Supplemental Retirement Plan

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Prince William County 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 (3) 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 Contributions are taxed at the time of investment but are not taxed when the funds are withdrawn at retirement.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. 

 

The IRS has announced the 2020 contribution limits for retirement savings accounts, including contribution limits for 403(b) and 457 plans. To change your contributions to Lincoln Financial please visit the Lincoln Financial website, call 1.800.234.3500 or contact the Lincoln Financial Retirement Consultant for your work location.

TAX YEAR 2019 2020
AGE 49 AND UNDER $19,000 $19,500
AGE 50+ Additional $6,000 (total $25,000) Additional $6500 (total 26,000)

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 from the flyer link below to make changes. 

Meet with a Lincoln representative to discuss any questions you may have about your retirement strategy! Email benefits@pwcs.edu to book an appointment in the Kelly Leadership Building – appointments available every Wednesday, year-round.

Matching Contributions

PWCS currently matches up to the first two (2) percent 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. As of 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 (1) 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).

money man

Enrollment

The Office of Benefits & Retirement Services 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 Web site 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.

If you feel the need to work with a Lincoln Financial Retirement Consultant (RC) for assistance with enrollment, you can contact the RC that is assigned to your work location to find out when they will be available at your location or to set up an appointment that is convenient for you.  If this is not convenient, we also have an RC available at the Kelly Leadership Center every Wednesday and the first Tuesday each month (for Spanish-language assistance) by appointment from 9 a.m.–4 p.m. You can contact Jill Argueta in the Office of Benefits and Retirement Services to set up an appointment at 703.791.8927.

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, FT, PT, sub, temp, 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


Lincoln Retirement Consultants are available at the Kelly Leadership Center every Wednesday and the first Tuesday each month (for Spanish-language support) by appointment.  Please contact Jill Argueta at arguetjd@pwcs.edu or 703.791.8927 to schedule an appointment. 

Consultants are assigned to each work location and visit each school location quarterly.  Contact information is listed here, but please see the link below for your assigned consultant.

 

Consultant Name Email Phone Number
Liliana Zarate  Liliana.Zarate@lfg.com 202-329-5715
Ernest Massenberg ernest.massenberg@lfg.com 703-437-7793
Steve Singer steve.singer@lfg.com 703-680-4524
Mike Knapp michael.knapp@lfg.com 571-438-1705
Haleh Nikmaram haleh.nikmaram@lfg.com 703-581-9535

 

For the Lincoln Financial Plan Document, please visit the PWCS Intranet Benefits page

To ensure you have access to diversified, high-quality and reasonably priced retirement plans, Prince William County Public Schools (PWCS) regularly monitors the lineup and performance of the funds available in our Supplemental Retirement Plan and our 457 Governmental Plan. We’re pleased to announce to further improve our retirement plans. We changed our fee structure and modified the fund lineup, effective June 28, 2016.

New Fee Structure


We have negotiated a reduction in fees with Lincoln Financial Group (“Lincoln”) for recordkeeping and plan administration services, from 18 to 13 basis points (0.13 percent of plan assets annually). In addition, the way fees are applied across participants’ plan assets is changing to be more transparent. Under the old fee structure, many of the investment options in the plan have revenue sharing allowances or subsidies that are part of each fund’s expense ratio. Revenue sharing has been used to pay for eligible plan expenses, like recordkeeping and plan administration services. In the new fee structure, every participant pays the same percentage, no matter what investments they hold in their portfolios.

The total annual cost of plan expenses will be 0.13 percent of your account balance, which will be debited in quarterly installments. Any revenue sharing/allowance provided by a fund will be used to offset this fixed cost in whole or in part.

If any fund allowance does not completely offset the cost, a debit will be made to your account to pay the difference. If the fund revenue sharing exceeds this stated cost, your account will receive a credit to reflect this excess revenue sharing.

You’ll see this fee on the first page of your quarterly account statement. You’ll also be able to see it in your account summary online. With this approach, you can easily see exactly what you are paying for plan recordkeeping and administrative services.

In addition to Lincoln’s fee, each fund contains its own expense ratio for managing the portfolio, which varies from fund to fund. Since revenue sharing will no longer be used as the primary basis for paying recordkeeping and plan administration services, we can now offer funds with lower net expense ratios.

Fund Changes

In order to support this new fee structure, we are instituting a few changes to our fund lineup:

  • Five new funds will be added
  • Three existing funds will be eliminated (all of which will be replaced by new funds)
  • Five other funds will be switched out for different share class of the same fund. The new share class represents a lower net cost for all participants invested in the affected funds.
  • We’ll also switch out the Stable Value Account available in the plans. The new Stable Value Account (Lincoln Stable Value Z78) features the same guaranteed minimum interest rate of 3.00 percent but allows for the 0.13 percent fee deduction.
  • The composition of our target date and risk portfolios will change to reflect the changes in our fund lineup.

We’re pleased to offer these modifications to our plans. Any time there’s a change to investment options, we encourage you to review your portfolio and make any changes necessary to meet your retirement goals. Should you have questions, please access the Lincoln website at LincolnFinancial.com or call the Lincoln Customer Contact Center at 800-234-3500. To ask questions about your account or to schedule an annual review, you may also contact your Lincoln Retirement Consultant.

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