About Your Plan
The Valdosta City School District Retirement Plan offers a variety of funding options, including an annuity and mutual funds.
Available Funding Options
Strategic Value Annuity
HintMutual Fund Select Portfolios
HintMetLife Financial Freedom Select®
HintThe Strategic Value Annuity (SVA), also referred to as the Fixed Annuity, is a deferred fixed annuity that provides security while earning current income at a rate guaranteed by the financial strength and claims-paying ability of Brighthouse Life Insurance Company. Some of the key features include:
- Guaranteed, fixed rate of return
- Preservation of principal*
- Low exposure to volatility of the markets
- Beneficiary protection
The Mutual Fund Select Portfolios (“MFSP”), a mutual fund platform offered by Metropolitan Life Insurance Company (“MetLife”). MFSP allows you to invest in mutual funds by selecting from a list of mutual funds chosen by your employer (or a third party appointed by your employer).
MetLife Financial Freedom Select (MFFS) is a variable annuity1 issued by Metropolitan Life Insurance Company to provide a retirement product for employees participating in the Valdosta City School District 403(b) Retirement Plan.
Frequently Asked Questions
You are eligible to participate in your plan effective immediately.
The Internal Revenue Code limits the amount you can contribute in salary reduction dollars each calendar year. The federal general limit is $23,000 for 2024. If you make Roth contributions, then the general limit and the catch-up limits apply to all salary reduction contributions, whether allocated to pre-tax amounts or after-tax Roth amounts. Additional limits on contributions may be applicable for certain "highly compensated employees."
If you are age 50 or over, the general limit contribution amount may be increased by an additional "catch-up" contribution of $7,500. After 2024, the general limit and the catch-up contribution may increase each year in accordance with a cost of living adjustment. Elective contributions generally may not exceed 100 percent of your compensation and there is an overall limit on aggregate contributions (including employer and employee contributions) that can be made to your employer's plan. If you have questions about these limits, please contact your employer.
Additional catch-up contributions under a 403(b) plan may be available for employees who have completed at least 15 years of service with certain eligible employers (e.g., schools, healthcare). The additional 403(b) life-time catch-up limit is $15,000, the catch-up amount that can be contributed in any one year may not exceed $3,000, and the catch-up amount for any year further depends on the years of service and the amount of contributions in prior years. Elective contributions generally may not exceed 100 percent of your compensation and there is an overall limit on aggregate contributions (including employer and employee contributions) that can be made to your employer's plan. If you have questions about these limits, please contact your employer.
If you have an existing retirement plan account with a prior employer or a traditional IRA, you may be able to roll over all or some of that account into this plan once you enroll. Or, if you have a retirement plan account with your current employer that you are no longer contributing to and your plan permits, you may consolidate those assets into this new plan as well.
Loans are permitted. The amount you may borrow is limited by rules under the Internal Revenue Code, your employer's plan, and must be repaid within five years unless used for the purchase of a primary residence. All loans will be based on your account balance. Please note, these loan limits apply on a combined basis to the highest loan balance in the past year under all retirement accounts with the same employer. If you have any questions, please contact your employer.
Under Internal Revenue Code limitations, the maximum allowable outstanding loan balance is the lesser of 50% of your vested plan account balance or $50,000. Your remaining account balance secures your loan. Please note, these loan limits apply on a combined basis to the highest loan balance in the past year under all retirement plan accounts with the same employer. Your employer's plan may have additional restrictions. If you have any questions, please contact your employer.
Since your plan is designed primarily to help you save for retirement, the Internal Revenue Code (IRC) has placed restrictions on when money may be withdrawn from your plan account before you retire. Money may be withdrawn from your plan account under the following circumstances, in accordance with your employer's plan document:
• Termination of Employment
• Disability (Subject to IRC requirements)
• Death
• In-Service Withdrawals (As defined by your plan)
• Hardship (Subject to IRC requirements)
Always consult your tax advisor or investment professional about the income tax consequences of any withdrawals. Ordinary federal income taxes generally apply (unless distributed from Roth accounts qualifying for tax-free distributions). State income taxes may also apply. Distributions before age 59½ may be subject to an additional 10 percent tax penalty, unless an exception applies.
