Voluntary Retirement Programs:  Tax Sheltered Annuity 403(b); Deferred Compensation 457 Program

You will need to make decisions regarding the withdrawal of your retirement funds. These are important decisions that impact the level of income you will receive, the taxability of that income, and how long that income will last. For detailed information on the taxability, contact your investment carrier(s), a professional financial planner or tax advisor.

• You are responsible for selecting your retirement payment option. Contact your investment carrier(s) for distribution forms.

• You do not have to annuitize your accumulations even if your funds are invested with one of the annuity investment carriers, AIG Retirement or TIAA-CREF.

• To obtain more specific information regarding your choices, please contact your investment carrier(s). Telephone numbers and web address are listed in the Helpful Telephone Numbers section at the end of the Retirement Planning Guide.

• You have to be retired on our payroll system in order to take a distribution from your retirement plan. All distribution requests will require a Plan Administrators signature which can be obtained by contacting the Benefits Manager at (775) 784-6844.
  
  

Payment Options

The following highlights some of the many options you have available:

Systematic withdrawals: This payment option allows for flexibility in the amount and/or frequency of payments. You may change the amount or stop the withdrawal at any time.

• Systematic withdrawals may be appropriate if you are waiting for other income to begin (such as Social Security or an employer pension), or if you want to offset an income loss or reduction (such as transitioning into retirement by reducing your work schedule).

• Generally, systematic withdrawals are taxable as ordinary income.

• Specific funds may have restrictions that do not allow for systematic withdrawals. You will need to contact your investment carrier for further information.
  

Lump Sum Payments: Generally, full or partial withdrawals of account values may be requested at any time. Specific funds may have restrictions that do not permit full withdrawals.

 

Annuities: An annuity can provide steady income that is guaranteed for your lifetime, regardless of how long you live. Once you have selected this option, you will not be able to change your election or the amount of the payment. Annuity payments may or may not keep up with inflation. There are two basic types of annuities:

• Fixed Income Annuity-The company providing the annuity makes long term investments and the monthly income is guaranteed at a pre-set rate. For example, you receive the same benefit for life.
• Variable Income Annuity-This type of annuity is based upon a variety of investment options such as stocks, bonds, and money markets. Market fluctuations will affect the income payments under a variable annuity and the resulting payment could decrease or increase.

Within these two types of annuities, you can choose from a variety of annuity income options, including, but not limited to:

• Single Life-The income is paid only during your lifetime. Upon death, payment ceases.
• Joint and Survivor-Provides two people with income for as long as either one lives.
• Guaranteed Period-An annuity that provides guaranteed income for a fixed period of years. Should you die before the period is complete, benefits will continue to your beneficiaries for the remainder of the period.

If you would like an annuity distribution to be made, arrangements must be made with your investment carrier(s). Once you have selected an annuity payment option and have signed and submitted the paperwork, your decision is irrevocable.