Effective March 18, 2024, Nassau County will provide a 401(a) Plan for all eligible COBA Employees/Retirees who fit the criteria listed below. The Plan, which is administered by Bencor, allows eligible COBA Members to contribute their Severance/Termination Monies into an IRS Qualified Retirement Plan.

Mandatory participation requirements for COBA Members:

- Be in the year of your 50th. Birthday

          OR

- Have at least 25 Years as a Correction Officer/IRS Designated Public Safety Position

- Have a $5,000 Minimum Termination Payout

Key Features include:

- You will be automatically enrolled in the program upon separation from service, as long as you fulfill the mandatory participation requirements.

-The County will make a contribution based on your calculated claim of Severance/Termination monies (235 Sick Days, 90 Vacation Days & Compensatory Time) into this qualified retirement account in your name.

-Separating Employees can permanently save up to 7.65% of Social Security and Medicare Taxes on contributions to the plan.

-Income taxes are deferred on contributions to the Plan until you withdraw the money from your account in the Plan.

-The Plan account is always 100% Vested and belongs to you.

- No Administrative Fees charged to your account

-Loans are available from your account (see attached documents for more info)

   -   The two-year lookback: If you Retire before 7/15/2024 and receive your Termination Payment before 10/15/2024, you could possibly be able to take advantage of the two-year lookback: $66,000 for 2023 and $69,000 for 2024.

   - Contributions to the 457 Plan: Consistent with the recently signed Memorandum of Agreement signed earlier this week, in which the County must pay Termination Monies within 60 days of separation, this agreement would now allow COBA Members to contribute additional funds into the 457 Plan “regardless of what time of year they retire”.  Note: There is a 75-day time limit to transfer into the 457-Plan (2024 Limits= $23,000, $30,500 if you are over 50 years of age and up to $46,000 if you are eligible for catch-up. Also, if qualified, all funds must be transferred into the 401(a)first and any remaining/available funds could be placed into the 457 Plan thereafter.

*Please note: If you choose the “three-year equal installment option”

 (in which payment is scheduled in the following January after separation and the following two Januarys after that), you will be only allowed to contribute into the 401(a) Plan in the 1^st. installment. Also, contributions to the 457 will have to be within 75 days of separation.

For further information you can click on link below, reach out to the Sheriff’s Department Human Resources Unit or feel free to give me a call.

Be safe,

Dennis Maurus

1^st. Vice-President

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                                                                                                                      401 (a) Plan Rollout Info Guide