Statewide Retirement Plan: Money Purchase Component Only
This component is an individual, self-directed investment account held at Fidelity. It is most commonly paired with the Hybrid Defined Benefit Component, but can be added to any Statewide Retirement Plan component that provides a defined benefit.
An Extra Savings Option
Statewide Retirement Plan Members or Employers who want to make additional retirement contributions can deposit those excess funds into individual accounts in the Member's name. Additional contributions made by Members are post-tax, while deposits from Employers are pre-tax.
Control Your Own Investments
Contributions into this Component are placed in an individual, self-directed investment account at Fidelity. Members manage their own accounts, investments, and beneficiaries directly through Fidelity, most commonly through their NetBenefits platform.
From their first day enrolled in the Component, Members are fully vested in their contributions and any amounts “rolled over” to their account. Members become vested in Employer contributions at a rate of 20% per year, and are fully vested after five years. Service credits in the Statewide Retirement Plan prior to enrolling in the Money Purchase Component also count towards this vesting schedule.
The Money Purchase Component offers a number of tools to help Members get the most from their retirement, including:
- Monthly lifetime benefit conversion: Members can convert all or a portion of their account balance to a lifetime benefit in the Statewide Retirement Plan. Members can also complete the same conversion through an outside annuity provider
- Periodic Payments: Members may choose to receive payments over a specific timeframe or receive a certain dollar amount per payment until the account is exhausted
- Lump Sum: Members may take a lump sum withdrawal for any or all of their account funds
