CCCS 403(b) FAQs
403(b) Plan Changes
Q: Why did CCCS make this change?
A: For two years CCCS has been reviewing our benefit offerings to ensure we are providing the options that best fit the needs of our workforce. Included in these reviews is an evaluation of our supplemental retirement offerings.
We heard from employees that there are too many choices, and from our enrollment in the various plans, the abundance of choices may be a contributor to employees not making a decision to enroll in a supplemental retirement savings plan.
Current participation in the 403(b) plans is very low. This limits our ability to negotiate better terms or enhance their value as a retirement savings vehicle. This led to CCCS’ decision to freeze the 403(b) plans effective June 30, 2025. CCCS will be implementing Roth options for the PERAPlus plans effective July 1, 2025, to ensure those currently taking advantage of a Roth plan will have that continued benefit through the PERA plans.
Q: Why did CCCS choose to freeze rather than terminate the 403(b) plans?
A: Most significantly, terminating the plans could have triggered an automatic full distribution of funds to all account holders. For many employees, this could have led to unintended financial consequences, such as tax liabilities or disruption to long-term retirement strategies. We understand that retirement planning is not one-size-fits-all, and our goal was to make the best decision for the majority of employees given the circumstances.
By freezing the plans instead of terminating them, your existing contributions remain intact and can continue to grow through compounding interest and market performance. This approach helps preserve the long-term value of your investment without forcing immediate action that may not be in your best interest.
Q: What happens to my current 403(b) plan now that it’s being frozen?
A: Once the 403(b) plan is frozen, all contributions will stop after the June payroll. Your existing funds will remain invested, and you will still be able to manage the investments in that account.
Q: Do I need to do anything to stop my 403(b) deductions?
A: No. Your deductions will be systematically ended after the June payroll. If you prefer not to make a June deduction, you will need to talk to your Human Resources Office about stopping your deduction by June 13, 2025.
Accessing 403(b) funds
Q: Can I Rollover my existing 403(b)?
A: It depends. You can Rollover your 403(b) balance if you have a qualifying event.
Q: What is considered a qualifying event?
A: Qualifying events include:
- Termination of employment (for any reason, not just retirement
- Retirement
- Reaching age 59½.
Q: Does discontinuing the 403(b) count as a qualifying event?
A: No. Qualifying events include termination from employment or if still working, age 59½.
Q: Does voluntary retirement count as termination?
A: Yes. If you completely stop working, this is considered a termination, and you may be eligible to withdraw funds.
Q: What else should I know about withdrawal from my 403(b)?
A: You’ll want to speak with your 403(b) provider about any surrender fees that may be applied before taking a withdrawal. These fees are separate from taxes and can apply depending on the terms of your account. While taxes are generally expected with distributions, surrender fees are an additional cost that can significantly affect how much you receive.
Before making any withdrawals—once you qualify—it’s important to confirm whether surrender fees apply and how much they might be. Be sure to get clear information from your provider so you can make an informed decision.
Contribution Changes & Deadlines
Q: Can I still make changes to my retirement plan contributions after open enrollment?
A: Yes. PERAPlus plans (401(k) and 457) do not have an open enrollment period. Contribution changes can be made at any time. Reach out to your Human Resources office regarding deadlines for processing changes.
Q: What is the deadline to enroll in a 401(k) or 457 to make a July contribution?
A: To ensure contributions begin in July:
- Enroll in the 401(k) plan by June 15
- Or if you already have an PERAPlus account, by July 17th for the July Deduction
- Enroll in the 457 plan by June 27 at 2:00 PM
Q: How do I start contributing to a 401(k) or 457 instead of a 403(b)?
A: Visit coperaplus.org to enroll in the PERAPlus 457 plan. To enroll in the PERAPlus 401(k) complete the PERAPlus 401(k) Contribution Authorization Form and turn it into your Human Resources office.
Q: Where can I see what I’m currently contributing to a 403(b)?
A: Contribution details appear on your paystub. Look for lines labeled:
- 403(b) MetLife – Dollar
- 403(b) MetLife – Percent
- 403(b) TIAA-CREF – Dollar
- 403(b) TIAA-CREF – Percent
- 403(b) VALIC – Dollar
- 403(b) VALIC – Percent
- Met Life Roth Dollar
- Met Life Roth Percent
- Valic Roth Dollar
- Valic Roth Flat Dollar
- Valic Roth Percent
403(b) vendor names have changed over the years and the coding on the paycheck may reflect the name of the vendor at the time the deduction code was established in Banner. You may also be familiar with the older name of the vendor who holds your 403(b) account.
- Valic became AIG and is now Corebridge
- Met Life is now Brighthouse
- TIAA was once TIAA-CREF