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Employer Sponsored 403(b) Plan

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The Employer Sponsored 403(b) Plan is designed to provide a tax-advantaged savings vehicle to pay for retiree health care expenses. Other payments may be contributed to the Plan based on years of service, severance and other retirement incentives.

Benefits to the Employer
The Employer obtains the intangible benefits of providing a valuable new tax-deferral program to Employees. The Employer can attach vesting schedules for Participants to become eligible for the benefit. Further, the Employer permanently saves the 7.65% Social Security and Medicare tax on contributions (subject. to annual limits).

Benefits to the Employee
The contributions are deposited to the employee’s 403(b) account on a pre-tax basis. In addition, the employee permanently saves the 7.65% Social Security and Medicare tax on the contributions. Individual IRS limits on Section 403(b) or Section 457 contributions are typically not affected. A retiring Employee (or surviving spouse) can either take a partial or lump sum distribution, or roll their funds into an IRA or another Employer’s qualified plan, further delaying taxation. And, generally, no 10% penalty on the distribution applies if the Employee is over the age of 55 when he/she retires.

Administration
Simplicity of plan design reduces administrative costs. Plan documents, implementation materials, and plan administration are provided at a cost of $5.00 per Participant per quarter. This fee may be paid by the Employer or the Participant. Employer representatives have direct access to our administrative and management personnel.

Investment Vehicle
The funds are initially invested in a fixed annuity with a guaranteed minimum rate of return.

Depending on elections made by the Plan Sponsor, Participants may have the opportunity to diversify their holdings into other investment options.

Employee Communications/Account Information
Employee needs are serviced by a national service center through a toll-free number. Quarterly statements are provided. Employees also have access to their personal account information over the Internet. Financial planners are available to provide investment support.