Below you will find important information about the Wayne County Defined Contribution Plan; also known as the 401(a) Plan. This information is just an overview of the plan's features. For more detailed information about your plan, you can request your plan's Summary Plan Description (SPD) from your Plan Administrator. The information provided here is subject to your Collective Bargaining Agreement or Benefit Plan Document.
ENROLLMENT AND ELIGIBILITY
You are currently eligible to enroll in your plan. You may enroll at any time.
CONTRIBUTIONS
The plan's basic benefits are funded by contributions from the employer and participants and by the subsequent investment income earned. You may be allowed to make pre-tax and after-tax contributions to the plan.*
In 2023, federal tax law allows employee and employer contributions up to a combined total of $66,000 or 100% of compensation, whichever is less.
Changes to your contributions to the plan can be made by completing the Defined Contribution Change Request Form found at www.wcers.org.
You may roll over money to your account, in any amount, from another similar retirement plan. Refer to the Plan Document for further information.
You can direct both your own contributions and any employer contributions to any investment offered in the plan.
* In 2023, federal tax law allows you to make pre-tax contributions to your retirement plan up to $22,500.
WHAT IS VESTING?
"Vesting" refers to your ownership of the money in your account. You are immediately 100% vested in any contributions you make to your account.
- Non-Executive participants who are covered under a Collective Bargaining Agreement are 100% vested in the EMPLOYER CONTRIBUTION source after three years of service.
- Participants classified as Executive, who are NOT covered under a Collective Bargaining Agreement, are 100% vested in the EMPLOYER CONTRIBUTION source after two years of service.
Any employer contributions you may have received as part of your participation in the prior “Plan 5” are vested according to the following schedule:
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Years of service
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Percentage vested
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After 1 year
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50%
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After 2 years
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75%
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After 3 years
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100%
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BENEFICIARIES
A "beneficiary" is the person or persons who will receive the money remaining in your retirement account when you pass away. It is important to name a beneficiary to ensure the assets in your account go where you want them to go. Naming your beneficiary (or beneficiaries) is easy:
ONLINE
- Go to WayneCountyRetire.com and click "Log in" at the top right-hand side of the screen
- Follow the prompts to create your user ID and password
- Once logged in, choose "Personal Information" from the menu bar
- You will find the beneficiary designation section on the right-hand side of the screen
- Add or update your beneficiary (or beneficiaries) and follow the instructions to confirm.
BY PHONE
If you would prefer to name or update your beneficiary (or beneficiaries) over the phone, please call Empower at 877-778-2100. Participant service representatives are available Monday through Friday, 8 a.m. to 9 p.m. ET.
ACCESSING YOUR MONEY
You may be able to access money in your retirement plan account through a loan.
LOANS
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Number of available loans
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Refer to your Collective Bargaining Agreement or Benefits Plan
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Method of repayment
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Payroll Deduction
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Tax consequences
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If loan is not paid in full, tax consequences may apply
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Prepayment available
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Yes
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Any outstanding loan balance not paid back at termination becomes taxable in the year of default. Under the Tax Cuts and Jobs Act, for defaults related to termination of employment after 2017, the individual has until the due date of that year’s return (including extensions) to roll over this amount to an IRA or qualified employer plan.
GENERAL PURPOSE
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Interest rate
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6.5%*
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Minimum loan
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$1,000
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Maximum loan
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50% of your vested account balance, up to $50,000 in a 12-month period*
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Repayment period
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1 to 5 years
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PRIMARY RESIDENCE
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Interest rate
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6.5%*
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Minimum loan
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$1,000
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Maximum loan
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50% of your vested account balance, up to $50,000 in a 12-month period*
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Repayment period
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6 to 15 years
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*Interest is paid back to participant's account. Additional information about loan calculations and loan interest rate details can be found in your plan's loan policy.
RETIRING OR LEAVING THE EMPLOYER
It's important to learn about all options regarding your account balance before you retire or separate from service. You will need to make a decision about what to do with your vested account balance when one of the following events occurs:
- Your employment with Wayne County, Wayne County Airport Authority, or Third Circuit Court ends. Your employment at any and all of these employers must end before you are eligible for a distribution.
- You retire from your employer at the normal retirement age, as defined in your Collective Bargaining Agreement or Benefit Plan Document.
- You become permanently disabled. If you become disabled, you may be eligible to receive all of your vested account balance immediately. The amount you receive is subject to all applicable income taxes, but no penalties.
- Your death. Your beneficiary is entitled to your account balance when you die; they are responsible for all federal income tax imposed. Distribution upon death may also be subject to federal and state inheritance and estate taxes.
- If you separate from service before normal retirement age, you may be subject to an additional early withdrawal penalty tax if you receive a taxable distribution per your Collective Bargaining Agreement or Benefit Plan Document.
When any of the events listed above occur, you or your beneficiary will have several distribution options. It is important to understand each of the distribution options listed in your plan's Summary Plan Description before you make your decision. For assistance, please contact an Empower representative at 877-778-2100. You can also contact the Wayne County Employees Retirement System at eRetirement@waynecounty.com.
Keeping it in the plan
At the time benefits are payable, the amount of your vested account balance will determine how your account is handled. Refer to the schedule below:
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Your vested account balance
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Impact to your money
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$1,000 or less
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Paid in a lump sum, regardless of prior elections*
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Greater than $1,000
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Your money will continue to grow tax-deferred in your account
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* Standard 20% withheld
Directly rolling it over
You can choose to move or roll money over into another qualified retirement plan, a Traditional Individual Retirement Account (IRA), or Roth IRA. This allows your money to continue growing tax-deferred. Keep in mind, if you have not reached the age 59½, and you choose to move your money into a retirement account other than a 457 plan, subsequent withdrawals may be subject to a 10% early withdrawal penalty. This is based on our understanding of the tax law. You may wish to discuss this matter with your tax advisor. Because each situation is unique, neither we nor our representatives can provide tax or legal advice.
Having account balance paid in installments
You have the option to withdraw your account balance in a series of payments, in an amount over a period of time as determined by your Plan Document.
Lump sum
You may choose to take a full or partial lump sum distribution. A 20% federal income tax withholding may be applied.
ACCOUNT FEE
A record keeping fee of 0.085% (0.00085) per year is charged to participants invested in the plan. This fee is deducted in quarterly installments and is calculated using the quarter-end balance of the account balance.
