PST Deferred Compensation Retirement Plan Overview

Below are some of the important features about the Plan. This website is intended to be a summary of the plan provisions. In the event that a conflict exists between the information contained within this website and the plan document, the plan document provisions prevail. For more information, view the Frequently Asked Questions or contact us.

Eligibility

All full-time, part-time, seasonal, temporary or contract employees or elected officials of the County or Special Districts governed by the Board of Supervisors of the County who are not members of the San Bernardino County Employees’ Retirement Association (SBCERA) or a participant in the County’s 401(k) Salary Savings Plan shall participate in this Plan. Those employees who are employed by the County in a regularly budgeted position and also in an extra-help position shall not be required to participate in the PST Plan as long as the employee is participating in the SBCERA through the regular position. In addition, employees who have retired from the County pursuant to the guidelines established by the SBCERA, and have returned to County employment, shall not be required to participate in the plan. The Plan is an alternative to Social Security coverage, as permitted by the federal Omnibus Budget Reconciliation Act of 1990 (“OBRA”). By participating in the Plan, you are not subject to tax on compensation under the Old Age, Survivor and Disability Income portion of FICA (the Federal Insurance Contributions Act). You will be subject to the Medicare portion of FICA. As long as you meet these eligibility criteria, you are required to remain enrolled in the Plan.

Mandatory Contributions

You contribute 7.5% of your gross compensation to the Plan.

Voluntary Contributions

No additional contributions are permitted under the Plan.

Investments

Your mandatory contributions are automatically invested in the VoyaTM Stable Value Option. You may not transfer your mandatory contributions out of the Fixed Account.

Timing of Distributions

Distributions are allowed only upon:

  • separation from service either before or after normal retirement date (attainment of age 55);
  • attainment of age 59½;
  • total and permanent disability; or
  • death.

A change from part-time to full-time employment (or any similar change) is not considered an event that results in a distribution from the Plan. The Internal Revenue Service (IRS) requires that distributions begin no later than the April 1st of the calendar year following the calendar year in which you attain age 70½ or retire, whichever occurs later. If you fail to receive the minimum required distribution for any tax year, a 50% excise tax is imposed on the required amount that was not timely distributed. These rules are referred to as IRS minimum required distribution requirements (MRD).

Payment Options

When you are entitled to a distribution of benefits under the Plan, the following payment options are available:

If your account balance does not exceed $5,000, your benefits will be distributed in a lump sum.

If your account balance exceeds $5,000, you may elect the distribution of your benefits in one (of a combination of) the following methods:

  • Full or partial lump sum payment. A lump sum payment is the automatic form of benefits for accounts less than $5,000.
  • Periodic payments of your account (for account balances of at least $5,000)
    -Specified Period- not less than 3 years and no more than your life expectancy.
    -Specified Amount- cannot be less than $250 per payment and no more than 33 1/3% of your account.
  • Rollover your distribution into an eligible 401(a), 401(k), 403(b) or other governmental 457 plan, a traditional Individual Retirement Account (IRA) or a Roth IRA

Please note that with respect to amounts rolled over into a non-457(b) eligible retirement plan, any subsequent distributions to the participant from the non-457(b) plan will be subject to an IRS 10% premature distribution penalty tax on the taxable portion if distributed prior to 59 ½, unless an exemption applies.

All distributions are eligible for rollover except for: 1) amounts distributed for a hardship withdrawal; 2) IRS minimum required distributions payable on or after you attain age 70 1/2; and 3) periodic payments made over your life or a specified period of 10 years or more.

Annuity payment options are not permitted

  • Postpone any decision on benefit payments until a later date

All distributions are eligible for rollover except for: 1) a hardship withdrawal; 2) IRS minimum required distributions payable on or after you attain age 70 1/2; and 3) periodic payments made over your life or a specified period of 10 years or more.

Annuity payment options are not permitted.

To select a distribution under the Plan, you will need to complete a Termination/Distribution Request Authorization form that is available by calling Customer Service at (800) 584-6001.

