Retirement Plan

EMPLOYER PAYS 100%

The Lay Pension Plan provides a benefit to eligible lay employees based on salary and the number of years of credited service. The plan is designed to help employees prepare for retirement. Combined with Social Security benefits and savings or investments, the Plan will help to meet personal living expenses during retirement.

Eligibility
Regular, full-time lay employees of parishes, schools and participating institutions in the Diocese. Ordained priests and religiously professed Brothers and Sisters are not eligible for the Lay Employee Pension Plan.

Transferring
Transferring from one participating employer to another within the Diocese does not change an employee’s “Date of Hire,” as long as there is no break in service.

Vested Pension
An employee may leave the Diocese with a “Vested Pension” – the right to future benefits – after five years of continuous, full-time service. Note: As of July 1, 1998, a participating employee, prior to completing 5 years of continuous service, may incur a break in service up to 36 months without the loss of credited service.

Spouse
The spouse of a deceased, vested employee may apply for a surviving spouse benefit on the deceased employee’s normal retirement date, age 65. A surviving spouse benefit is the amount that would have been paid (based on service to the date of death) if the employee had elected a 50% survivor annuity on the employee’s normal retirement date.

Distribution
The plan is administered by Gallagher Retirement Services. All contributions to the plan are held in a Trust Fund and are not eligible for distribution until age 55. Additional details can be found in the Summary Plan Description.

Contact
Gallagher Retirement Services
844.605.1386
diocese.kc.st.joseph@ajg.com

EMPLOYEE PAYS 100%

You may choose to invest in a 403(b) program. All lay employees full-time and part-time are eligible to participate in the 403(b) plan. Many investment options are available through AIG, and contributions are deducted from your paycheck. Your Creative Planning representative will advise you as needed, including investments, retirement planning and enrollment.

Traditional 403(b)
Traditional 403(b) plans are similar to a 401(k) plan, and contributions are deducted before Federal and State income taxes.

ROTH 403(b)
You may contribute after-tax money to the Roth 403(b) that allows tax-free withdrawals of principal and interest.

What does a 403(b) plan offer?
• Automatic payroll deductions to help you make saving a habit
• Reduced taxable income, through pre-tax contributions
• Long-term savings and growth potential across a variety of investment options
The tax advantages, plus plan features and benefits, make a 403(b) plan with Principal® an ideal way to help accumulate funds for your retirement. And Principal® brings you the expertise, investment options and personal services to help keep things simple.

Pretax contributions
When you participate in a 403(b) plan, you contribute by convenient payroll reduction before federal income tax withholding is calculated. This helps reduce your currently taxable income so you can save dollars for retirement that otherwise would have gone to pay income taxes. Depending on the terms of the plan, you may contribute up to 100% of your annual includible compensation, up to $23,500 in 2025. You can contribute an additional $7,500 in 2025 if you are age 50 or older.

Tax-deferred accumulation
Current federal income taxes on all contributions, interest and earnings in your 403(b) plan are deferred until withdrawal, usually at retirement. Tax-deferred earnings, coupled with the power of compounding, can provide greater growth than might be possible with currently taxable savings methods. Remember that income taxes are payable when you withdraw money from your account. And since retirement accounts should be considered long-term investments, federal restrictions and a 10% federal early
withdrawal penalty may apply to withdrawals prior to age 59½.

Investment flexibility
Principal® offers an array of investment options from well-known investment managers. This provides the flexibility you might need to design a program tailored to your individual needs. Keep in mind that investment values in the variable options will fluctuate so that your investments, when withdrawn, can be worth more or less than the original cost. Remember all investment involves risk, including possible loss of principal. Your financial advisor can assist in choosing the options that will match your long-term goals.

Tax-free loans
Tax-free loans, available under some employer plans, enable you to borrow against a portion of your accumulated account value, subject to certain limitations, without permanently reducing your account balance. Defaulted loan amounts (not repaid on time) will be taxed as ordinary income and may be subject to a 10% federal early withdrawal penalty if you are under age 59½.

Access to your contributions
Generally, depending on your employer’s plan and the investment option, your account contributions can be distributed in any of the following events:
• Age 59½
• Severance from employment
• Your death or disability
• Financial hardship (no employer contribution)
Again — a 10% federal early withdrawal penalty may apply to withdrawals prior to age 59½.

Changes to contribution amount can only be made during:
• Open Enrollment in late October (Effective Jan 1)
• Semi-annual enrollment in June (Effective July 1)

Personalized investment advice
Our plan also includes personalized investment advice from licensed advisors at Creative Planning. Whether it’s determining how much to save or which investment options to utilize, help is just a phone call or email away.

For first time enrollments or information on investment options, contact Creative Planning 403(b) team:
Toll-Free: 1-866-427-4015                                               Jay Jasnoski, AIF: 913-955-3607
Email: 403b@creativeplanning.com                          Email: jay.jasnoski@creativeplanning.com