Kaufman ISD

Please select your plan from the tabs below for more information about your plan and to gain access to your plan forms. If you have any questions or need assistance please contact us.

A 401(a) is a retirement savings plan that allows accumulation of tax-advantaged funds for retirement with contributions coming from the employer, the employee or both. Employers may match a fixed percentage of employee contributions or contribute without a required employee contribution. Since this plan type is often used as an incentive, vesting schedules for funds are often associated with it.
Login Register

Need Assistance? Click Here!

Plan Description
Forms
Resources
FAQ's

What is the TERRP plan?

In September 2001, Education Service Center Region 10 established the Teacher/Employee Recruitment and Retention Program (“TERRP”) for employer educational organizations in Texas. This plan is a part of the Retirement Asset Management Services (RAMS) program.  This supplementary retirement program is designed to:

Encourage employees to increase their retirement savings.
Reward employees for helping improve employer attendance and student performance.
Provide financial incentives to encourage employees to stay with the organization employer.
Encourage achievement of other organization goals.

How does the TERRP plan work?

An employer will make contributions on the employees’ behalf to a TERRP account established for each participating employee. The ’employer’s contributions to an employee’s account are based on a certain formula. This may include a match of the employee’s own contributions to the employer’s 457 or 403(b) plan (“Tax-Deferred Annuity Plan”). The employer’s plan can also be established with a formula that offers employer contributions based on attendance, school site, student performance and other criteria established by the employer within the design features available.

Is there an enrollment process?

Participants are automatically enrolled in the TERRP program if they meet the eligibility criteria in the plan. No individual enrollment paperwork is necessary.

How much does an employer contribute to an employee’s account?

Contribution rates and formulas vary with each employer. TERRP allows employers to make a direct contribution on either a fixed dollar or a percentage of salary basis. It allows for match contributions of employee voluntary contributions to 457 or 403(b) plans based on a dollar ratio basis or as a percentage. Additional contributions may be made to certain plan participants if they meet other plan requirements.

Who is eligible for a match contribution?

An employee is only eligible for a “match” contribution from the employer if the employee contributes to a 457 and/or a 403(b) plan. Not all Employers, however, offer a match. Check the Employer’s Summary Plan Description (SPD) to see if a match is offered. If a match is offered, the SPD will provide information on eligibility to participate and the matching formula.

Can an employee make voluntary contributions to the TERRP plan?

No, only employer contributions are permitted to TERRP.

How are contributions invested?

Educational Service Center Region 10 has appointed an Investment Advisory Committee to make investment decisions. The Investment Advisory Committee will utilize professional investment advisory services from TCG Advisors, LP in managing Trust assets.

What are TERRP benefits?

TERRP is a “defined contribution” plan or an “individual account plan” that provides for an individual account for each participant and benefits are based solely on the amount contributed to a participant’s account plus any investment earnings (and may include forfeitures of accounts of other non-vested participants).

When does an employee become eligible to receive the account balance?

An employee is eligible to receive his/her vested account balance upon separation from employment with the employer due to voluntary or involuntary termination, retirement, death or disability.

What is a vested account balance?

Vesting is an employee’s right to receive a benefit upon termination from service. It refers to the percent ownership an employee has of his/her account balance should the employee separate from the employer as of today’s date and is tied the his/her years of service with that employer.  100% vesting means the employee is entitled to the full account balance upon termination.  Employers have different vesting schedules adopted under their plan rules; refer to the SPD on the RAMS website for greater detail on the specific plan.

How can a participant find out what his/her account balance is?

Participants will receive periodic statements. Employees can also call a toll-free number for account information or access the Region 10 RAMS website to view their account balance. 

How does an employee receive an account balance once eligible to receive a distribution from the plan?

For the TERRP administrator to begin processing the distribution of an employee’s account balance, an authorization from the employer to distribute the account balance will be needed.  Employers can authorize the administrator to automatically process distributions when notification of the employee’s separation from employment occurs.

What are the distribution options?

An eligible participant may receive a lump sum distribution, transfer the account balance to another tax-qualified plan, or roll it over into an Individual Retirement Account (IRA).

How can a participant defer taxation on distributions?

A lump sum distribution of an account will be subject to taxation, including excise taxes with termination of employment prior to the age of 59½ or retirement prior to age 55. A participant can defer taxation by rolling over the distribution into an IRA or transferring it to another tax-deferred retirement plan.

How can a participant designate or change a beneficiary?

