Retirement Plan Choice

60 Day Election Period

January 1, 2017 through March 1, 2017

Colorado School of Mines Agenda
1. Overview of Retirement Plan Changes
2. PERA
3. Mines Defined Contribution Plan (MDCP)
4. Employee Options
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Overview of Changes
Current Plan:
Colorado PERA
State Defined Benefit Plan
Future Plan:
Mines Defined Contribution Plan
*Most new Mines faculty starting
January 2017
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*New option for current employees
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60-Day Window
Current Employees must choose between staying
in PERA or enrolling in the new Mines Defined
Contribution Plan
60-day window Starts: January 1, 2017 Ends: March 1, 2017
May only change to new plan during this period
Irrevocable election
All faculty members must complete an election
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form
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PERA AND THE OPTIONAL
RETIREMENT PLAN (ORP)
COLORADO SCHOOL OF MINES

Two Choices
Defined
Defined
Benefit
Contribution

Who invests?
Defined
Defined
Contribution
Benefit
You

Who absorbs the risk?
Defined
Defined
Benefit
Contribution
You
Liquidity Risk
Longevity Risk

How long does it pay?
Defined
Defined
Contribution
Benefit
Lifetime monthly
Until the account
income
is depleted

How much do you
get at retirement?
Defined
Defined
Contribution
Benefit
• Age
• Length of investment
• Service credit
• Amount of investment
• Highest Average Salary
• Investments chosen
• Market returns

Are there
additional benefits?
Defined
Benefit
• Survivor
• Disability
• Annual Increase
eligibility
• PERACare

Are there fees?
Defined
Defined
Benefit
Contribution
Already included
Additional fees
in the Plan
apply

Is there access to
voluntary plans?
Defined
Defined
Contribution
Benefit

Will I have a Social
Security reduction?
Defined
Defined
Benefit
Contribution
Yes
Yes

Options
Choose to
Choose to
move to ORP
stay in
OR
while working
PERA
at School of
Mines
You have 60 days from January 1, 2017,
to make a one-time, irrevocable decision

If you move to a
Continue
non-ORP-
in
participating
PERA
PERA employer
Options if you choose PERA
If you move to
another ORP-
Continue
participating
in
institution
PERA

Options if you choose ORP
Freeze your PERA account until you
1 retire or begin to build again later
Transfer PERA account to ORP
* Only receive employee contributions
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and interest

If you move to
Continue
another ORP-
in
participating
ORP
institution
Options if you choose ORP
If you move to a
Continue
non-ORP-
or start a
participating
PERA
PERA employer
benefit

Working Retirees
If you begin working for an employer in a position covered by
an ORP on or after January 1, 2011, you are required to
choose PERA or the ORP as your retirement plan
PERA
ORP
Will you be subject to working
Yes
Yes
retiree limits?
Will your employer make
Yes
Yes
contributions?
Will you be making PERA’s
Yes
No
working retiree contributions?
Are you allowed to suspend
Yes
No
your retirement?

Get more information
Next Steps

Meet with an on-site PERA
Benefits Counselor

Visit www.copera.org

Call PERA at 720-213-7981
Return your completed
election form to Human
Resources by
March 1, 2017

COLORADO SCHOOL OF
MINES

Mines Defined Contribution Plan (MDCP)
What is the MDCP Plan?
Defined Contribution Plan for Mines employees in
which you and Mines contribute money into an
account every paycheck. Your account would
accumulate assets based on these contributions
plus any investment earnings or less any
investment losses
The account is available during retirement for the
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employee to withdrawal funds
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Mines Defined Contribution Plan
Contributions
8% employee pre-tax / 12% employer
Funds are credited to individual employee
accounts
The employee is responsible for investing the
account funds
Mines is offering multiple low cost no-load mutual
funds for employees to invest in
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Vesting
Once an employee is vested they are entitled to the
Mines employer contributions
Vesting period is 36 months
Employees with 36 months of Mines service who
chose the DC plan option will be considered
vested
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Considerations
Primary Advantages of a Defined Contribution Plan
Liquidity and flexibility for employees
Ease of portability if you change jobs
$
Primary Disadvantages of a Defined Contribution
Plan
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INVEST ING : PLANNING
No guaranteed retirement benefit
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Defined Contribution Plan Fees
Types of fees
Administrative fee - .26%
Plan maintenance and compliance
Employee Education
May reduced in the future based on plan
breakpoints
Fund management fees – vary by fund selected
Annual percentage that is calculated daily
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Fund returns are net of fund fees
No transactions or surrender fees upon retirement
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Investment Options
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MDCP Summary
Mines Defined Contribution Plan
Defined Contribution
20% Annual Contribution
8% EE, 12% ER
36 month vesting
More portability and liquidity
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Employee Options
1. Remain in the PERA Defined Benefit Plan
2. Enroll in MDCP Plan
1.
Keep Funds in PERA
2.
Move PERA funds to MDCP
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How to Enroll in MDCP Plan
1. Go to valic.com
2. At the bottom of the page click the ‘Not
Enrolled? Get Started’ link
3. Click ‘Enroll Now’
4. Enter Enrollment Code: 42465002
5. Follow the step-by-step instructions
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Enrolling in your workplace retirement plan
Future FIT®
Getting your financial future in shape

Digital portal for retirement plan
enrollment and planning

Provides financial guidance,
educational and financial tools
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VALIC Services
Easy to navigate website
Set-up your account online and make investment
selections and changes
Free investment decision tools
FutureFit interactive online financial planning
Fully-licensed, local advisor available to provide
personal service and/or financial planning
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Financial 360 Report
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Summary
60-day window is the only time you can elect
participation in the new MDCP
Window Starts: January 1, 2017 Ends: March 1, 2017
Financial advisors available throughout the
60-day period
PERA Representatives available for
appointment
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Time to take advantage of one-on-one
counseling available to help make an
informed decision
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What to do Next
Consider scheduling an appointment with an
advisor
An easy way to clearly understand your options
Improve your knowledge of retirement benefits
Consider having a financial analysis created
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THANK YOU

Document Outline