Human Resources - Benefits

Since Austin Community College does not participate in Social Security, the College was required by the Omnibus Revenue Reconciliation Act of 1990 (commonly referred to as OBRA) to enroll all employees in a qualified retirement plan effective January 1, 1992. To comply with the law, ACC implemented the ACC Money Purchase Plan (ACCMPP). This retirement plan will provide you or your beneficiary with a fully vested cash settlement or an annuity income when you decide to permanently terminate employment with the College.

Employees currently contributing to, or receiving benefits from, TRS, ORP or qualify as a full-time ACC student (12 credit hours) and who work for the College are exempt from contributing to the ACCMPP. TRS participants in any other institution are qualified to have retirement funds placed into TRS as long as they are qualified.

If you are in another retirement program with a private company or retired from the State of Texas (ERS), you are still required to be in the ACCMPP.

Refunds

When you permanently terminate employment with ACC, complete a Distribution Election form requesting a refund. Submit this form directly by mail or fax to the Third Party Administrator. Refunds are made ninety (90) days after the close of the month in which you receive your final paycheck, or later at the participant’s direction. You will receive the College’s contribution (1.5%) and your contributions (6.0%) when you request a distribution causing a taxable consequence in the year of withdrawal.

If you have less than $1,000 and no contributions to your account for eighteen (18) months, you are required to take a distribution of your account. You will be sent a lump sum distribution to your last known address.

If you have less than $5,000, you must request a lump sum distribution or rollover to an eligible retirement plan.

If you have more than $5,000, you can leave your funds in the plan until you request a distribution or rollover at a later date or retirement.

Please note: If an account is suspended because the employee cannot be located and no contributions are made after two years, the account will cease earning interest. A 10% penalty upon withdrawal will apply to some or all of your distributions. To avoid an IRS penalty you may do a rollover to an IRA or eligible retirement plan. NOTE: Any distribution or roll-over will have a taxable implication for the applicable tax year. You will receive a 1099R form which details the taxable portion of your refund

Call the Office of Human Resources at 223-7800 for information. This document summary is available online and in the Office of Human Resources.

Highlights of ACC Money Purchase Plan

 

Statutory Basis: Omnibus Budget Reconciliation Act 1990
Type of Plan: 401(a)
Type of Investment: Group Fixed Annuity / Mutual Funds (8)
Annuity Company: Ohio National Life Insurance Company
Rating: A+ by A.M. Best; AA by Standard & Poors
Vesting Time: 1 hour
Employee Contribution: 6% (pre-tax dollars)
Employer Contribution: 1.5%
Interest Rate: Will vary.  Historically 4-5%
Plan Administrator: Merkley, Newman & McLaws, Incs.; 1.800.580.2176; http://www.mnmpensions.com/
Refund Date: 90 days after the close of the month in which you receive your final paycheck or later at the participants directions.

 

Streaming Video Informational Presentations

(Visit http://irt.austincc.edu/streaming/players/downloadReal.html for assistance with viewing the videos.)

  • Video 1: Introduction to ACCMPP including Investment issues with Retirement
  • Video 2: Discussion of the 8 Mutual Funds in a generalized manner including the Guaranteed Investment Fund (GIC) within the ACCMPP, the Risks involved by Self Management, Self selection issues, etc.
  • Video 3: Conclusion on the Transistion issues Between Feb 15, 2002-May 15, 2002 including the Contact Agency in Austin, TX, and the transistion back to the GIC if no choice is made.

ACCMPP Forms

See HR Forms Page

Investment Advice
(Investment Brochures)

Local Agent (Austin, TX) 512-419-4111, Ext. 7
Please leave a voice mail message with Name, SSN and Telephone Number. Agent will return call in a timely manner.

Third Party Administrator (TPA)
(Investment Changes Only) 800-580-2176, Ext. 5

  • OnLine: www.mnmpensions.com
    Access Individual Account Information for changes with SSN and birthday. Please change password upon initial entry.
  • Fax: (480)813-7791
  • Forms:
    Merkley Newman and McLaws, Inc.
    PO Box 5028
    Mesa, AZ 85211
  • Telephone: (Least Preferred) 800-580-2176, Ext. 5

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Frequently Asked Questions

Who must participate in this plan? This plan is mandatory by Federal Law for ALL part-time or adjunct faculty and hourly employees except qualified full-time ACC students.

Who is exempt from contributing? 

  1. Employees currently contributing to TRS or to an ORP.
  2. Employees receiving benefits from either TRS or ORP.
  3. Full-time ACC students (12 credit hours) who work for the College. What if I am in another retirement program with a private company or the State of Texas? You are still required to be in ACCMPP.

If I quit, can I get my money back? Yes. If you permanently terminate employment with ACC, complete a Distribution Election form requesting a refund. This form is available online and in the Benefits Department. Submit this form directly to the Third Party Administrator by fax or mail.

When will I actually get the refund? Refunds are made 90 days after the close of the month in which you receive your final paycheck, or later at the participant's direction.

Is there a penalty for taking my money out of the plan before age 59 1/2? A 10% penalty tax may apply on some or all of your account balance upon distribution on employer contributions and interest earnings will apply. To avoid a penalty you may rollover your account to another qualified retirement account.

Will I owe taxes on the refund? You may have already paid taxes on part of your account. However, some or all of your account has not been taxed. Therefore at least part of the refund will be taxable income for the calendar year in which you receive your refund. You will receive a 1099R form which details the taxable portion of your refund.

What happens to the 1.5% the College contributed for me? You will receive the College's contribution (1.5%) and your contributions (6.0%) when you request a distribution.

Can I leave my money in the plan if I quit? If you have less than $5,000, you must request a lump sum distribution. If you have more than $5,000, you can leave your funds in the plan until you request a distribution.

Where can I get more information about this plan? Call the Office of Human Resources at 223-7800 and an ACCMPP document will be mailed to you.

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