For more details regarding fees and charges, please refer to the SVA prospectus and the MFFS brochure and prospectus (the links to these documents are above).
For MetLife Financial Freedom Select:
A $30 annual contract/certificate fee is deducted on a pro rata basis. This fee will be waived if: (1) Account balance exceeds $25,000, or (2) purchase payments exceed $2,000 within the last 12 months (fee not deducted from the Fixed Interest Account).
There is an annual Separate Account charge: • B Class: 1.15% • L Class: 1.30% • C Class*: 1.45%
Annual Separate Account charges for American Funds funding options are an additional 0.25%. Additional investment-related fees and expenses will apply to the selected funding options and optional death benefit.
Withdrawal charges2
Maximum surrender charge schedule shown; state variations exist for CT and MA. The following withdrawal charges apply to the amount withdrawn from the account balance based on the age of the employee’s account.
12-year withdrawal charge is a maximum of 9%
For Strategic Value Annuity:
For participant allocations in the SVA: If Valdosta City School District determines the need for a partial or full surrender of the SVA, such as moving to another retirement service provider, a surrender charge of 5% of the cash value may apply and will be deducted as a percentage of the amount withdrawn. In that situation, a market value adjustment may also apply. There are no surrender charges or market value adjustments however for withdrawals on participant-initiated transactions on account of your retirement, death, or separation from service.
For more details regarding fees and charges, please refer to the SVA prospectus and the MFFS brochure and prospectus (the links to these documents are above).
For Mutual Fund Select Portfolios:
An annual plan administrative fee of 95 basis points (or, 0.95%) on Fund assets in your plan account will be charged to your Mutual Fund Select Portfolios (MFSP) account in quarterly installments. This fee may be offset by Fund compensation MetLife* receives quarterly with respect to plan assets. If this is the case, your MFSP account will be charged the administrative fee and credited with the Fund compensation received by MetLife.
1 There is no additional federal income tax benefit in funding your retirement plan account with an annuity contract. Non-tax reasons for using an annuity may include lifetime payment choices, death benefits, and similar characteristics.
2 Ordinary income taxes apply to withdrawals. Withdrawal charges may also apply. Federal income tax rules, with certain exceptions, prohibit withdrawals before age 59½ from a TSA annuity. Some exceptions apply. Where pre-59½ withdrawals are allowed, a 10% federal income tax penalty may apply in addition to ordinary income tax. Consult with a tax advisor to determine whether an exception to these tax rules may apply.
*As of the close of the NYSE on 10/4/13, no new group sales permitted. Currently available to new participants in existing group plans established by 10/4/13. The C Class is only available to new participants in groups established prior to the close of the NYSE on 6/1/12 with the C Class in the 403(b) ERISA, 403(a), 457(b), or 401 markets.
The (SVA) is offered by prospectus only. To obtain a prospectus, please contact MetLife at the service center number reflected on your enrollment materials. You should carefully consider the product's features, risks, charges and expenses. This and other information is available in the prospectus, which you should read carefully before investing. Product availability and features may vary by state. The market value adjustment will not apply to certain participant initiated transactions for example upon your retirement, death, or separation from service. The market adjusted value may be lower or higher than your contract value.
Strategic Value Annuity issued by, and product guarantees are solely the responsibility of, Brighthouse Life Insurance Company, Charlotte, NC 28277 (“Brighthouse Financial”), and not MetLife. Variable annuity products are distributed by Brighthouse Securities, LLC (member FINRA). Both are Brighthouse Financial affiliated companies. Brighthouse Financial® and its design are registered trademarks of Brighthouse Financial, Inc. and/or its affiliates.
