Defined Contribution Plan Detail

New State legislation signed into law in July 2013, effective September 13, 2013, created this plan for certain new non-eligible ASRS employees.  As a condition of your employment, you are required to participate in the Arizona State Defined Contribution Retirement System. 

Plan Requirements:

  • Employee contributions made pre-tax from payroll deduction
  • 8.27% Employer contribution rate
  • 8.27% Employee contribution rate
  • All Employee and Employer contributions are immediately vested.
  • Non-ERISA plan
  • Eligible employee plan enrollment is required, and contribution elections are irrevocable; except by State statute
  • Maximum annual contribution limit is $205,000 in 2013 from all contribution sources under the 414(h) employer pick up rules
  • No front-end, back-end, or early withdrawal charges or loads in the core funds

Plan Features:

  • Asset allocation funds
  • Mutual funds ;  representing recognized fund companies (e.g. Vanguard,  American Funds, JP Morgan, INVESCO, Dreyfus, Ivy, Lazard and PIMCO)
  • Allowable rollovers into the 401(a) Plan
  • May be used to purchase defined benefit plan service credits on a pre-tax basis
  • Allowable rollovers-out of the plan upon separation from service to qualified retirement plans
  • No annual administrative fee per participant
  • A low .20 to .30 basis point tiered asset fee charge on each investment option. Refer to the Investment Performance Report (IPR) for additional information
  • Underlying fund house expenses apply
  • Employees may change investment lineups with no transaction fees or penalties

Plan Payouts:

  • Loans not allowed
  • If participant not age 59 ½, a 10% early withdrawal penalty may apply
  • Distributions must begin no later than 70 ½ if separated from service
  • Payroll Notification
At least 30 calendar days prior to retirement employees are required to notify the Payroll Office.  Please contact the Payroll Office.

 

 

Human Resources Office
20 E. Main Street
Suite 130
Mesa, AZ 85201

Employment Verification
email Employment Verification
or call 480-644-5650 and leave a detailed message.
Response within 24 hours M-TH      7a.m. - 6 p.m.

New Hire Questions
Jackie Hale
480-644-4414
e-mail Jackie

Becky Jernigan
480-644-3393
e-mail Becky

Employee Benefits Office
20 E. Main Street
Suite 600
Mesa, AZ 85201
480-644-2299
Fax  480-644-4548
e-mail Benefits


Location Map

Office Hours:
Monday - Thursday
7:00 a.m. - 6:00 p.m.
Closed Fridays, weekends and holidays

 

SITE LINKS:

Link to Benefits website