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AHRP Home Page > Retirement Plan Description > A Closer Look at Your Contributions
Below are a series of questions and answers to help you better understand your contributions. Questions and Answers
How is my employer basic contributions determined?Before the beginning of each year, your employer chooses a
target basic contribution formula for the next Plan year. However, this amount is only a target -- your employer
may contribute a different amount. The formula actually used to figure your basic
contribution will be determined at the end of the year for which benefits are being
figured. Take a look at the sample basic contribution formula for eligible employees. |
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The amount you contribute voluntarily depends on many factors, including your personal financial situation. The information in the Planning Guide may help you with your decision. The more you contribute, the faster your AHRP account will grow.
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Yes. Simply access your account through the AHRP Web site or call the AHRP Retirement Center anytime you wish to make a change. Otherwise, your initial election will stay in effect as long as you continue participating in the Plan. Also, you can stop making contributions to the AHRP-TSA at any time.
If you go on an unpaid leave, contributions from your paycheck will stop with your last paycheck and will resume at the same rate when you return from your leave.
You can continue contributing to other tax-sheltered annuities (TSAs) available through your employer. However, none of those contributions will be matched by your employer.
If you decide to contribute to other tax-sheltered annuities and the AHRP-TSA, the IRS contribution limits apply to the total amount you contribute to both TSAs. Also, there are rules about how to coordinate making elections to both TSAs. Your human resources department has information and may also direct you to your local TSA representative for information summarizing these rules. It's your responsibility to coordinate your contributions to the different TSAs affected by these rules.
If you choose to contribute to the AHRP-TSA, your employer will generally match some of your contributions, adding money to your AHRP account.
The amount of match you receive will depend on your employer's target matching contribution -- the amount your employer chooses to contribute in matching funds for that year. It will also depend upon the eligible position or job you hold. Most employers will match 50% of the first 4% of your gross pay.
To see how the matching contribution can work, let's look at an example. Let's assume your employer chooses to match:
50% of the first 4% of pay you contribute to the AHRP-TSA.
If you make $20,000 per year, and you decide to contribute 2% of your pay to the Plan--or $400 per year--your employer will match 50% of your $400 contribution. This means you would be contributing $400, and your employer would contribute $200 to your account.
If you make $20,000 per year, and you decide to contribute 6% of your pay--or $1,200 per year--your employer will match 50% of the first 4% you contribute. This means you would be contributing $1,200, and your employer would contribute 50% of $800, or $400, to your account.
Your employer calculates your annual basic and matching contributions after the end of each year. This information is sent to the AHRP. It is then posted to your account in the next weekly processing cycle and funded at prevailing market prices to the investments you have chosen.
AHRP-TSA contribution information is sent by your employer to the AHRP after each payday. It is generally processed and posted to your account by the next payday. Your employer sends the money to the AHRP trustee to fund your investment choices as soon as posting amounts are fully processed. Prevailing market prices are used on posting dates, thus providing you with averaging of your AHRP-TSA contributions in your account.
You may be able to "rollover" into this Plan amounts you receive from another employer's qualified plan or another tax-sheltered annuity.
"Rolling over" amounts means you are moving money from another plan into the AHRP. That money will be subject to the AHRP rules and restrictions.
Generally, you must move any rollover amounts to the AHRP within 60 days from the date you receive your balances from the other plan, in order to avoid having the withdrawal considered a "taxable event." In some cases, the money may be deposited into an IRA
(Individual Retirement Account) before you roll it to this Plan. You will need to provide records from your
previous employer before you may rollover amounts into the AHRP. You may arrange a direct rollover without the 60-day restriction. TSAs may be eligible for a direct transfer.
Please contact your human resources department or the AHRP Retirement Center for more information as soon as you are eligible for money from another plan. It is not necessary for you to be an active employee to be eligible for this provision.
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The value of your account is determined on a daily basis. The dollars in your AHRP account under the Plan are affected by both earnings and losses of the investments you choose.
Soon after the end of each quarter, you will be sent a quarterly statement showing your AHRP activity and balances. (You may always call
the AHRP Retirement Center to get the most current value of all your accounts in the
AHRP.) The amount you or your beneficiary receive is based on the value of your account on the day you request the distribution.
Back to Questions
Most administrative costs for such things as trustee fees, recordkeeping, Web site maintenance, quarterly statement preparation, newsletters, and informational booklets are paid for by AHRP Participating Employers. Each participant is charged $2.50 per quarter to help offset the cost of administering the plan.
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