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Alaska Supplemental Annuity Plan The SBS-AP is a defined contribution plan governed by section 401(a) of the Internal Revenue Code. Your contribution to the plan equals 6.13% of your gross pay up to the current Social Security maximum. Your contributions are deducted from pre-taxed income and are matched by the state.
If the company goes bankrupt or cannot pay its bills, you may lose the compensation you deferred.
You can take out small or large sums anytime, or you can set up automatic, periodic payments. If your plan allows it, you may be able to have direct deposit which allows for fast transfer of funds. Unlike a check, direct deposit typically doesn't include a hold on the funds from your account.
The employer must adopt an irrevocable resolution to terminate the plan during a period that begins 30 days prior to closing and ends 12 months after closing, and the plan must be liquidated within 12 months after the resolution is adopted.
The State of Alaska 457 Deferred Compensation Plan (DCP) allows you to voluntarily set aside a portion of your income either before it is taxed or after it has been taxed.
Assets in a 457(b) plan can be rolled over into most other retirement accounts, including into a traditional IRA, a Roth IRA, another 457(b) plan, a 403(b), a 401(a) or a 401(k) plan.
The Bottom Line. If you have a qualified plan and have passed the vesting period, your deferred compensation is yours, even if you quit with no notice on very bad terms. If you have a non-qualified plan, you may have to forfeit all of your deferred compensation by quitting depending on your plan's specific terms.
The State of Alaska 457 Deferred Compensation Plan (DCP) allows you to set aside and invest a portion of your income for your retirement on a voluntary basis. It is designed to complement the Alaska SBS Supplemental Annuity Plan and the Alaska PERS/TRS Defined Contribution Retirement Plan.
A TDA is also known as a 403(b) account. This account offers employees the opportunity to make additional tax-deferred contributions outside their required contributions to their respective retirement plans (either PERS, TRS, or ORP). All University of Alaska employees are eligible to participate in the TDA.