As a part-time, seasonal or temporary employee of the Commonwealth of Massachusetts, or a Massachusetts local government employer, you are required to participate in the Commonwealth of Massachusetts Deferred Compensation Plan ("Plan"). The Plan is an alternative to Social Security coverage as permitted by the federal Omnibus Budget Reconciliation Act of 1990. By virtue of participating in the Plan, you, as an OBRA employee, are not subject to tax under the Old Age, Survivors and Disability Income portion of FICA (the Federal Insurance Contributions Act). You will be subject to the Medical Insurance portion of FICA.
As an OBRA employee, you must contribute at least 7.5% of your gross compensation per pay period to the Plan. Your contributions are made on a tax deferred basis. This means that your contributions are not subject to federal or state income tax at the time they are made. You will be taxed on the value of your contributions (including any earnings) when you receive a distribution of your benefits from the Plan.
Your human resources or payroll center representative will provide you with the necessary form (Participation Agreement - Mandatory OBRA Contributions) to complete and return to them. They will forward this form to Aetna Financial Services (the administrator of the Plan).
If you wish, you may make additional contributions ("voluntary contributions"), above the mandatory contribution level of 7.5% of compensation per pay period. The total of your mandatory and voluntary contributions is subject to the Plan's maximum deferral limits set by the federal government (generally, the lesser of $8,000 or 25% of gross compensation). For information regarding voluntary contributions, contact your local Aetna office (toll-free) at 1-877-721-5894. Select the local Aetna office that is closest to your place of employment (not closest to your residence) -
Your mandatory contributions are automatically invested in The Income Fund. You may not transfer your mandatory contributions out of The Income Fund. Any voluntary contributions that you elect to make can be invested among the Plan's available investment options and are freely transferable between options in accordance with the terms of the Plan.
Distribution of your Plan benefits can only be made upon your:
Separation from service occurs because of your voluntary or involuntary termination of employment. A leave of absence is not a separation from service.
Federal regulations define an unforeseeable emergency as a severe financial hardship resulting from illness, accident or property loss to you or your dependent resulting from circumstances beyond your control. Payment from the Plan can only be made to the extent that your hardship expenses are not covered by insurance or funds available from other sources.
When you separate from service or die, your benefits will be payable to you or your beneficiary in a lump sum. You may elect to receive your distribution immediately upon separation, or postpone the payment of your benefits to a later date. If you elect to defer benefits, your election will be irrevocable (it cannot be changed). If you fail to make your election by the required time (60 days), your balance will be paid to you in a lump sum. Your benefits will become taxable when received.
Please keep your address and beneficiary information current so that Aetna can service your account and send you regular account statements. To update your address or inquire about your account, contact our Customer Service Representatives at 1-800-584-6001, 8:00 a.m. to 10:00 p.m. Eastern Time. (Note: Due to the transition of Plan information to Aetna, representatives at this phone number will not have access to Plan data before June 26, 2000.)
Be sure to visit our website at www.aetnafinancial.com/custom/mass for fund performance and an overview of The Income Fund.