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Overview Bencor Special Pay Plan

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Overview Bencor Special Pay Plan

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    1. 1 Overview Bencor Special Pay Plan For Employees of the School District of Lee County

    2. 2 Introduction BENCOR NATIONAL GOVERNMENT EMPLOYEES RETIREMENT PLAN™ (BENCOR Special Pay Plan) Offered by BENCOR, Inc. Allows governmental entities and their employees to take maximum advantage of the Federal tax laws.

    3. 3 Eligibility Must be administrative, supervisory-technical, confidential, or instructional employee. Must be eligible for accumulated sick leave pay and/or annual leave pay from the School District of Lee County. Must be retiring, terminating or enrolled in DROP. Must have accumulated sick and annual leave equal to $1,000.00 or more.

    4. 4 Eligibility Accumulated sick leave pay and annual leave pay of employees who retire, terminate employment, or enter into the DROP program will be placed into the BENCOR “Special Pay Plan” subject to contribution limits.

    5. 5 Contribution Limits In the last year of employment, the Maximum Plan Contribution cannot exceed 50% of the Plan Year Compensation* or $49,000, whichever is less. *Plan Year Compensation=Wages for the previous 12 months + Accumulated Sick Leave Pay + Accumulated Annual Leave Pay (“Special Pay”) that is to be paid in that year.

    6. 6 Plan Trustee Wells Fargo

    7. 7 Plan Sponsors Diversified/Transamerica BENCOR, Inc.

    8. 8 Plan Administrator BENCOR Administrative Services Toll free number: 1-888-258-3422

    9. 9 Investments Diversified/Transamerica offers 17 investment options. Special Pay Plan contributions are automatically placed in a fixed account (Guaranteed Pooled Fund) and can only be invested in other accounts in accordance with the participants’ instructions.

    10. 10 Investment Expenses No fee charged for contributions that remain in the Guaranteed Pooled Fund (i.e. fixed) Account option.

    11. 11 Distributions Distributions may be taken upon: 1) Termination of employment 2) Total disability 3) Death

    12. 12 Distributions The participant may choose to leave money in the Plan, self-directing future investments and taking distributions as desired in a tax-deferred manner. Distributions may be taken in a lump sum or as periodic payments taken monthly, quarterly, semi-annually, or annually.

    13. 13 Distributions To receive a distribution, the participant must complete a DISTRIBUTION/LOAN REQUEST FORM. A distribution packet is available from BENCOR Administrative Services at 1-888-258-3422. Distributions will be processed in a timely manner with minimal waiting (once BENCOR receives the money from the District AND the distribution request form has been submitted).

    14. 14 Distributions Participants (or surviving spouses) can “roll over” Plan Assets into an IRA or into another qualifying plan after termination of employment from the School District of Lee County.

    15. 15 IRS Penalties There is no IRS penalty for any Plan participant age 55 or older who elects to withdraw plan funds provided the participant separated from service during the calendar year in which he/she turned age 55, or later.

    16. 16 IRS Penalties Plan participants who separate employment before the calendar year in which they turn age 55 and who elect to withdraw Plan funds prior to age 59 ˝ are subject to a 10% early withdrawal penalty by the IRS.

    17. 17 IRS Penalties The School District will “make whole” (subject to applicable withholding tax) participants who are subject to this penalty if they request all of their funds from the Plan Administrator within 60 days of termination of employment with the School District of Lee County.

    18. 18 Excess Sick and Annual Leave Any eligible sick leave or annual (vacation) leave in excess of plan contribution limits will be paid to the participant, subject to Federal withholding and related payroll taxes (Social Security and Medicare).

    19. 19 Employee Responsibilities 1) Complete BENCOR/Diversified/Transamerica enrollment form * a. Select account(s) (if not previously selected) b. Identify beneficiaries 2) Forward completed form to BENCOR 3) Retain packet and all pertinent information * Note: If no selection is made, eligible dollars will automatically be paid into the Guaranteed Pooled Fund (Fixed) Account.

    20. 20 End Part I

    21. 21 BENCOR Calculation Example

    22. 22 BENCOR Calculation Information Needed Plan Year Salary (July 1 – Term. Date) Hourly Rate Base salary + Degree Supplement divided by hours worked per year Final Sick Leave Balance (In Hours) Final Annual Leave Balance (In Hours) Payment % Eligibility (12+ Years at Lee County School Board = 100%)

    23. 23 Sample Data

    24. 24 BENCOR Calculation Example

    25. 25 Calculation of Sick Leave Pay-off

    26. 26 Calculation of Plan Year Compensation

    27. 27 IRS Limitations

    28. 28 Calculation of Actual BENCOR Contribution

    29. 29 Calculation of Remainder of Terminal Pay

    30. 30 End Part II

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