Excess benefit plan | Retirement | Benefits & Well-being | BCN HR Shared Services

IRS regulations limit the extent to which pension plan participants can benefit from these plans. These limitations reduce the amount of benefits that some highly paid employees are able to accumulate from the amounts they might otherwise accumulate in the absence of the limitations. The Excess Benefits Plan was created in 2000 specifically for employees in this situation. These employees automatically participate in the excess benefit plan when they reach the benefit limits imposed by the IRS.

How to participate

A credit will be credited to your account equal to the benefit you would have received in the RPP if there had been no limitation on benefits reduced by the actual benefit you received in the RPP. You control how your plan’s benefits are invested in the excess benefit plan.

Eligibility to receive your retirement benefits

You will be required to make a full cash distribution from your NSHE Excess Benefits Plan Account within 60 days of your termination of employment with NSHE.

How the benefits are distributed

The balance distributed to you will include amounts contributed under the Plan, including gains and / or losses, if applicable. You will receive a W-2 form which will reflect the distribution. To comply with tax laws, the additional federal payroll tax rate of 25% will be withheld along with state taxes based on your registration address.

Teachers Insurance and Annuity Association of America (TIAA) serves as the record keeper for the NSHE Excess Benefits Plan:

Visit TIAA.org Call 1-800-732-8353

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