ACC Money Purchase Plan
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 are exempt from contributing to the ACCMPP if they are:
- currently contributing to either the Teacher Retirement System of Texas (TRS) or Optional Retirement Program (ORP) through ACC or another higher education institution,
- retired or receiving retirement benefits from either TRS or ORP,
- a full-time ACC student enrolled in at least 6 credit hours for either the Fall or Spring semesters and works for the College, or
- a work study student of the college.
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.
When you permanently terminate employment with ACC, you may complete a Distribution Election form requesting a refund. Submit this form directly by mail, fax or email to the Plan Administrator (see below). 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%), along with any investment gain or loss, when you request a distribution. This is a taxable event in the year of withdrawal and may be subject to a 10% tax penalty if you are under the age of 59 ½.
If you have less than $5,000 and make no contributions to your account for eighteen (18) months, you are required to take a distribution of your account. If you do not request a distribution or rollover to another eligible retirement plan such as an IRA, your account will be automatically distributed as follows:
- Below $1,000 = taxable Lump-Sum, mailed to your last known address.
- Above $1,000 but below $5,000 = a direct rollover to an IRA at HAND Benefits & Trust Co.
- Above $5,000 = no involuntary distribution. You can leave your funds in the plan until you request a distribution, annuity or rollover at a later date or retirement.
Please note: If an account is suspended because you 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, if you are under age 59 1/2. To avoid an IRS penalty you may rollover your account to an IRA or eligible retirement plan. NOTE: Any distribution will have a taxable implication for the applicable tax year. You will receive a 1099R form which details the taxable portion of your refund.
If you have questions or need assistance regarding your ACCMPP account, please contact Merkley, Newman & McLaws, Inc. by email at: firstname.lastname@example.org or by calling 800-580-2176.
|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+ Superior by A.M. Best; AA- by Standard & Poors|
|Vesting Time:||1 hour|
|Employee Contribution:||6% (pre-tax dollars)|
|Interest Rate:||Will vary but recent history approximately 3%|
|Plan Administrator:||Merkley, Newman & McLaws, Incs.; 1.800.580.2176;|
|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
- 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 Transition issues Between Feb 15, 2002-May 15, 2002 including the Contact Agency in Austin, TX, and the transition back to the GIC if no choice is made.
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.
Merkley, Newman & McLaws, Inc. - Plan Administrator 800-580-2176
Access Individual Account Information for changes with SSN and birthday. Please change password upon initial entry.
- Fax: (480) 813-7791
Merkley Newman and McLaws, Inc.
PO Box 5028
Mesa, AZ 85211
- Email: email@example.com
- Telephone: 800-580-2176
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?
- Employees currently contributing to TRS or to an ORP.
- Employees receiving benefits from either TRS or ORP.
- Full-time ACC students (12 credit hours) who work for the College.
What if I am in a retirement program with a private company or the State of Texas through ERS? 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, you may complete a Distribution Election form requesting a refund. This form is available online and in the Benefits Department. Submit this form directly to the Merkley, Newman & McLaws, Inc. by email, 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. Contributions made before January 1, 2002 were made on an after-tax basis so, 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%), along with any investment gain or loss, 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 or rollover your account to another tax qualified plan such as an IRA. If you have an account balance of less than $5,000 and do not contribute for eighteen months, your account will be automatically distributed either as a lump sum payment sent to your last known address if you have less than $1,000 in your account, or as a rollover to an IRA account with HAND Benefits & Trust Co. If you have more than $5,000, you can leave your funds in the plan until you decide to request a distribution or annuity.
Where can I get more information about this plan? Please contact Merkley, Newman & McLaws Inc., the plan administrator by email at:firstname.lastname@example.org or phone at 800-580-2176 for assistance with the ACCMPP.