Supplemental Retirement Plan
Prince William County Public Schools (PWCS) employees may contribute a portion of their compensation to save for retirement by participating in the PWCS Supplemental Retirement Plan (SRP). There are three plans offered: 403(b), Roth 403(b), and 457(b) plans (PDF)
- The 403(b) and 457(b) are both pre-tax plans and earnings are tax-deferred. This means not only will employees who participate be saving for retirement but will also be paying less in taxes.
- The Roth 403(b) plan is an after-tax contribution, but earnings grow tax-free. Contributions are taxed at the time of investment but are not taxed when the funds are withdrawn at retirement.
The contribution(s) made to the 403(b), Roth 403(b), and 457(b) plans are payroll deducted and sent to the approved PWCS retirement investment company, Lincoln Financial Group (Lincoln), every pay period. Lincoln offers investment products that combine the consistent returns of a stable value investment option and the benefits of mutual funds.
IRS Limits
The maximum amount of compensation an employee can contribute in any given year is limited to what the IRS will allow. To change your contributions to Lincoln Financial please visit the Lincoln Financial website or call 1-800-234-3500.
| Tax Year | 2023 | 2024 |
|---|---|---|
| Age 49 and Under | $22,500 | $23,000 |
| Age 50+ | Additional $7,500 (total $30,000) | Additional $7,500 (total $30,500) |
Secure Your Retirement Account: Prevent Unauthorized Access
Lincoln Financial has taken important measures to increase security on account logins. Cybercriminals are becoming more technically sophisticated every day. If they are able to obtain your Social Security number and other personal information, they can steal your identity. As this type of information may have been released during the Equifax breach or any other breach, it is important you take steps to keep your retirement account secure and reduce the possibility of an unauthorized person registering your account and stealing your savings through loan or distribution requests.
For more information about what you can do to protect your accounts and your identity as well as what Lincoln is doing, visit the Lincoln Financial cybersecurity page.
Automatic Annual Acceleration Option for Lincoln Financial 403(b) Allocations
Are your saving enough for retirement? To help you prepare now for future financial security, Lincoln Financial is introducing a voluntary automatic increase feature to the 403(b) plan. If you elect this option, your deferral election will increase by 1% each July until you reach a 15% deferral rate. You can opt-out or change your deferral amount at any time. Visit the Lincoln Website, register/login, and follow the instructions make changes.
Matching Contributions
PWCS currently matches up to the first 2% of salary contributed to the 403(b) for all permanent full-time and part-time employees. The match percentage and dollar amount are determined annually. Starting July 1, 2010, PWCS matches up to the first 2% of salary that participants elect to defer to their 403(b) retirement account. The percentage match on that 2% is determined by years of service with PWCS per the schedule below. Participating employees receive a matching contribution after one year of service.
| Years of Service | Matching Percentage |
|---|---|
| Less than 1 | 0% |
| 1 but less than 3 | 15% |
| 3 but less than 5 | 25% |
| 5 but less than 10 | 50% |
| 10 but less than 15 | 75% |
| 15 years or more | 100% |
Eligibility
Employees are eligible to participate in the Supplemental Retirement Plan immediately upon employment or anytime thereafter. The plan is open to all employees - full-time, part-time, substitute, temp, and ROP participants. The program is not open to the visiting international faculty (VIF).
Enrollment
The Benefits and Compensation Department is excited to implement a more efficient process for enrolling in and maintaining your Supplemental Retirement Plans 403(b) and the 457(b) accounts. Participating employees now have the ability to enroll, manage contribution rates, beneficiary updates, and fund allocation requests by contacting Lincoln Financial Group directly by telephone 1-800-234-3500 or online via Lincoln's website www.LincolnFinancial.com. There are no paper forms for these processes. This allows employees to have access to their Supplemental Retirement accounts 24 hours a day/7 days a week. Participants will need to log on to the Lincoln Financial Group site and set up a username and password. Follow the on-screen registration process to register with the website. You can then make salary deferral election changes, change investment options, and make beneficiary elections.
Loan and Distribution Information
Loan and distribution forms are available by contacting Lincoln directly by at 1-800-234-3500 or via the Lincoln Financial website. These forms can now be submitted directly to Lincoln Financial without requiring approval of the plan administrator, except in the case of mandatory military service.
Summary
Contributions into the 403(b), Roth 403(b) and 457(b) plans are to be used for retirement. Money in the retirement plan is not like money in a credit union or savings account. The IRS provides strict guidelines for withdrawing funds prior to retirement. There, however, some exceptions. Loans and hardship withdrawals may be available under the pre-tax 403(b) and 457(b) plans. Loans and hardship withdrawals are not an option with a Roth 403(b) or 457 plan.
Cash distributions from your pre-tax 403(b) plan, whether upon separation from PWCS or for a hardship condition, are subject to state and federal taxes, along with a 10% federal tax penalty for early withdrawal. While a regular employee with PWCS, full-time, part-time, substitute, temporary, or ROP, you are not eligible to make a 403(b) distribution or rollover into another retirement account (other than hardship circumstances) until you reach age 59 1/2. Money in a 457 account may only be withdrawn upon complete separation from PWCS, regardless of your age.
Consultations
If you feel the need to work with a Lincoln Financial Retirement Consultant (RC) for assistance with enrollment, you can contact the retirement consultant that is assigned to your work location for assistance. The Lincoln Representatives are currently available to meet with PWCS employees virtually. You can visit the Lincoln online scheduling site to set up an appointment with one of the retirement consultants assigned to PWCS.
- Supplemental Retirement Plan Comparison - Pre-Tax or Roth? (PDF download)
- Understanding the Lincoln 457 Option - No PWCS match (PDF)
- Lincoln Financial 403(b) Enrollment Information booklet (PDF)
- Lincoln Financial 457 Enrollment Information booklet (PDF)
- PWCS Lincoln Financial Portal
For the Lincoln Financial Plan Document, please visit the PWCS Intranet Benefits webpage.