Because Austin Community College does not participate in Social Security, the college was required by the Omnibus Revenue Reconciliation Act of 1990 (commonly referred to as OBRA) to enroll all employees in a qualified retirement plan effective January 1, 1992.
To comply with the law, ACC implemented the ACC Money Purchase Plan (ACCMPP). This retirement plan will provide you or your beneficiary with a fully vested cash settlement or an annuity income when you decide to permanently terminate employment with the college.
Employees are exempt from contributing to the ACCMPP if they are:
- currently contributing to either the Teacher Retirement System of Texas (TRS) or Optional Retirement Program (ORP) through ACC or another higher education institution,
- retired or receiving retirement benefits from either TRS or ORP,
- a part-time ACC student who works for the college and is enrolled and regularly attends classes for the duration of the full semester currently registered in (Fall, Spring or Summer)., or
- a work study student of the college.
If you are in another retirement program with a private company or retired from the State of Texas (ERS), you are still required to be in the ACCMPP.
When you permanently terminate employment with ACC, you may complete a Distribution Election form requesting a refund. Submit this form directly by mail, fax or email to the Plan Administrator (see below). Refunds are made ninety (90) days after the close of the month in which you receive your final paycheck, or later at the participant’s direction. You will receive the college’s contribution (1.5%) and your contributions (6.0%), along with any investment gain or loss, when you request a distribution. This is a taxable event in the year of withdrawal and may be subject to a 10% tax penalty if you are under the age of 59 ½.
If you have less than $5,000 and make no contributions to your account for 18 months, you are required to take a distribution of your account. If you do not request a distribution or rollover to another eligible retirement plan such as an IRA, your account will be automatically distributed as follows:
- Below $1,000 = taxable Lump-Sum, mailed to your last known address.
- Above $1,000 but below $5,000 = a direct rollover to an IRA at HAND Benefits & Trust Co.
- Above $5,000 = no involuntary distribution. You can leave your funds in the plan until you request a distribution, annuity or rollover at a later date or retirement.
Please note: If an account is suspended because you cannot be located and no contributions are made after two years, the account will cease earning interest. A 10% penalty upon withdrawal will apply to some or all of your distributions, if you are under age 59 1/2. To avoid an IRS penalty you may rollover your account to an IRA or eligible retirement plan. NOTE: Any distribution will have a taxable implication for the applicable tax year. You will receive a 1099R form which details the taxable portion of your refund.
If you have questions or need assistance regarding your ACCMPP account, please contact Merkley, Newman & McLaws, Inc. by email at: firstname.lastname@example.org or by calling 800-580-2176 Ext 1.
Highlights of the ACC Money Purchase Plan
|Statutory Basis||Omnibus Budget Reconciliation Act 1990|
|Type of Plan||401(a)|
|Type of Investment||Group Fixed Annuity / Mutual Funds (8)|
|Annuity Company||Ohio National Life Insurance Company|
|Rating||A+ Superior by A.M. Best; AA- by Standard & Poors|
|Vesting Time||1 hour|
|Employee Contribution||6% (pre-tax dollars)|
|Interest Rate||Will vary but recent history approximately 3%|
|Plan Administrator||Merkley, Newman & McLaws, Inc.; 1.800.580.2176 ext 1;|
|Refund Date||90 days after the close of the month in which you receive your final paycheck or later at the participants directions.|
ACC Money Purchase Plan Questions & Answers
View ACC Money Purchase Plan Questions & Answers for additional details about the program.
Contact Barbara DeRusha or Joshua Kriby with Compass Retirement Planning at 512-251-3944 or email at:
Barbara DeRusha – email@example.com
Joshua Kirby – firstname.lastname@example.org
Merkley, Newman & McLaws, Inc. – Plan Administrator at 800-580-2176 ext. 1
- MNM Pensions website
Access Individual Account Information for changes with SSN and birthday. Please change password upon initial entry.
- Fax: (480) 813-7791
Merkley Newman and McLaws, Inc.
PO Box 5028
Mesa, AZ 85211
- Email: email@example.com
- Telephone: 800-580-2176 ext 1