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713-463-3800
1-800-44VALIC
www.aigretirement.com
SBISD offers a Matched Savings Plan (MSP) to all benefit-eligible
employees. SBISD selected the AIG Retirement to administer
the plan. This plan is designed to encourage employees
to save on a tax-deferred basis to supplement other
sources of income including their Teacher Retirement
System (TRS) annuity and personal savings upon retirement.
Effective October 1, 2003, SBISD will deposit an amount
equal to 0.25% of your gross salary for that pay period
into your employer account with AIG Retirement. SBISD
will continue to make a deposit each pay period that
you participate in the 403b program. You are eligible
to receive the matching funds if you are deferring an
amount up to 0.50% of your salary to your 403b account
each pay period.
Please note: Your pay stub will not reflect
the amount that the district is contributing each pay
period to your Matched Savings account. Account balance
information can be obtained by contacting AIG Retirement
at 1-800-448-2542 or by logging on to www.aigretirement.com.
Outline of the Plan
- District matching contributions to the plan will
be made semi-monthly.
- An employee will always be 100% vested in his own
contributions.
- Employees who have already worked for the district
for more than 5 years will automatically be 100% vested
with the district's contribution. The vesting schedule
is as follows:
|
Years of Service
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Vesting Percentage
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Less than 3
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0%
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3
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50%
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4
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75%
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5
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100%
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- Loans will be available from vested employer contributions.
- If you terminate your employment with the district
you may take your contributions in the form of:
- Annuity/installment payments
- Direct rollover to an IRA
- Partial withdrawals
- Lump sum payments
You may select either fixed or variable accounts for
you investments. AIG Retirement currently has over 64
variable options from which to choose.
Since both employer and employee contributions grow
tax deferred, you can defer income taxes on interest
and earning generated by the contributions. You will
pay taxes upon withdrawal or when annuity payments begin,
usually upon retirement or separated from service. Federal
tax penalties may apply on withdrawals prior to age
59 ½.
The plan year will be effective October 1, 2003. Thereafter,
employees may enroll in the plan effective the first
pay period of any month. You may stop your contribution
at any time, but you will no longer receive the matching
contributions from the district.
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