The PERSI Choice 401(k) Plan is a voluntary PERSI retirement investment account available to PERSI-eligible employees. This is a voluntary supplemental option to your PERSI Base retirement plan. It contains any gain sharing contributions you may have received in the past, any voluntary contributions you make, any rollovers you request from other plans as well as the earnings on those funds. Your Choice 401(k) Plan is a Defined Contribution plan, meaning the amount you receive at retirement is based on the contributions and earnings in the plan.
PERSI Choice Highlights
You elect how much of your pay to defer to your account. This could be a percentage of your pay, in whole percentage amounts from 1% to 100%, or a whole dollar amount. The maximum allowable contribution for 2016 as determined by the IRS is $18,000. However, if you will be age 50 or older during 2016, you may make additional catch-up contributions of $6,000 to the Choice 401(k) Plan.
You are able to invest your contributions among several investment options. If you choose not to direct your contributions, they will be directed automatically to the PERSI Total Return Fund*, which is invested the same way that the PERSI Base Plan is invested, making it a highly diversified fund. You can view a full list of the PERSI Choice 401(k) investment options. We recommend that you consult a tax or financial advisor to determine which choice or mix or choices would be right for your individual situation.
Your full account balance is available to you when you retire, end your employment with a PERSI-participating employer, or become totally disabled (subject to income tax consequences and a potential 10% early withdrawal penalty). In the event of your death, your beneficiary(ies) will be entitled to the full value of your account.
Depending on your circumstances, you may choose from a number of distribution options.
In order to begin a monthly contribution to your PERSI Choice 401(k) account, you can request an enrollment kit from this link to the PERSI Website. Your completed PERSI Choice 401(k) Salary Reduction Agreement form can be delivered directly to the payroll office at the DSC.