Elected officials are ineligible.
The SACT-Tax-Sheltered Plan allows
contributions in whole percentages beginning at one percent of
your compensation (base salary minus pension contribution). The
maximum contribution allowable is the prevailing IRS maximum for
all 403(b) plans ($16,500 in 2010). Your contributions are excluded
from your income for federal income tax purposes.
If an employee wishes to participate
in this plan, a Enrollment
Request Form and Salary
Reduction Agreement must be completed. The employer
certifies the application and sends it to the Division of Pensions
and Benefits. Enrollment applications are processed quarterly
and must be received by the Division of Pensions and Benefits,
SACT Section, no less than 30 days before the beginning of any
Once an enrollment has been processed,
the employer will receive confirmation copies and certifications
of payroll deductions. A member's enrollment will become effective
at the start of the next calendar quarter.
Each enrolling participant is also
asked to nominate primary and contingent beneficiaries.
or Suspension of Salary Reduction
A member may change or suspend the
elected percentage rate of salary reduction before the beginning
of any calendar quarter.
All changes (increase or decrease)
in percentage rate of salary reduction must be made on a "Change
of Contribution Rate Request Form", accompanied by a
new "Salary Reduction
The maximum dollar amount that members
are permitted to contribute annually in 2010
is $16,500. This is in accordance with federal Internal Revenue
Code. Salary reductions are made through payroll deductions.
The member completes the forms and
has them certified by the authorized personnel representative.
The forms must be received by the Division of Pensions and Benefits,
SACT Section, 30 days before the beginning of the calendar quarter.
Once changes have been processed,
the employer will receive confirmation copies of the updated certification
of payroll deductions.
All requests become effective at
the start of the next calendar quarter.
Termination of Employment
If a member terminates employment
and withdraws all contributions from the basic retirement system,
the member must also withdraw all monies in the SACT Trust account
as a lump-sum settlement.
If a member has a SACT-TSA account,
it is eligible for tax-free rollover to an IRA.
The withdrawal value of the account
is determined as of the close of the month in which the employee
ceases to be a member of the basic retirement system. That
is, the month the member's withdrawal check from the basic system
FILING A WITHDRAWAL APPLICATION
WITH THE BASIC RETIREMENT SYSTEM WILL NOT ALSO WITHDRAW A MEMBER'S
TRUST ACCOUNT. THERE IS A DIFFERENT AND SEPARATE FORM FOR THE
To withdraw from the Trust,
the member must file a "Application
for Withdrawal" with the Division of Pensions and
Benefits, SACT Section.
The member should tell the designated
beneficiary or family to notify the Division of Pensions and Benefits,
SACT Section immediately upon their death.
Any time there is a change in family
status (marriage, divorce, death, birth, etc.) a member should
complete a new Designation
of Beneficiary form to reflect those changes for any
death benefits that may be payable. Once received at the
Division of Pensions and Benefits, properly completed beneficiary
designations supersede all prior designations in the member's
NOTE: If a member has
completed a Designation of Beneficiary form for the "basic
retirement system " (PERS, TPAF, etc.), a form specific to
SACT must also be completed. If one is not completed for
an existing SACT account, recent changes in family status will
NOT be reflected in payment of SACT death benefits.
If a member dies before retirement,
the named beneficiary(ies) will receive a lump-sum payment equal
to the value of the account at the time of death or, if the beneficiary
is a person (as opposed to an institution or charity), he or she
may elect to receive a variable annuity under one of the distribution
options of the plan.
If a member's named beneficiary does
not apply for benefits within 90 days of notifying the Division
of Pensions and Benefits of the member's death, the account is
placed in suspense. For questions concerning an account in suspense,
call the SACT office at (609) 633-2031.