The County of Los Angeles 401(k) Savings Plan is a powerful tool to
help you reach your retirement goals. As a supplement to other County
retirement/pension benefits that you may have, this voluntary Plan allows you to
save and invest extra money for retirement . tax-deferred!
Not only will you defer taxes immediately, you will save money
consistently and automatically, have a variety of investment options to
choose from, and learn more about investing for a secure financial future.
Read these highlights to learn more about your Plan, and how simple it is to
enroll. And, if you have any questions, visit this Web site or call a Client
Service Representative at (800) 947-0845.
Enrollment Planning Guide and complete a Participant Enrollment Form indicating
the amount you wish to contribute and your investment option(s) selection.
Please sign the form and return it to the County of Los Angeles Service Center,
500 North Central Avenue, Suite 220, Glendale, California 91203 (Office Hours:
Monday through Friday, 8:30am to 5:00pm Pacific Time).
Your personal pre-tax contribution limit, effective on January 1st of each
year, is either the amount listed on Table A or 100% of Eligible Earnings as
defined by the Plan, whichever is less.
1) You may defer from 1% up to 100% of your Eligible Earnings in any one
2) All deductions must be made as percentage of your Eligible Earnings
and rounded up to the highest tenth of a percentage (e.g., 8.6% but not
3) From 2007 to 2010, the annual contribution limit will be indexed
to inflation. The increases can only take place in $500 increments, and may not
occur every year.
The annual increase listed above will apply to you automatically unless you
defaulted or elected into the "low" contribution limit option. If you made
contributions to both the Savings Plan and the Horizons Plan, the contribution
limit option that you previously elected will remain in effect - the "low"
election will remain an $8,500 annual limit and the "high" election will reflect
Table A annual limits. If you decide to change your contribution limit option,
you must submit a completed Contribution Limit Option Form. You can obtain a
form by calling KeyTalk® at (800) 947-0845. Your payroll deductions become
effective the month following the date you submit your completed Participant
Enrollment Form. Since your contributions to the Savings Plan are made in
pre-tax dollars, they are not included in the gross wages category on your Form
W-2 but will be reflected as a pre-tax deduction on pay receipts issued on the
15th of the month following a deduction.
To support your efforts to save for retirement, the County will match your
contributions dollar-for-dollar up to 4% of your monthly "compensation" as
defined in the Plan. To receive the entire match, you must contribute a dollar
amount equivalent to at least 4% of your monthly compensation to the Plan.
The money you personally contribute to the Plan is always 100% vested. The
matching contributions made by the County are vested as shown in Table
The Plan Administrative Committee invests the unvested portion of the
matching contributions, currently in the Stable Value Fund. You direct the
investment of vested matching contributions.
You can choose from fifteen investment options including three Pre-Assembled
Please see the fund profile sheets for more information on the available
investment options, located in the Fund Options section of this Web site.
Investment Option information is also available through KeyTalk® at (800)
947-0845, 2 which is available to you 24 hours a day, 7 days a week. You can
also view investment option prospectuses on this Web site or obtain one from
your Client Service Representative.
Great-West Retirement Services® will mail
you a quarterly account statement showing your account balance and activity
within your account. You can also check your account balance and move assets
between investment options on this Web and KeyTalk® at (800)
Use your Social Security number and Personal Identification Number (PIN) to
access either this Web site at or KeyTalk® at (800) 947-0845.*
move all or a portion of your existing balances between investment options
(subject to Plan rules/ fees)
change how future deferrals are allocated
change your deferral percentage
set-up custom transfers and automatic account rebalancing
The money you have invested in the Plan as well as your vested County
contributions can be withdrawn upon the following events:
death of participant
termination of employment with the County
You may also be eligible to access your money via a loan, in-service
withdrawal or hardship withdrawal.
LoansYou may have only
two loans outstanding at any time.
As an active participant, you may take out a loan
against the vested portion of your account if your vested account balance is
$2,500 or more. There are two types of loans available - general purpose loans
and real estate/home purchase loans (for the purchase of your principal
residence only). General purpose loans must be repaid within 5 years. Real
estate/home purchase loans must be repaid within 15 years.
Provided you meet the requirements
outlined below, you may be eligible for an in-service withdrawal. You may only
make two in-service withdrawals per calendar year.
If you have been a participant for 10 years, you may withdraw all or part of
your vested County matching contributions. If you have withdrawn all your
matching contributions and have reached age 59½, you may withdraw all or a part
of the money that you have contributed to your account. You must select the
specific dollar amount as well as the funds from which the money will be
All distributions from a qualified retirement plan that are eligible for
rollover but are not rolled over are subject to a mandatory 20% federal income
tax withholding. If you roll your full account balance directly into an IRA or
another qualified account that accepts such rollovers, no federal income tax
will be withheld.