Divorce and Domestic Relations Matters

In the event a court issues a Qualified Domestic Relations Order (QDRO), your account will be split and payments will be made, as specified in the QDRO. In the event the QDRO identifies the alternate payee as your former spouse (“spousal alternate payee”), he or she is entitled to elect immediate distribution of the amounts awarded under the QDRO. A spousal alternate payee is also eligible to rollover amounts awarded to another eligible retirement plan in which he or she participates. In the event of divorce, please contact Customer Service at (800) 584-6001 to request a Domestic Relations Order (DRO) information package.

Distributions for Health and Long-Term Care Insurance Premiums

The Plan allows certain eligible retired public safety officers the opportunity to directly transfer up to $3,000 annually tax-free for direct payment of qualified health insurance premiums (accident, health insurance or long-term care). Annual limit is an aggregate on distributions from all plan types maintained by the employer. To find out if you are eligible for this plan benefit, call your local Voya™ representative or Customer Service at (800) 584-6001.

Death Benefits

Upon your death, benefits would be payable to the beneficiary(ies) that you designated under the Plan. If you have not designated a beneficiary, or no beneficiary survives you, payment of death benefits will be made to your surviving spouse if married at the time of death or, if not, your estate. Under the Plan, if you are married, your spouse must be your sole primary beneficiary unless your spouse consents in writing to your naming of an alternate beneficiary. Your beneficiary will be entitled to select from a variety of payment options, which are generally the same options that would have been available to you. Your beneficiary must notify Voya of your death and make a payment election in accordance with the Plan. To verify who your beneficiary is on record or to make changes to your beneficiary information, please call Customer Service at (800) 584-6001. Your beneficiary will need to call Customer Service at (800) 584-6001 for a Death Benefit Withdrawal Request Form.

Taxation

All of the payments you receive from the Plan are subject to Federal and state income taxes. Federal income tax withholding will apply to your payments, as described below, based on whether you were eligible to rollover the distribution.

  • If you receive a distribution that was eligible to be rolled over, a mandatory 20% will be withheld for federal tax purposes at the time of payment, unless you elect to directly rollover your payment to an eligible plan or IRA.
  • If you receive a distribution that was not eligible to be rolled over, 10% will be withheld for federal tax purposes at the time of payment. However, you may elect to have no tax withheld.

Amounts distributed from a 457 plan are not subject to the IRS 10% premature distribution penalty tax if distributed prior to attaining age 59½ © 2014 Voya Services Company. All rights reserved.

Transfers for the Purchase of Service Credits

A participant may request a direct transfer of all or a portion of his benefits to the San Bernardino County Employees’ Retirement Association (SBCERA) for the purpose of purchasing of prior service credit. To initiate this process, please follow the steps outlined below:

  • Contact Employee Benefits and Services at (909) 387-5831. They will calculate the exact period of time available for purchase.
  • Contact SBCERA to determine the cost of the purchase. They will provide you with a letter and the forms you need to complete the transfer with Voya.
  • Call the Service Center at (800) 584-6001 to request a Withdrawal and Transfer Request for Purchase of Governmental Defined Benefit Service Credit.

After you have received the letter from SBCERA and completed all the required forms, submit them directly to the County of San Bernardino Employee Benefits and Services Division for processing and the Employee Benefits and Services Division will forward them to Voya for processing.

Not FDIC/NCUA/NCUSIF Insured | Not a Deposit of a Bank/Credit Union | May Lose Value | Not Bank/Credit Union Guaranteed | Not Insured by Any Federal Government Agency

Insurance products issued by Voya Retirement Insurance and Annuity Company, One Orange Way, Windsor, CT 06095-4774. Securities are distributed by Voya Financial Partners LLC (member SIPC). Custodial account agreements or trust agreements are provided by Voya Institutional Trust Company. Insurance obligations are the responsibility of each individual company. All companies are members of the Voya® family of companies. Securities may also be distributed through other broker-dealers with which Voya has selling agreements. Product and services may not be available in all states. CN-1214-10893-0117