11-P-013 New VTSA Roth 403(b) After-Tax Investment Option

DATE:	November 10, 2010
SUBJECT:	New VTSA Roth 403(b) After-Tax Investment Option
EFFECTIVE DATE:	January 1, 2011
CONTACT:	Earl Brynds	(785) 296-5376	Earl.Brynds@da.ks.gov
APPROVAL:
SUMMARY:	New Plan Type, Benefit Plans and Deduction Code for Voluntary Tax Sheltered Annuity Roth 403(b) Investment Option

The Kansas Board of Regents (KBOR) has approved the recommendation to add a Roth 403(b) after-tax investment option as part of the voluntary retirement plan (VTSA). Only Regent university employees as well as employees of the KBOR office (agency 561) will be eligible to participate in the new Roth after-tax option. Eligible employees will have the flexibility to participate in either the current before-tax option, the new after-tax option, or both options concurrently. Employee contributions made under the after-tax investment option will not be reported on the employee’s W-2 per IRS regulations. Seven investment companies who currently offer the before-tax option will also offer the Roth 403(b) after-tax option and are listed in the table below.

To implement the new after-tax option, a new benefit plan type, a new payroll deduction code and new benefit plans will be added to SHARP effective for the payroll period beginning December 12, 2010 and ending December 25, 2010, paid January 7, 2011.

The new Benefit Plan Type, VTSA deduction code and benefit plans are:

PLAN TYPE	DEDUCTION CODE	DESCRIPTION	SHORT DESCRIPTION	BENEFIT PLAN	BENEFIT PLAN DESCRIPTION	INVEST OPTION
4T	VTSART	Voluntary TaxSheltAnnuity -Roth	VTSAnnRoth	VTR009	VTSA-Roth After-Tax	009-ING Voluntary
4T	VTSART	Voluntary TaxSheltAnnuity -Roth	VTSAnnRoth	VTR321	VTSA-Roth After-Tax	321-Ameriprise Financial Services, Inc
4T	VTSART	Voluntary TaxSheltAnnuity -Roth	VTSAnnRoth	VTR413	VTSA-Roth After-Tax	413-Lincoln Investment Planning, Inc
4T	VTSART	Voluntary TaxSheltAnnuity -Roth	VTSAnnRoth	VTR416	VTSA-Roth After-Tax	416-Lincoln National Life Ins Co
4T	VTSART	Voluntary TaxSheltAnnuity -Roth	VTSAnnRoth	VTR655	VTSA-Roth After-Tax	655-Security Benefit Life Ins Co
4T	VTSART	Voluntary TaxSheltAnnuity -Roth	VTSAnnRoth	VTR695	VTSA-Roth After-Tax	695-Teachers Ins Annuity Assoc
4T	VTSART	Voluntary TaxSheltAnnuity -Roth	VTSAnnRoth	VTR769	VTSA-Roth After-Tax	769-AIG Variable Annuity Life Ins Co

The Department of Administration is responsible for making the necessary updates to the SHARP payroll system and for remitting these new VTSART payroll deductions for employees of the KBOR office (agency 561). Regents’ institutions are responsible for ensuring that these changes are made in their respective systems effective with the payroll period noted above and for remitting these new VTSART payroll deductions for their impacted employees.

KEO:NTR:ewb

« Back