401(a) Money Purchase Pension Plan
The Money Purchase Pension Plan (MPPP)--401(a) is a retirement plan for employees of AURA. The retirement plan is a part of AURA’s total compensation package and is intended to help provide retirement income to its employees.
As a Regular Full-time or Regular Part-time AURA employee you are eligible to participate in the 401(a) retirement plan. Employees may participate in the Plan upon date of hire.
The 401(a) Plan is funded entirely by employer contributions. AURA will contribute on a biweekly basis an amount equal to 10% of your base salary for the pay period. Employees are immediately vested at 100%. Upon completion of employment, you may elect: (1) to leave the money on deposit and withdraw it later in the form of annuity payments or cash (except TIAA as described below); (2) or you may elect to receive it at the time of termination, with certain tax implications.
There are two investment companies that you have the option of selecting to invest with: Fidelity Retirement Services and Teachers Insurance Annuity Association/College Retirement Equity Fund (TIAA/CREF.) You may select from the funds offered within each company’s plan and reallocate among the funds according to the terms of the Plan. If you decide at a later time to have funds deposited with the other company, you have flexibility; (funds deposited with TIAA/CREF’s Traditional Annuity accounts may only be transferred or withdrawn in ten annual installments).
To enroll in the program, you must complete the Money Purchase Plan Enrollment Form and the Fidelity or TIAA/CREF Application Form and return to the Human Resources Office.
You have 31 days from your date of eligibility to make your investment company selection. After 31 days, your retirement company election will automatically default to Fidelity Investments and your investment allocations will be made to the applicable Fidelity Freedom K® Fund.
This is only a summary of the Plan, for more information regarding each company’s provisions and enrollment documents please contact the Human Resources Office.
Finally, participation in this Plan provides certain tax benefits and liabilities. We suggest you consult your tax professional for advice.