If the participant is married and designating the spouse as beneficiary or single, the participant may go online to the Region 10 RAMS website to designate his/her beneficiary. Otherwise, the participant will need to complete a TERRP Designation of Beneficiary Form, available by calling the toll-free TERRP phone number. If no beneficiary is designated, the participant’s spouse will be the automatic beneficiary if the participant is married and the participant’s estate if he or she is not married. Contingent beneficiaries may be designated online also.

How can I find out more information about TERRP?

For more information on TERRP, you may contact the TERRP Third Party Administrator, TCG Administrators, toll-free at: (800) 943-9179 or email at: 401a@tcgservices.com. 

A 457 is a retirement savings plan that allows employees to make contributions on a pretax basis, thus income taxes are deferred until your assets are withdrawn. Most plans allow you to start, stop, increase or decrease contributions at any time. The contribution limits are separate from those of 401(k) and 403(b) plans allowing additional employee savings. There is also no 10% early withdrawal tax applicable to distributions from a 457(b) plan.
Login Register

Need Assistance? Click Here!

Plan Description
Forms
Resources
FAQ's

Who is eligible?

Eligibility is determined by your Employer, so please contact TCG Administrators or your Employer Benefits Office to find out who is eligible under your Employer’s Plan. You may also find a list of who is eligible on the Summary Plan Description, which may be found on our website.

What is the ESC Region 10 457(b) Retirement Savings Plan?

This plan is a part of the Retirement Asset Management Services (RAMS) program.  The ESC Region 10 Cooperative is a 457 Deferred Compensation Plan and is a tax-deferred supplemental retirement Plan sponsored by your participating Employer. The Plan is authorized by the Internal Revenue Code (IRC) Section 457(b) and is subject to specific Internal Revenue Service laws and requirements. The Plan allows employees to voluntarily contribute a portion of their compensation on a pretax basis. The amount invested plus earnings is not taxable until withdrawn from the Plan.  The Plan also offers Roth contributions, if allowed by the Employer.  Roth contributions are taxed when made, but earnings grow tax free.

How is the ESC Region 10 457(b) Retirement Savings Plan provided to participants?

ESC Region 10 and your participating Employer contracted with TCG Administrators, TCG Advisors, LP (a subsidiary of TCG Group Holdings) and Wilmington Trust to provide administrative, investment and communication services to participants. TCG Administrators is the main contact for participants. You can find out how to contact TCG Administrators by choosing “Contact Us” from the menu on the Region 10 RAMS website.

How does the Plan work?

You elect the amount you wish to defer from your gross salary each pay period. The amount you elect to defer is withheld from your paycheck each pay period before taxes (after tax for Roth contributions).

Who contributes?

You. There are no Employer contributions under this Plan.

How do I enroll?

You may join the Plan at any time by clicking the green ‘Login’ button and clicking ‘Register’ You will need your Social Security Number and the plan password provided on the Summary Plan Description for your Employer. The Summary Plan Description can be found in the plan description for your employer.  You can browse there by clicking the green  ‘Login’  button, and choosing your employer. 

What is the contribution amount?

You decide the amount that you want to contribute. Please keep in mind that there are limits imposed under the Internal Revenue Code. The maximum amount you can contribute during each calendar year is up to 100% of your includable compensation or the maximum listed in the table below, whichever is less.

Maximum Yearly Contribution
Year Maximum
2015 $18,000

(This is indexed based on calculations done by the IRS each year so always check the Region 10 RAMS website for the current limit)

 

During one of the three calendar years prior to your Normal Retirement Age* you may utilize the Standard Catch-up provision by making additional contributions to the Plan of up to twice the regular deferral limit.

Maximum Yearly Contribution
Year Maximum
2015 $25,000

(This is indexed based on calculations done by the IRS each year so always check the Region 10 RAMS website for the current limit)

If you are age 50 or older in a Plan year, you may utilize the Age 50+ Catch-up provision by making additional contributions to the Plan. During any year in which you are utilizing the Standard Catch-up provision you may not utilize the Age 50+ Catch-up provision. The additional contribution amounts are listed in the table below:

Maximum Yearly Contribution
Year Maximum
2015 $24,000

(This is indexed based on calculations done by the IRS each year so always check the Region 10 RAMS website for the current limit)

Before utilizing the Standard Catch-up and Age 50+ Catch-up, please consult your tax advisor.

 

*The term “Normal Retirement Age” shall mean the range of ages from the earliest age at which the Participant has the right to retire and receive an unreduced retirement benefit under the Teacher Retirement System of Texas (TRS), without actuarial or similar reduction because of retirement through and including age 70½, as designated by the Participant. Any Participant who works beyond age 70½ may designate a Normal Retirement Age greater than 70½, provided, however, that Normal Retirement Age may not be later than the date or age at which the Participant terminates employment with the Employer.

