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401(k) & 401(k) Roth

Deferred Compensation Plans

for

GCCCD Auxiliary Benefit-Eligible Employees

The GCCCD Auxiliary offers voluntary 401(k) and 401(k) Roth deferred compensation plans for benefit-eligible employees. FYI, benefit-eligible employees also participate in a mandatory defined benefit retirement plan, CalPERS (California Public Employees Retirement System).

Basic Plan

The GCCCD Auxiliary is pleased to offer our benefit-eligible employees voluntary deferred compensation 401(K) and 401K Roth plans directly through Paychex, our payroll service provider.  This is the only option available for Auxiliary employees to establish a new deferred comp plan. 

Paychex Retirement Services offers approximately 18 mutual funds in the 401(k) and 401(k) Roth plans. The current list of funds is in the attached file, with performance info. The funds provide a range of investment options. You determine in which funds to invest, and in what percentage. You may change your fund selections, and percentage allocations at any time. No limit to the number of changes. All changes are done by you on the Paychex website.

The funds deferred from your paycheck are posted in your 401(k) and/or 401(k) Roth account(s) by the end of the 3rd business day after your paycheck day, the day you receive your monthly paycheck.

Enrollment Steps

You may enroll anytime in the 401(k) and/or 401(k) Roth plans. you may enroll online at

.  You may also contact the Paychex Employee Services Information Line at 877-244-1771 for more information. The GCCCD Auxiliary’s Paychex “Office/Client” number is 0082-0082R433.

When enrolling in a Paychex 401(k) or 401(k) Roth plan, please also complete a Beneficiary form (see attached) and send the original signed completed form to:

Samar Khazal, Accountant

GCCCD Auxiliary

8800 Grossmont College Dr.

El Cajon, CA 92020

(ph: 619-644-7745)

FAQS about the 401(k) and 401(k) Roth plans:

1. What forms are used to set up a 401(k) and/or 401(k) Roth plan?

A:  The forms are attached.  If you are reading this from an electronic file, please contact Samar Khazal (see contact info above) if you’d like us to send you the attached in paper form.

2. What is the Office/Client number for this 401(k) and 401(k) Roth plan?

A: 0082-0082R433

3. What is the deadline to set up a 401(k) or 401(k) Roth plan?

A:  You may setup your 401(k) plan at any time.  To make the payroll deduction, you should submit the enrollment form to Paychex by approximately the 20th of a month.

4. What is the max an employee may contribute, per calendar year, into a deferred comp plan?

A:  It is currently $16,500 per calendar year (or $22,000, if age 50 or over).

5. May an employee contribute to both the 401(k) and the 401(k) Roth?

A:  Yes.

6. May an employee transfer the balance in a 403b or 457 to this 401k?

A:  Yes.  Also, you may leave all or some of the funds in a 403b/457, e.g. transfer a portion of it from a 403b/457 to a 401k.

7. Who should an employee call to ask questions about enrolling in a 401(k) or 401(k) Roth?

A:  Contact the Paychex Employee Services Information Line at 877-244-1771. You may also contact Stan Schroeder (619-644-7684), Director of the GCCCD Auxiliary.

8. What funds are available in this 401(k) and 401(k) Roth plans?

A:  The current list of funds is in the attached file, with performance info.

9. When can I view my account on the Paychex website to confirm that last month’s contribution was posted to my account?

A:  Three business days after payday.

10.  How often may I change the mix of funds I use in my 401(k) and 401(k) Roth plans?

A:  As often as you want to;  just go to your account on the website and make the changes.

11.  Is this a voluntary deferred compensation plan?

 A:  Yes.  You may decide to participate, or not to participate.

12.  Will the CalPERS retirement plan continue?  Is it required?

A:  Yes, it will continue.  Yes, our contract with CalPERS requires that all benefit-eligible employees must participate in CalPERS.

13. After I enrolled, Paychex confirmed my enrollment info.  That message also stated that I had 90 days to decide which funds I wanted to invest in.  What happens if I don’t make that decision within 90 days?

A:  If you don’t select funds (at your Paychex website) within 90 days of enrollment, Paychex will activate an administrative feature in your plan.  Call Paychex (877-244-1771) for more info on this, if questions.

Who is Paychex?

Paychex is by far the largest provider of 401(K) and 401(K) Roth plans;  they provide 10% of all such employer plans.  They have a great website where you can view and manage the allocation of your assets among the mutual funds, an Employee Services phone line, and offer a range of investment options, which currently includes 18 funds, from such fund “families” as Vanguard (3 funds), Dreyfus, Fidelity, Royce, American Century, Federated, Nuveen, Parnassus, Perkins, Prudential, Schwab, and others.    

10-29-10

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