TRB: Acceptance of Rollovers and Trustee-To-Trustee Transfers

Acceptance of Rollovers and Trustee-To-Trustee Transfers


Effective January 1, 2013 the Teachers’ Retirement Board (TRB) will change its policy regarding the acceptance of rollovers and trustee-to-trustee transfers from other Qualified Employer (401a) Plans, Profit Sharing (401k) Plans, and Deferred Compensation (403b and 457) Plans.  The change will not apply to rollovers from Individual Retirement Accounts (408 plans).  The change will apply to funds submitted by members under age 59½ for the purchase of an extra annuity from TRB which will increase the member’s monthly retirement benefit, or for any other reason other than to pay for the purchase of service. 

TRB currently accepts these funds from members who have submitted a Retirement Application to TRB with a retirement date in the current school year.  For example, an active member who submitted a Retirement Application in September, 2012 with a retirement effective date of July 1, 2013 could transfer funds to TRB immediately upon submission of the Retirement Application.  Our new requirement is that the member must have terminated employment with the employer who sponsors the plan.  The most significant impact of this policy revision will be upon active teachers under the age of 59 ½ who wish to transfer funds from their current employer’s 403b plan but who are not purchasing service.  We’ll now require that these employees have terminated their employment in order for us to accept these funds; for members who work for the entire school year, we’ll regard the last day of the school year as the date on which employment terminates.  We’ll accept these funds during the period of time from the termination of employment until the retirement date; we’ll return (uncashed) to the member checks that we receive prior to this time.

This can result in a very narrow timeframe during which we will accept these payments.  Members should be sure that the custodian of their funds is aware of this policy and complies with it.

Content Last Modified on 12/28/2012 11:08:37 AM