Excess benefit plan
IRS regulations limit the extent to which participants in retirement plans can benefit from those plans. These limitations reduce the amount of benefit that certain highly paid employees are able to accumulate from amounts they might otherwise be able to accumulate absent the limitations. The Excess Benefit Plan was created in 2000 specifically for employees in this situation. Those 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 made to your account equal to the benefit you would have received in the RPA had there been no limitation on benefits reduced by the actual benefit you received in the RPA. You direct how your plan benefits are invested in the Excess Benefit Plan.
Eligibility to receive your retirement benefits
You will be required to take a full cash distribution of your NSHE Excess Benefit Plan account within 60 days following your separation from employment with NSHE.
How benefits are distributed
The balance distributed to you will include the amounts contributed under the Plan, inclusive of earnings and/or losses, if any. You will be issued a Form W-2 that will reflect the distribution. To comply with tax laws, the federal supplemental wages tax rate of 25% will be withheld along with state taxes based on your address of record.
Teachers Insurance and Annuity Association of America (TIAA) serves as a record keeper for NSHE's Excess Benefit Plan:
