Frequently Asked Questions (FAQs) Regarding Supplemental Retirement Plans

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INTRODUCTION TO RETIREMENT MANAGER

1. What is Retirement Manager? 
2. How do I start using Retirement Manager?
3. What is my Employee Unique ID?
4. How do I open a 403(b) account and begin payroll contributions to that account?
5. How do I find contact information for my investment provider?
6. How often is account information updated?

 

CONTRIBUTION CHANGES

1. How do I change or stop current 403(b) contributions?
2. Where can I review my past and pending contribution changes?
3. How do I cancel a pending investment provider allocation or pending contribution change?
4. How do I direct my investments with my investment provider?

 

LOANS

1. How much can I borrow from my 403(b) plan account(s)?
2. May I have more than one loan?
3. What are the terms for repayment of a loan?
4. How are loans repaid?
5. What happens if a plan loan is not repaid according to its terms?
6. What can be done to remedy a default?
7. May I request another loan if I have a previous loan in default?
8. How do I request a loan?

 

HARDSHIP WITHDRAWALS

1. Under what circumstances can I take a hardship distribution?
2. What is the maximum amount that can be distributed as a hardship withdrawal?
3. What are the consequences of taking a hardship distribution?
4. How do I request a hardship withdrawal?
5. I have contributions in the Voluntary 403(b) Plan which are identified as Pre 1989 unrestricted assets. Do I have to use this balance before I can take a hardship distribution?
6. Do I have to take a loan from the plan before I can take a hardship distribution?

  

REDIRECTING FUNDS INSIDE THE PLAN  (IN-SERVICE EXCHANGES)

1. While I am employed, am I able to move my plan assets from one investment provider to another?
2. How do I request an in-service exchange?

 

DISTRIBUTIONS AFTER EMPLOYMENT ENDS

1. How do I request a distribution to another qualified plan after my employment ends?

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1. What is Retirement Manager? 

Retirement Manager is an employee self-service web based tool that supports Voluntary 403(b) Plan enrollment and payroll deduction contributions. You may establish, change, or stop payroll deduction contributions, and select the effective payroll date. You may also request loans, hardship withdrawals and redirect your investments. It also features financial planning information with easy-to-use financial calculators and tools to help you measure your retirement savings. 

 

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2. How do I start using Retirement Manager?

Visit https://www.myretirementmanager.com/?arizona. Select "I'm a New User” and then type "The University of Arizona". Complete the required fields to create a password. Review and agree to the Terms of Use by clicking on "I Agree".

 

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3. What is my ID?

Your ID is your University of Arizona EmplID.  Your EmplID can be found in UAccess Employee.  It is located on your timesheet and your paycheck. 

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4. How do I open a 403(b) account and begin payroll contributions to that account?

First, contact one of the three authorized investment providers and open account:

VALIC Retirement - Tony Puccio (520) 449-4955
Fidelity Investments - Damond Petersen (866) 588-2612; Scott Thomas (480) 263-1622
TIAA-CREF - Mark Largent (866) 548-3705, ext. 457749

After you have opened an account, you will establish payroll deductions in Retirement Manager by selecting "Start or Change My Contributions" from the menu. 

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5. How do I find contact information for my investment provider?

Select "My Investment Provider Contacts" from the menu. You may also refer to your account statement for contact information. 

 

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6. How often is account information updated?

Most investment providers report account balance information soon after the end of each month. This information is reflected in Retirement Manager. Contact your investment provider if your account balance information is not available on Retirement Manager. 

 

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CONTRIBUTION CHANGES

 

1.   How do I change or stop current 403(b) contributions?

In Retirement Manager, select the “Start or Change My Contributions” link. You will be able to select the effective pay date of the change. Contribution change transactions must be completed by 5:00 p.m. on non-pay week Wednesday to be effective the following payday.  Holidays during a pay period may change this deadline. 

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2. Where can I review my past and pending contribution changes?

Select the “Start or Change My Contributions" link from the menu. 

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3. How do I cancel a pending investment provider allocation or pending contribution change?

Select the "Start or Change My Contributions" link from the menu.  Deletions must be completed by 5:00 p.m. on non-pay week Wednesday to be effective the following payday.  Holidays during a pay period may change this deadline.

 

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4. How do I direct my investments with my investment provider?

To direct your investments, contact your investment provider. Some providers will allow you to adjust your investment fund allocations on their web sites.

 

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 LOANS

 

1. How much can I borrow from my 403(b) plan account(s)?

The minimum loan amount is $1,000. The maximum loan amount is 50% of your aggregated vested account balance, or $50,000, whichever is less.   For example, if you have a total account balance of $40,000, the maximum amount that you may borrow from the account(s) is $20,000.

 

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2. May I have more than one loan?

There is no restriction on the number of loans you may have outstanding. The total outstanding amount of all loans can not exceed the maximum stated above.

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3. What are the terms for repayment of a loan?

General purpose loans must be for a period of not less than 12 months nor more than five years. A loan for the purchase of a home must be for a period of not less than 12 months nor more than 15 years. A “Home Loan” is a loan used to purchase a dwelling unit which you will use as a principal residence within a reasonable time.

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4. How are loans repaid?

Loans are repaid by entering into an Automated Clearing House (ACH) debit agreement with your personal bank. You investment provider will assist you with setting this up.

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5. What happens if a plan loan is not repaid according to its terms?

The loan might be considered in default for non-payment, participant misrepresentation or a change in financial status such as bankruptcy.

 A default will be considered a “deemed distribution” which is a taxable event. Until the final disposition of the loan, you remain obligated for any unpaid principal and accrued interest. Consult the plan document or a tax advisor for specific information about your circumstances.

 

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6. What can be done to remedy a default?

 

If you fail to make payments on a plan loan, the missed payments can still be made even after a deemed distribution has occurred. Contact your investment provider for more information and a tax advisor for tax implications.  

 

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7. May I request another loan if I have a previous loan in default?

No. Once a loan is in default, you will not be able to take another loan until the defaulted loan is paid in full.

 

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8. How do I request a loan?

To determine if you are pre-qualified, you will need:

 

a)      The actual amount of the loan you will be requesting

b)      The most recent loan statement(s) for any loan(s) you may already have

c)      Your most recent investment provider statement(s)

 

In Retirement Manager, select the “Request a Loan" link and follow the steps to create a certificate.   If you are pre-qualified, print the certificate(s) and contact your investment provider(s) for further instruction.  The certificate does not require a signature from the Human Resources office.

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HARDSHIP WITHDRAWALS

 

1. Under what circumstances can I take a hardship distribution?

In accordance with the plan document and current federal law, a hardship withdrawal must meet certain standards. The hardship must be an immediate and heavy financial need, and the amount must be necessary to satisfy the financial need. Your financial need includes the need of your spouse, dependent, or non-spouse non-dependent beneficiary. 

 

Certain expenses are deemed to be immediate and heavy, including:

a)   certain medical expenses;

b)   costs relating to the purchase of a principal residence;

c)   tuition and related educational fees and expenses;

d)   payments necessary to prevent eviction from, or foreclosure on, a principal   residence;

e)   burial or funeral expenses; and

f)    certain expenses for the repair of damage to the employee's principal residence.

 

A financial need may be immediate and heavy even if it was reasonably foreseeable or voluntarily incurred.

 

A distribution is deemed necessary to satisfy an immediate and heavy financial need if you have obtained all other currently available distributions and loans under your employer’s plan(s).

 

Consult the plan document or your investment provider for more information.

 

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2. What is the maximum amount that can be distributed as a hardship withdrawal?

The amount available for a hardship withdrawal cannot be more than the amount of your total elective contributions, including designated Roth contributions, as of the date of distribution, reduced by the amount of previous distributions. This "maximum distributable amount" generally does not include earnings.  If there is a loss on the account and the total account balance is less than the total elective contributions, the maximum distributable amount would equal the total account balance.

 

A hardship distribution may not exceed the amount of your need. However, the amount required to satisfy the financial need may include amounts necessary to pay any taxes or penalties that may result from the distribution.

3. What are the consequences of taking a hardship distribution?

Hardship distributions are includible in gross income except for designated Roth contributions. They may be subject to an additional tax on early distributions. Unlike loans, hardship distributions are not repaid to the plan and permanently reduce your account balance under the plan.

 

If you receive a hardship distribution, you will be unable to contribute to the 403(b) plan for 6 months.

 

A hardship distribution cannot be rolled over into an IRA or another qualified plan.

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4. How do I request a hardship withdrawal?

To determine if you are pre-qualified, you will need the following:

 

a)      The actual amount of the immediate financial need

b)      The reason for the distribution

c)      Documentation of all hardship withdrawal transactions you have taken in the past 12 months

d)     Your most recent investment provider statement(s)

 

In Retirement Manager, select the “Request a Withdrawal" link from the menu and provide the requested information. If you are pre-qualified, print the certificate(s) contact your investment provider(s) for further instructions. If your investment provider is not listed on the drop down menu, contact the provider directly for more information.  The certificate does not require a signature from the Human Resources office.

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5. I have contributions in the Voluntary 403(b) Plan which are identified as Pre 1989 unrestricted assets. Do I have to use this balance before I can take a hardship distribution?

Yes, you must withdrawal all unrestricted Pre 1989 assets before taking a hardship distribution. Pre 1989 unrestricted assets are contributions or earnings made prior to 1/1/1989.
 

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6. Do I have to take a loan from the plan before I can take a hardship distribution?

Prior to requesting a hardship distribution, you must first attempt to satisfy your financial need by other resources that are reasonably available to you, including any loans where repayment would not create a financial hardship.

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REDIRECTING FUNDS INSIDE THE PLAN

(IN-SERVICE EXCHANGES)

 

1. While I am employed, am I able to move my plan assets from one investment provider to another?

Re-directing assets from one provider to an authorized provider is an “In-Service Exchange”. The investment provider receiving the in-service exchange must be one of the following authorized investment providers:

VALIC Retirement

Fidelity Investments

TIAA-CREF

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2. How do I request an in-service exchange?

Contact the authorized investment provider (VALIC Retirement, Fidelity Investments, or TIAA-CREF) to open an account. Once you have opened an account, select the “Request a Withdrawal" link in Retirement Manager. You will need the following:

 

a)      The actual amount you wish to exchange

b)      The most recent provider statement(s)

 Provide the requested information and print the confirmation and certificate. Contact the investment provider to whom you are redirecting funds for further instructions.

 

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DISTRIBUTIONS AFTER EMPLOYMENT ENDS

 

 1. How do I request a distribution to another qualified plan after my employment ends?

In Retirement Manager, select the “Request a Withdrawal” link and select “Severance of Employment Certificate” to determine if you are pre-qualified. You will need the following:

a) The actual amount if you are taking a partial disbursement

b) Your most recent investment provider statement(s)

If you are pre-qualified, print the certificate(s) and have it signed by a representative from the Benefits Office:

Benefits Office

The University of Arizona

University Services Building, Room 114

P. O. Box 210158

Tucson, AZ 85721

Fax: 520-626-4749

Upon receipt of your signed certificate from the Benefits Office, contact your investment provider for further instructions.

Former employees will not have access to certificates for hardship distributions, loans, or in-service exchanges.