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All employees of the Veterans Administration and their respective spouses, and the following family members: grandparents, parents, children over the age of 21 and their respective spouses are eligible to participate in this plan. Call IPC for the family member enrollment form. What is the minimum contribution and cost to participate in this supplemental retirement plan? There is no mandatory minimum contribution amount and there are no administrative fees. Why was Lincoln National Life Insurance Company Selected? Lincoln Life has a history of outstanding investment performance and is a leader in the industry with over 85 years' experience, assuring us of both expertise and unquestioned reliability. Lincoln Life's financial strength: A by A.M. Best which is ranked Lincoln Life "excellent", as third highest of fifteen. (These ratings reflect claims paying ability but are not a guarantee of future performance). What is the Return? All 2000 contributions will receive no less than 5.9% guaranteed through December 31, 2001. For contributions credited during 2000, an interest rate will be declared each quarter and contributions received and credited during a particular quarter will receive that interest rate until December 31, 2001. For 2001, a guarantee rate will be declared each quarter on 2000 contributions but can be no less than 5.9%. You begin to earn interest upon receipt of your contribution by Lincoln Life which will be forwarded from the custodian no later than 7 working days following deposit. Withdrawals You may request, either in writing or by phone, withdrawal forms from the Plan Administrator (IPC). For forms returned to IPC by the 20th of the month, withdrawals will be processed as of the last calendar day of the month. What are IRS penalties for premature distribution? Generally, distributions received prior to age 59 1/2 that are not due to death, disability, transfer or rollover are subject to a 10% Penalty Tax as follows: (1) Traditional IRA - on the full amount withdrawn; (2) Non-Qualified Deferred Annuity - on interest earnings only. (3) Under a Roth IRA, some withdrawals may be penalty-free and some may even be tax-free. However, the combination of several factors, including your age, whether the account has been open for at least five tax years, the purpose of the withdrawal and whether the Roth IRA was converted from a Traditional IRA affect the taxability. Consult your tax advisor for more details. You may purchase an annotate based on your life expectancy prior to age 59 1/2 and no penalties will be imposed. What is the surrender charge from the funding carrier for premature distribution? There is a 5% surrender charge on withdrawals (including transfers and rollovers) if you have been a Plan Participant for less than 10 years under the Lincoln Life contract. This charge will not be assessed if the Participant is (1) 59 1/2 and retired or (2) disabled or (3) deceased. Principal is guaranteed by the funding carrier. Guarantee is based on continued claims paying ability of the insurer or the ability of the company to meet its financial obligations. Enhanced plan features You may withdraw up to 50% of your accumulated interest earnings once per year (without surrender charge) for years 1991 or later. Each lump sum contribution of $15,000 or more per participant that you make in 1999 will be credited with an additional .20% for 1999. These features are subject to change annually on January 1. THE SECOND QUARTER RATE IS 6.4% ON ALL CONTRIBUTIONS RECEIVED BY JUNE 20, 2000. CALL THE PLAN ADMINISTRATOR FOR SUBSEQUENT QUARTERLY RATES. THIS PLAN HAS A MINIMUM GUARANTEE OF 5.9%* THROUGH DECEMBER 31, 2001. Minimum CONTRACTUAL Guarantee for the Supplemental Retirement Plan is 3.5%. States interest rates are the effective annual rate. Daily compounding rates are used to equal the rate. Lincoln Life form number is 20880. *on contributions credited during 2000. |
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