest in the other. What happens to my account when I terminate?You may leave it in your 401(a) plan until decide what you want to do with it. If you decide to withdraw it and take it in cash, you may be subject to a 10% penalty and a 20% tax-withholding requirement. The only way to protect your full investment and the accrued interest is to move your funds into a direct roll over account. By doing this, you will not be subject to any taxes or penalty at that time. You should consult with a qualified tax advisor before purchasing any other investment for your retirement time. What should I consider when I retire?As you near retirement, you will need to consider your immediate and long-term financial needs. How do I contact the customer service department for my plan?
Who can I contact if I have further questions?
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