Excess Benefit Plan
Plan History Purpose
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 You 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 you direct how your plan benefits are invested.
When You are Eligible to Receive Your Retirement Benefits
Within 60 days following your separation from service you will be required to take a full cash distribution of your NSHE Excess Benefit Plan account.
How Your Benefits Are Paid to You
Within 60 days following your separation from service you will be required to take a full cash distribution of your NSHE Excess Benefit Plan account. 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 with 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.