The ACC Money Purchase Plan is a mandatory, defined contribution plan described in Internal Revenue Code (IRC) Section 401(a). All ACC employees working less than half-time (<20 hours/week) participate in this mandatory retirement plan. The following table provides an overview of the program.
Highlights of the ACC Money Purchase Plan
| Statutory Basis | Omnibus Budget Reconciliation Act of 1990 |
|---|---|
| Type of Plan | 401(a) |
| Type of Investment | Group Fixed Annuity / Mutual Funds |
| Annuity Company | AuguStar Life Insurance Company |
| Vesting Time | 1 hour |
| Employee Contribution | 6% (pre-tax dollars) |
| Employer Contribution | 1.5% |
| Interest Rate | Will vary, but recent history approximately 3% |
| Plan Administrator | Merkley, Newman & McLaws, Inc. (MNM) P.O. Box 872 Queen Creek, AZ 85142 Phone: 480-507-6640 Fax: 480-813-7791 |
| Refund Date / Refund Request | 90 days after the close of the month in which you receive your final paycheck or later at the participant’s direction. Please return a completed Distribution Election Form to jacob@mnmpensions.com to request a refund. |
| Website | www.mnmpensions.com/services |
Employees are exempt from contributing to the ACCMPP if one or more of the following apply:
- They are currently contributing to either the Teacher Retirement System of Texas (TRS) or the Optional Retirement Program (ORP) through ACC or another TRS-covered employer.
- They are retired or receiving retirement benefits from either TRS or ORP.
- They are a part-time ACC student working for the college and enrolled in at least 6 hours in the Fall or Spring semesters or 3 hours in the Summer semester.
- They work as a Work-Study student at the college.
If you are in another retirement program with a private company or retired from the State of Texas (ERS), you must still enroll in the ACCMPP.
To access your individual account, please create an account at the MNM Pensions Account Login Page. If you have additional questions about your account or an account refund, please contact Merkley, Newman & McLaws, Inc.
ACC Money Purchase Plan Questions and Answers
Who must participate in this plan?
This plan is mandatory by federal law for ALL part-time or adjunct faculty and hourly employees except qualified part-time ACC students.
Who is exempt from contributing?
- Employees currently contributing to TRS or to an ORP
- Employees receiving benefits from either TRS or ORP
- Part-time ACC students who work for the College, and:
- Regularly attend classes, and
- Are enrolled in at least
- Six credit hours for either the Fall or Spring semesters, or
- Three credit hours for the Summer semester
What if I am in a retirement program with a private company or the State of Texas through ERS?
You are still required to be in the ACCMPP.
If I quit, can I get my money back?
Yes. If you permanently terminate employment with ACC, you may complete a Distribution Election form requesting a refund. This form is available online and in the Benefits Department. Submit this form directly to Merkley, Newman & McLaws, Inc., by email, fax, or mail.
When will I actually get the refund?
Refunds are made 90 days after the close of the month in which you receive your final paycheck, or later at the participant’s direction.
Is there a penalty for taking my money out of the plan before age 59 1/2?
A 10% federal early withdrawal penalty tax generally applies to the entire taxable portion of your distribution upon cash payout prior to age 59½ (including pre-tax employee contributions, employer contributions, and earnings). However, statutory exceptions apply — such as separating from ACC service during or after the calendar year you reach age 55, or rolling over your funds into an eligible IRA or qualified retirement plan within 60 days.
Will I owe taxes on the refund?
Yes. All employee contributions made after January 1, 2002, employer contributions, and accrued interest/earnings are pre-tax and will be taxed as ordinary income in the calendar year you receive the distribution. (If you contributed on an after-tax basis prior to January 1, 2002, that portion was previously taxed and is not taxed again.) You will receive an IRS Form 1099-R detailing the taxable portion of your refund.
What happens to the 1.5% the college contributed for me?
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.
Can I leave my money in the plan if I quit?
If you have an account balance of $7,000 or less, you must request a lump-sum distribution or roll over your account to another tax-qualified plan such as an IRA. If you have an account balance of $7,000 or less and do not contribute for 18 months, your account will be automatically distributed — either as a lump-sum payment sent to your last known address if you have $1,000 or less in your account, or as an automatic rollover to an IRA account with HAND Benefits & Trust Co. if between $1,000 and $7,000. If you have more than $7,000, you can leave your funds in the plan until you decide to request a distribution or annuity.
Where can I get more information about this plan?
Please contact plan administrator Merkley, Newman & McLaws, Inc., by email at jacob@mnmpensions.com or phone at 480-507-6640 for assistance with the ACCMPP.
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