Summary of Supplemental Retirement Plans

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Summary of Voluntary Supplemental Retirement Plans
403(b) and 457(b)

Anyone who receives a paycheck from Penn State is eligible to make tax-deferred contributions to both a 403(b) tax-deferred annuity plan and a 457(b) deferred compensation plan. Contributions to these plans are in addition to and separate from contributions that are made to your Penn State retirement plan.

You may begin making voluntary contributions to a supplemental retirement plan at any time during the year. You also may change or stop your voluntary contributions at any time.

To begin making contributions for the first time:

Determine if you will contribute to a 403(b) tax-deferred annuity, a 457(b) deferred compensation plan, or both
Determine with which company you want to invest
Complete an enrollment form for the investment company that you’ve chosen

TIAA-CREF Group Supplemental Retirement Annuity and TIAA-CREF Deferred Compensation applications are available for online enrollment
Vanguard and Fidelity enrollment forms are available from the Employee Benefits Division or from the companies
AIG VALIC and AXA Equitable have local agents who will complete the enrollment forms for you. Contact information for AIG VALIC and AXA Equitable can be found in the Company Profiles below

Complete a Voluntary Salary Reduction Agreement indicating the amount of your contribution from each pay

To change the amount of your contribution:

Complete a new Voluntary Salary Reduction Agreement indicating the amount of your new contribution from each pay

To change how your funds are invested:

Contact the company with whom you’re investing or make your changes online at your investment company’s web site
Complete a new enrollment form and Voluntary Salary Reduction Agreement if you’re changing to another of the approved investment companies

Five investment companies are authorized to provide 403(b) tax-deferred annuity plans to Penn State faculty and staff. The company profile links below provide general information about the company, including a list of available investments. Web page links provide access to the company’s general web site information.

WEB PAGES	COMPANY PROFILE
AXA Equitable	Equitable Profile
Fidelity Investments	Fidelity Profile
TIAA-CREF	TIAA-CREF Profile
AIG Retirement (VALIC)	Current information is not available from AIG; contact John Wolanski @ (800) 448-2542 ext 89263
Vanguard	Vanguard Profile

Provision	403(b) Tax-Deferred Annuity	457(b) Deferred Compensation
Investment Companies	AIG (VALIC) AXA Equitable Fidelity Investments TIAA-CREF Vanguard	AIG (VALIC) TIAA-CREF
Contribution Limits	Annual salary reduction contributions are limited to $16,500 in 2009	Annual salary reduction contributions are limited to $16,500 in 2009
Age 50 Catch-up Provision	If you are age 50 or older in 2009, you may contribute an additional $5,500 above the maximum annual deferral amount. This amount may be adjusted for inflation
Distributions	Distributions must meet a qualifying event: Separation from service Age 59½ Permanent and total disability Financial hardship - for example, a tuition payment, or to purchase primary residence Death of participant	Distribution must meet a qualifying event: Separation from service Retirement Unforeseeable emergency - for example, an unexpected illness or loss of property Death of participant
Rollovers	Rollovers are allowed if the guidelines of a qualifying event are met. Employer approval may be required.	Rollovers are allowed from a governmental plan if the guidelines of a qualifying event are met. Employer approval may be required.
Additional Catch-up Provision (Cannot be used with the Age 50 and Over Catch-up Provision)	"15 Year Rule": An additional amount up to $3,000 may be available if you have 15 years of service with a qualified organization and previous years' deferrals have averaged less than $5,000. (Not to exceed $15,000.)	"3 Year Rule": An additional amount up to $12,000* may be available if you have not deferred in previous years when you were eligible for a 457(b) Plan. This provision may be used only in the three years before you attain normal retirement age.
Loans	Loans are available to the extent provided by the annuity contract or custodial account.
Withdrawals While Employed at Penn State (Considered only when an employee has no other resources, including Plan Loans)	Withdrawals can be made any time after age 59½ or in the event of a Qualified Financial Hardship: Unreimbursed medical expenses, purchase of a primary residence, tuition expenses, funeral expenses, or prevention of a foreclosure or eviction.	Withdrawals can be made any time after age 70½ or in the event of unforeseen emergencies: unreimbursed medical expenses, casualty loss, sudden and unforeseeable emergency, funeral expenses, or prevention of a foreclosure or eviction.
Distributions	Distributions can be done any time after separation from state employment, financial hardship, death, at 59½, or at age 70½. You may roll over funds into other types of employer-sponsored plans, IRAs, or other eligible options. Penalty applies for withdrawals prior to age 59½.	Distributions can be done any time after separation from state employment, financial hardship, death, or at age 70½. You may roll over funds into other types of employer-sponsored plans, IRAs or other eligible options.