Special Pay Participant Forms
Please complete the form in a legible manner or use your computer to complete the form, then print the form and sign it. If you choose to sign electronically, a photo ID must also be included with the completed forms. The completed forms may be mailed, faxed, e-mailed, or uploaded to our website. See instructions on each form for more information.
Frequently Asked Questions for Special Pay Plan Participants
What is a Special Pay Plan?
A Special Pay Plan is a retirement plan for governmental employers. These plans include 401(a), 403(b), 457 and 3121 plans.
What funds are available to invest my money?
The investment options currently available to participants are on our website after you log into your account and select investment profiles. Fund performances are easily viewed by selecting any of the funds listed.
Can I change my investments? How often? Can I change my investments online? If I trade today, how long does it take to show up in my account?
Participant directed accounts allow for participants to change their investments at any time and as often as they wish. Participants may make investment changes online by selecting Transactions.
To change current investment elections (what funds your current deferrals will be invested), put the percentage you want your deferrals invested into next the fund choice under the New % column. The New % totals must equal 100%.
To rebalance your portfolio to your new investment elections, click on Transfer Funds. Under Transfer Type: select Rebalance Investment Based on New Allocation Percentages.
You may also transfer between investments through the Transfer Funds tab.
Trades typically take between 3 to 5 business days to complete and be updated on your online account.
To see my account online, what is my user ID and password? Can I change my password? How often is the website updated?
To login to your account, from our home page select Participant Login. Please contact our office directly if your Human Resource department has not provided your login information. Once you login, you can perform many functions such as changing your password, updating your personal information, checking your investment elections and tracking transaction history. For most plans, our website is updated daily.
How can I get a form? What form do I need?
Our forms are available on our website under Forms Library. There you will find access to the Distribution Election Form and the Beneficiary Designation Form. Each of the forms is designed to be filled out using your computer. Simply open the form you need, complete the form using your computer, print out the completed form, sign it and return it to us by fax at 919-942-2804 or mail to our address on the form.
How often will I receive a statement?
Based on your plan type, you will receive either a quarterly or annual statement.
What is a beneficiary? What is a primary or contingent beneficiary? How do I change my beneficiary?
A beneficiary is the person or entity named as the inheritor of property when the property owner dies. Primary beneficiary or beneficiaries inherit the property when the property owner dies. Contingent beneficiary or beneficiaries inherit the property if the primary beneficiary has died at the time the benefit is to be paid. To change your beneficiary online, select Personal Profile, then Beneficiaries. You can view your current beneficiaries, change the percentages for multiple beneficiaries or add or delete new beneficiaries. You may also complete a Beneficiary Designation Form.
How long do distributions take to process?
Distributions typically take between two to four weeks.
Is my distribution taxable?
Distributions from your Special Pay Plan are taxable unless the amounts are rolled over. A rollover occurs when you receive a distribution of cash or other assets from one qualified retirement plan and contribute all or part of the distribution within 60 days to another qualified retirement plan or traditional IRA. Rollovers are not taxable but are reportable on Form 1099-R.
Any taxable amount that is not rolled over must be included in income in the year you receive it. If the distribution is paid to you, you have 60 days from the date you receive it to roll it over.
Any taxable distribution paid to you is subject to mandatory Federal withholding of 20%, even if you intend to roll the distribution over later. State withholding may also apply if required by your state. If the distribution is rolled over, and you want to defer tax on the entire taxable portion, you will have to add funds from other sources equal to the amount withheld. You can choose to have your Special Pay Plan transfer a distribution directly to another eligible plan or to an IRA. Under this option, no taxes are withheld.
If you are under age 59 ½ at the time of the distribution, any taxable portion not rolled over may be subject to a 10% additional tax on early distributions. Consult your tax professional if you are not sure if the 10% penalty applies to you or if you think you qualify for an exception.
Can I have my distribution direct deposited into my bank?
Yes. The ACH Direct Deposit Authorization Agreement Form is included with the Distribution Election Form.
For your security, and to assure an accurate transfer of funds, complete the entire form in a legible manner and attach a voided check where indicated. The routing and account numbers on this form must be identical to the routing and account numbers on your voided check. The payer name on the voided check must match the plan participant’s name. If a voided check is not available, or if the account number or routing number provided on this form is different than on the voided check, include a letter from the bank or financial institution on their letterhead. Have the letter signed by an authorized representative of the bank and indicate the name of the account holder and provide the routing and account numbers to be used by Pelion Benefits, Inc. for ACH purposes.
How do I roll over my Special Pay Plan?
A participant may roll over their Special Pay Plan balance by completing the Distribution Election Form. Option 2 tells us who you want the check payable to, mailed to and your new account number. In order to be a non-taxable exchange, the balance must be transferred from trustee to trustee. Therefore, we cannot mail a roll over check to the participant’s address. The check must be payable to the successor custodian and mailed directly to them. We do not wire roll over money to successor custodians.
Rollovers may be made to a Traditional IRA account or Another Qualified Plan.
Traditional IRA accounts can easily be set up at any bank or rolled over into an existing IRA you may already own.
How can I update my personal information such as my address, e-mail or phone number?
Login to your account on our website and select the Personal Profile tab. Make the changes and submit.