National Security & Retirement Program (NSRP)

Retirement plans are complicated benefits that include many rules and regulations. For more detailed information please review your National Security & Retirement Program, Summary Plan Description (SPD). However, the links below give you highlights about the National Security & Retirement Program without being an official plan document. If you have any questions or concerns, please contact your on-site Prudent advisor.

Overview:

  • NSRP is an alternative to the federal Social Security program.
  • Employees may participate in either NSRP or Social Security while employed at Tri-City, but not both.
  • Deciding whether or not to participate in NSRP is a personal decision and neither Tri-City nor Prudent can advise participants on what is best for them or their family.
  • Please visit www.ssa.gov for additional information regarding Social Security benefits.
Eligibility
  • Benefited and Non-Benefited employees are eligible to participate in NSRP.
  • An enrollment form must be completed on or before the 90th day of employment or during Open Enrollment.
  • Participation begins on the first calendar day of the month after the 90th day of employment OR, if enrolling during Open Enrollment, on Jan 1st of the next plan year.

Annual Open Enrollment:

  • A participant may also elect to enroll or dis-enroll in NSRP during the annual Open Enrollment period.
  • After an initial enrollment in NSRP, a participant is permitted 2 additional elections to either dis-enroll or re-enroll, but only during the Open Enrollment period. The third election will be irrevocable.
Contributions

Contributions are made through pre-tax payroll deductions (instead of contributions being made to the federal Social Security program).

Employee Contributions:

  • Benefited employees contribute 6.7% of their eligible compensation up to an amount equal to 66.94% of the Social Security Taxable Wage Base. ($79,352 for 2016)
  • Non-Benefited employees contribute 6.7% of their eligible compensation up to an amount equal to the Social Security Taxable Wage Base. ($118,500 for 2016)
  • Contributions are made through pre-tax payroll deductions (instead of contributions being made to the federal Social Security program).

Employee Contributions:

  • Benefited employees contribute 6.7% of their eligible compensation up to an amount equal to 66.94% of the Social Security Taxable Wage Base. ($79,352 for 2016)
  • Non-Benefited employees contribute 6.7% of their eligible compensation up to an amount equal to the Social Security Taxable Wage Base. ($118,500 for 2016)

Employer Contributions:

  • Benefited employees: Tri-City will make a contribution of 4.5% of an employee’s eligible compensation up to an amount equal to 66.94% of the Social Security Taxable Wage Base. ($79,352 for 2016)
  • Non-Benefited employees: Tri-City will make a contribution of 0.8% of an employee’s eligible compensation up to an amount equal to the Social Security Taxable Wage Base. ($118,500 for 2016)
Vesting

Vesting refers to the ownership of the money contributed to your retirement plan.(i.e., you own the money in your account).

  • All Employee Contributions, Employer Contributions and all related earnings are immediately 100% vested.
Distributions
  • Because NSRP is a tax-favored retirement plan, distributions from NSRP can only be made upon occurrence of one of the following “trigger events:”
  • Severance from Employment, Retirement, or Death
  • The IRS requires minimum distributions (RMDs) from NSRP upon reaching the age of 70½.
  • Please consult a tax professional to determine the tax implications and the best options for you regarding RMDs or before taking any money out of NSRP.
  • Distribution/Withdrawal forms can be obtained from the Prudent on-site office or from Lincoln’s website.
  • Please contact your Prudent on-site advisor for more information.

Taxing of Distributions:

  • NSRP distributions are 100% taxable if not directly transferred to another eligible retirement plan or Traditional IRA.
  • Distributions will be taxed as ordinary income and the IRS will impose a mandatory 20% federal income tax withholding on all distributions.
  • Distributions from NSRP are not subject to a 10% early withdrawal penalty tax, regardless of age.

In-Service Withdrawals:

  • In-Service withdrawals are not permitted.

Leaving Tri-City:

  • Participants leaving Tri-City are welcome to keep their retirement savings in the Retirement Program, where they will continue to be invested and monitored just as if the participants were still employed by Tri-City.
  • Participants also have the option to (a) roll their account balance to a new employer plan (but please check with your new employer first), (b) roll it into a Traditional IRA or (c) take a distribution.
  • Please contact your Prudent on-site advisor for more information.

Rollovers:

  • NSRP does not accept incoming rollovers.
Loans
  • Loans are not permitted.