Aldine ISD 401(a) Matching Plan for Retirement Savings
Plan Highlights

Introduction

Effective September 1, 2000, Aldine Independent School District established an employer-paid supplemental 401(a) retirement plan, which is called the PARS 401(a) Matching Plan for Retirement Savings. Employer-paid contributions are made to the Plan on behalf of eligible employees and accumulate with earnings on a tax-deferred basis.

The Plan is designed to encourage retirement savings in that employer-paid Plan contributions are determined by what the employee has voluntarily contributed to their 403(b)/457 salary deferral program, providing employees an incentive to continue or increase salary deferrals to their 403(b)/457 program. The Plan is also designed to encourage a low level of employee absenteeism by providing an additional employer-paid contribution on behalf of those eligible employees that attain EXCELLENT or PERFECT attendance.

Effective September 1, 2006, Aldine Independent School District added a feature to the Plan whereby employees who are vested in their accounts as of August 31, 2006, or thereafter, can choose to self-direct and manage investments in their own account by selecting from investment options determined by the District and the Investment Advisor to the Plan, TCG Advisors, LP. Along with the ability to manage their own account, employees will have the option to choose from three professionally managed investment portfolios, in addition to the Wells Fargo Stable Return Fund. If an employee is vested and chooses not to participate in the participant directed investment program, his or her account will automatically be invested in the Wells Fargo Stable Return Fund. Employees who become vested during any Plan Year can participate in the participant directed investment program on September 1 following the date on which they became vested in their account. Please note that even though participants may be vested on September 1, account reconciliations will take place on or around September 30, at which time accounts may be accessed.

This Plan Highlight sheet provides a brief summary of how employees can participate in the Plan. For more detailed information, please contact the PARS Administration Department at (866) 708-3777 to obtain a Plan Summary. Please note that this Plan is administered separately from your 403(b)/457 program.

Employer Contributions

Aldine ISD will make contributions to the Plan on behalf of each eligible employee who is employed by Aldine ISD on the last day of the Plan Year, as follows:

(a) Base Contribution: the District will match 100% of employee’s 403(b)/457 salary deferrals within the Plan Year, up to a maximum of one-half of a percent (0.5%) of gross compensation.

(b) Excellent Attendance Supplementary Contribution: employees with “Excellent Attendance” will receive an employer-paid contribution, in addition to the Base Contribution, equal to 100% of employee’s 403(b)/457 salary deferrals within the Plan Year, up to a maximum of one-half of a percent (0.5%) of gross compensation. “Excellent Attendance” is defined as one-half (1/2) to two (2) days of absence.

(c) Perfect Attendance Supplementary Contribution: employees with “Perfect Attendance”, will receive an employer-paid contribution, in addition to the Base Contribution, equal to 200% of employee’s 403(b)/457 salary deferrals within the Plan Year, up to a maximum of one percent (1.0%) of gross compensation. “Perfect Attendance” is defined as zero (0) days of absence.

Employee Contributions

No Employee contributions are permitted in this Plan.

Plan Eligibility Requirements

Employees are eligible to participate in the Plan if he or she is:

(a) an employee of Aldine Independent School District; and
(b) a participant in the Texas Teacher Retirement System (TRS).

Account Ownership (Vesting)

An employee shall be vested (have 100% ownership) in his or her account after attaining six (6) credited years of service with the District. Employees that retire under the rules of TRS during their sixth year of service with the District shall become vested in their account. An employee shall receive credit for one (1) year of service with the District for each year that he or she meets the eligibility requirements of the Plan.

The vesting schedule for the Plan is as follows:

0-5 Years of Service         0% Vested
6+  Years of Service     100% Vested

Plan Year

A Plan Year is defined as the consecutive twelve-month period beginning on September 1 and ending on August 31.

Benefit Payments

The vested portion of the employee account is available for benefit distribution upon the participating employee’s retirement, termination of employment, permanent disability or death.  Loans and Hardship Withdrawals are not permitted under the Plan.   

For Additional Information

Additional questions about the Plan should be directed to PARS.  Participants are encouraged to contact the PARS Administration Department with any questions at (866) 708-3777.