The MFA Retirement Plan The MFA offers two parts to the employee retirement program: A 401(a) plan, which is employer-funded and a supplemental retirement plan is offered through a 403(b) plan, which is funded through employee contributions. Currently, the MFA offers investment options through Fidelity Investments. All employees hired July 1, 2007 and after must enroll with Fidelity for both 401(a) and 403(b) plans. (Note: Employees currently enrolled in TIAA-CREF as of June 30, 2007 and prior are permitted to remain and make changes within TIAA-CREF). Employer Contributions – 401(a) Plan A base retirement plan 401(a) Plan is available for all full time, part time, and wage employees. The MFA offers retirement options through Fidelity Investments. Completion of the 401(a) retirement enrollment form is required and should be returned to HR within the first three days of your hire. In 2009, the MFA will contribute 4% of the salary up to the annual maximum compensation limit of $225,000 to the 401(a) Plan on the first of the month after three months of employment. The Board of Trustees has agreed to allow the MFA to review the contribution amount quarterly. 401(a) Eligibility Requirements √ √ √ Employees must meet the service requirement of three months of employment and the age requirement of 21 before contributions begin. New employees must complete a Fidelity enrollment application to enroll in the 401(a) plan. Employees do not contribute to this plan; it is funded only by MFA employer contributions.
401(a) Vesting Schedule In order for 401(a) funds to be available to the employee, the employee must be vested. The vesting schedule is based on when the MFA made the contribution to the plan and the employee’s years of service with the MFA. Employer contributions made prior to 1/1/07 are on the former five year cliff vesting schedule. Vesting schedules for employer contributions made 1/1/07 and after are based on the hire date and are noted below. HIRE DATE IS 1/01/07 OR AFTER – 6 YEAR GRADED VESTING SCHEDULE Years of Service Other 0 (0%) 1 (0%) 2 (20%) 3 (40%) 4 (60%) 5 (80%) 6 (100%) HIRE DATE IS 12/31/06 OR BEFORE – 5 YEAR GRADED VESTING SCHEDULE Years of Service Other 0 (0%) 1 (0%) 2 (20%) 3 (40%) 4 (60%) 5 (100%)
Employee Contributions - 403(b) Plan The MFA offers a supplemental retirement plan for all eligible employees. Employees hired on 7/1/07 and after who would like to contribute to the 403(b) must enroll through Fidelity Investments. Based on IRS Code limitations, the 2009 403(b) plan contribution basic annual limit is $16,500 and the age 50+catch-up annual limit is $5,500 for 2009. Employees can enroll in the 403(b) Plan at any time during their employment as long as they meet the criteria for doing so. An employee must work a minimum of 20 hours a week in order to be eligible to contribute to the MFA 403( b) Plan. Employees can elect to contribute through the 403(b) Plan on a pre-tax or after-tax (Roth 403(b) ) basis. Note: If you worked for a previous employer during the current calendar year and you provided employee contributions to a retirement plan such as 403(b) plan, your total contribution cannot exceed the maximum $16,500.00 FOR EXAMPLE: Let’s assume you worked for Company A from January to June 2009 and began working with MFA in June 2009. During your employment with Company A, you participated in the 401(k) retirement plan by contributing $8,250.00 for the plan year. If you elect to contribute the maximum contribution of $16,500.00 for 2009 to your retirement contributions with MFA; you can only contribute $8,250.00 to your MFA 403(b) plan for 2009.
The compensation floor for determining highly compensated employee (HCE) is $100,000. Employees with compensation over $100,000 will be classified as highly compensated.
Contact Information: Retirement - Fidelity Fidelity Investments Plan # 72179 401(a) Plan # 72180 403(b)
TIAA-CREF Individual & Institutional Services, LLC,
Participant Help Line 800-343-0860 www.fidelity.com Participant Help Line 800-842-2776 www.tiaa-cref.org
Retirement TIAA-CREF (available only to employees with hire date of 6/30/07 or prior).
401(a) Vested Emp Defined Contribution: 150976 401(a) Non-Vested Defined Contribution Plan: 150977 403(b) Taxed Def Plan ID: 150978 Plan Code: CA-99 (old platform)