How are my Plan contributions invested?

You will have full access to your account upon enrollment. You may choose your preferred allocation at the time of enrollment. A selection of risk based portfolios are available at no extra cost. If you do not make an election, your contributions will be invested in the Signature Portfolio.  To view the most recent investment option information as well as the Signature Portfolio you can view the most recent Quarterly Review from the Plan Description section for 457(b) and your employer on our website.

What are my investment option choices?

To view the most recent investment option information you can view the most recent Quarterly Review from the Plan Description section for 457(b) and your employer on our website.   The Plan offers risk-based portfolios ranging from Capital Preservation to Aggressive Growth that are managed by the investment advisor to the Plan, TCG Advisors, LP.  You may also create your own investment allocation among the fund choices in the Plan.

If you are managing your own account, you may select which funds to use. There are additional tools online to assist you in determining the appropriate investments and allocations at www.tcgservices.com.

How do I make investment option changes?

If you are making your investments for the first time, you can enroll in the Plan at any time by clicking the green ‘Login’ button and clicking ‘Register’ You will need your Social Security Number and the plan password provided on the Summary Plan Description for your Employer. The Summary Plan Description can be found in the plan description for your employer.  You can browse there by clicking the green  ‘Login’  button, and choosing your employer.    If you have already enrolled, you can make future changes online by logging in through www.region10rams.org and accessing your account by clicking the green ‘Login’ button.  

The following transactions can be made online:  

  • Move all or a portion of your existing balances between investment options. 
  • Change how your future contributions are invested.  

How do I keep track of my account?

You can check your account balance on the website at www.region10rams.org or you may call TCG Administrators toll free at 800-943-9179.

Are there fees to the participants in the Plan?

TCG Advisors, LP has been hired by ESC Region 10 as the investment advisor and fiduciary to the Plan and receives an advisory fee of .40% of account assets annually. TCG Administrators is the Third Party Administrator and handles the ongoing administration of the Plan for annual fees equal to $18.50 per year and .25% of account assets. These asset-based fees are subject to a sliding scale and can be adjusted downward as the assets grow.

An additional one-time charge of $30 is paid for any distribution and a one-time charge of $50 is paid for any loan processed from the Plan.

When can I withdraw money from my account?

  • Attainment of age 70½
  • Death
  • Termination of Employment

What are my distribution options?

  • Receive a lump-sum distribution (subject to ordinary income tax)
  • Rollover your account balance
  • Leave in the Plan until a future date (but no later than age 70½ or retirement)

What happens if I leave employment? When am I required to withdraw my money?

The Internal Revenue Code allows distribution of funds only upon retirement, termination of service with the participating Employer, or attainment of age 70½. At the time you terminate service you may:

  • Keep your money invested in the Plan and if desired, continue to manage your money within the offered investment options;
  • Withdraw your money — subject to ordinary income tax; or
  • Roll your money to an IRA or another eligible employer that accepts rollovers.

What if I need some of the funds while still working for my employer?

The Internal Revenue Code and the Plan contain three provisions that allow withdrawal of funds while still employed. These three provisions are limited and have strict requirements, which must first be met. They are:

  • An unforeseen emergency which must be documented, meet the Internal Revenue Code definitions and criteria, and be approved by the Plan Administrator.
  • A “de minimis” withdrawal — this provision allows a withdrawal while employed if your balance is $5,000 or less, you have not deferred for the last 24 months, and have never used this provision before.
  • Attainment of age 70½, but you must stop your deferrals.

What happens to my money when I die?

Your designated beneficiary(ies) will receive the full value of your account. Your beneficiary(ies) must contact TCG Administrators to apply for a distribution.  If you do not designate a beneficiary, your spouse will automatically be your beneficiary, and if you are not married, the beneficiary will be your estate.

Are loans available under the Plan?

Yes, loans are available. The minimum loan amount under the Plan is $1,000 and the maximum loan amount is 50% of your account value. Participants with account values less than $2,000 are not eligible for loans. For further information on loans, please contact TCG Administrators at 800-943-9179.

How can I change my salary reduction?

You can change your salary reduction online at any time by logging on to your account.

How can I stop my salary reduction?

You can stop your salary deferrals online at any time by logging on to your account.

You may begin contributing again to the Plan online at any time by logging on to your account.

How can I get more information?

To get more information about the Plan or enrolling in the Plan, please contact TCG Administrators at 800-943-9179, or visit the other areas of this website.