If you are experiencing severe
financial difficulties, and you do not qualify for a Plan loan, you may apply
for a hardship withdrawal. There are severe restrictions on hardship withdrawals
under Internal Revenue Code rules. You may make a hardship withdrawal only if
you have immediate and heavy financial need caused by:
Hardship withdrawals will not be permitted for any other
- Medical expenses for you, your spouse, or dependents that were not
- Payment of tuition for the next semester or quarter of post-secondary
education for yourself, your spouse, or dependent,
- Purchase or construction of your principal residence, or
- The need to prevent imminent foreclosure or eviction from your principal
Any withdrawals and distributions from your account (except for loans) are
subject to ordinary income taxes. If you take a withdrawal or distribution
before age 59½, you may be assessed an additional 10% federal income tax
You have a variety
of payment methods to choose from - one is sure to meet your needs.
If your account balance is less than $5,000, you must take a lump-sum
distribution. If your account balance is $5,000 or more, you may elect to have
your distribution from the Plan paid to you in one or a combination of the
following payment methods:
Periodic payments made directly from your investment account not extending
for more than 15 years,
Annuity payments made by an insurance company,
A partial or full lump-sum payment of your entire account, or
You may roll your Plan assets into your new employer's Plan (if allowed) or
to an Individual Retirement Account (IRA).
If you select a combination of these options, you must specify at the time of
your selection how all funds are to be paid. For example, you may request to
receive $5,000 on your benefit commencement date and to receive the balance in
the form of an annuity. You may not request to receive $5,000 on your benefit
commencement date and then let Great-West Retirement Services® know at some later date how to pay out the balance of
For more details about the benefit payment options available to you, please
contact the County of Los Angeles Service Center.
Third-Party Administrator Fees
Great-West Retirement Services® third party
administrative (TPA) fee is deducted from your account in monthly
The TPA fee deducted from participant accounts reflect a subsidy that offsets
the actual cost of the third party administrative fee charged to the Plan. The
Savings Plan Administrative Committee determines annually the availability and
amount of the subsidy, contingent upon the Savings Plan reserve balance.
County Administration Fees
County administration fees
must be paid by Plan participants. These fees are based on the actual cost of
services provided by the County to the Plan. They may vary and are deducted
quarterly from each participant's account in proportion to the total Plan
Plan administration fees will be deducted from fund balances in this order:
- City National Bank Fund
- Stable Value Fund
- BlackRock Core Bond Portfolio
- PIMCO High Yield Fund
- Dodge and Cox Balanced Fund
- MSIF Trust Value: INST
- SSGA S&P 500 Flagship Fund
- TCW Concentrated Core Equities
- ICAP Equity Portfolio
- ICM Small Company
- T. Rowe Price International Stock Fund
- T. Rowe Price New Horizons Fund
- Aggressive Pre-Assembled Portfolio
- Moderate Pre-Assembled Portfolio
- Conservative Pre-Assembled Portfolio
Loan Initiation Fee
There is a fee of $75.00 for
initiating and maintaining a loan, which is subtracted from the net loan check
Fund Management Fees**
Some of the funds
available to you will assess a fund management fee. These fees are disclosed in
the prospectuses issued by the individual mutual fund managers and are netted
from the mutual fund earnings by the mutual fund companies prior to establishing
their share price.
The County has negotiated the following fund
re-allowances from the investment companies as listed below. This re-allowance
amount is reimbursed back to the Plan and credited to participant accounts with
assets in the funds shown in Table C.
For an explanation of re-allowances, please refer to the specific fund's
There are restrictions if you attempt to defer 100% of your
Eligible Earnings in any one month. Contributions to the LACERA or Judges
retirement plan and your flexible benefit program are taken out before Savings
Plan deferrals are made. You should also be aware that Savings Plan deferrals
take precedence over Horizons Plan deferrals - you should make an allowance in
your Savings Plan deferral for the dollar amount you plan to defer into the
*Access to KeyTalk® and the Web site may be
limited or unavailable during periods of peak demand, market volatility, systems
upgrades/maintenance, or other reasons. Transfer requests made by Web site or
via KeyTalk® received prior to 1pm Pacific Time on business days will be
initiated at the close of the business day. Transfer requests received after 1pm
Pacific Time on business days, any time on a non-business day, or on days when
the market closes early, will be initiated at the close of business the next
day. The actual effective date of your transaction may vary depending on the
investment option selected.
**Prospectuses contain information about a
particular investment option, including fees and expenses. Read them carefully
Withdrawals made prior to age 59½ may be subject to a 10%
federal income tax penalty. All withdrawals are subject to ordinary income
Investment options have been selected by the Plan
Administrative Committee. Securities, when offered, are offered through GWFS
Equities, Inc., a wholly owned subsidiary of Great-West Life & Annuity
Insurance Company and a broker/dealer member of the FINRA. For more information
about available investment options, including fees and expenses, you may obtain
applicable prospectuses from your registered representative. Read them carefully
before investing. Not for use in New York.