Welcome to your 457(b) retirement plan. Click below to view the features and highlights of your employer’s retirement plan.
The plan highlights are only a brief overview of the plan's features and are not a legally binding document. The information in this section does not modify the terms of the plan and in the event of a conflict, the terms of the plan control.
Employees of Chicago Public Schools (CPS) who normally work 20 hours or more per week are eligible to make elective deferrals by salary reduction.
You may contribute as much as 100% of your annual includible compensation up to the maximum IRS contribution limit. You may increase or decrease the amount you contribute to the plan as often as your employer allows.
Includible compensation is not reduced by elective salary reduction contributions to the 457(b) program or other plans sponsored by CPS.
You may qualify for a higher level of contributions than those described above if certain requirements are met:
Your plans were established to encourage long-term savings. A 457(b) plan has more stringent withdrawal restrictions while you are employed, but less stringent rules after you separate from service and is not subject to a 10% federal early withdrawal penalty except on amounts rolled over from other non-457(b) eligible retirement plans.
A distribution may be made in these events:
Minimum distribution required at attaining age 70½ or upon retirement, whichever is later.
Bear in mind that income taxes are payable upon withdrawal.
Tax-free loans make it possible for you to access your account without permanently reducing your account balance. Defaulted loan amounts (not repaid on time) will be taxed as ordinary income and may be subject to a 10% federal tax penalty if you are under age 59½. The tax penalty does not apply to 457(b) plan accounts.
You decide how to invest your plan account. The following funds are available in your retirement plan. They provide you with the flexibility you need to create a suitably diversified portfolio that matches your personal retirement time horizon, investment risk tolerance and investment preferences.
To obtain a Portfolio Director prospectus and underlying fund prospectuses, visit www.valic.com or call 1-800-428-2542 and follow the prompts. The prospectuses contain the investment objectives, risks, charges, expenses and other information about the respective investment company that you should consider carefully before investing. Please read the prospectuses carefully before investing or sending money. Policy Form Series UIT-194, UITG-194 and UITG-194P.