Annuity contracts contain exclusions, holding periods, termination provisions, limitations, reduction of benefits, surrender charges and terms for keeping them in force.
For participant allocations in the SVA: If Valdosta City School District determines the need for a partial or full surrender of the SVA, such as moving to another retirement service provider, a surrender charge of 5% of the cash value may apply and will be deducted as a percentage of the amount withdrawn. There are no surrender charges however for withdrawals on participant initiated transactions on account of your retirement, death, or separation from service.
MetLife Financial Freedom Select variable annuity products are offered by prospectus only. To obtain a prospectus, please contact MetLife at the service center number reflected on your enrollment materials. Please carefully read the product prospectus and consider the product’s features, risks, charges and expenses, and the investment objectives, risks and policies of the underlying portfolios, as well as other information about the underlying funding options. This and other information is available in the prospectus. Product availability and features may vary by state. All product guarantees, including optional benefits, are subject to the financial strength and claims-paying ability of Metropolitan Life Insurance Company.
The amounts allocated to the variable funding options are subject to market fluctuations so that, when withdrawn, they may be worth more or less than their original value. There is no guarantee that any of the variable funding options will meet their stated goals or objectives.
Like most annuity contracts/certificates, MetLife’s contracts/certificates contain charges, limitations, exclusions, holding periods, termination provisions and terms for keeping them in force.
If you are buying a variable annuity to fund a qualified retirement plan or IRA, you should do so for the variable annuity’s features and benefits other than tax deferral. In such cases, tax deferral is not an additional benefit of the variable annuity. References throughout this material to tax advantages, such as tax deferral and tax-free transfers, are subject to this consideration.
Any discussion of taxes is for general informational purposes only, does not purport to be complete or cover every situation, and should not be construed as legal, tax or accounting advice. Clients should confer with their qualified legal, tax and accounting advisors as appropriate.
MetLife and/or its affiliates ("MetLife") receive fees for providing administrative and recordkeeping services. The fees may be deducted directly from the Participant's account, be paid for by the Employer, be paid from the Plan assets and/or paid from the fees deducted from Participant account values allocated to the mutual funds available under the Plan. The fees can vary based upon the mutual funds that are available in the Plan and Plan Participants’ asset allocations. Because different mutual funds pay different rates of compensation and rates of mutual fund compensation are subject to change from time to time, compensation received by MetLife varies based on the rates of compensation in effect from time to time. MetLife may receive a finder’s fee from certain fund companies, which is additional compensation to MetLife. MetLife may also impose separate transactional fees for certain Participant elected transactions that will be charged directly to Plan Participants unless paid by the Employer or the Plan. MetLife may increase the annual administrative service fee charged to Participants’ accounts. MetLife may also pay a portion of the fees it collects to an entity that is designated as a directed trustee or directed custodian of the Plan; or to a third party administrator, or third party investment advisor. MetLife may receive payments for administrative services provided under the third party investment advisory services. MetLife also receives compensation for administrative services on annuities that are issued by unaffiliated insurance companies. MetLife also receives fees with respect to annuities it issues, according to the terms of the annuity contracts and prospectuses, if applicable. If you would like more information on the compensation that MetLife receives, contact your Employer. MetLife may realize a profit from any of the fees described above.
Ordinary income taxes generally apply at withdrawal. Withdrawal charges may also apply. Withdrawals will reduce the living benefit, death benefit and account value. Withdrawals prior to age 59½ from a TSA (before separation of service) are generally prohibited. Where allowed, a 10% federal income tax penalty generally applies, in addition to ordinary income taxes. Consult with your tax advisor to determine whether an exception to these tax rules may apply.
MetLife refers to Metropolitan Life Insurance Company (MLIC), 200 Park Avenue, New York, NY 10166. MetLife Investors Distribution Company (MLIDC) (member FINRA), New York, NY 10166, makes available participation in mutual fund options through its Mutual Fund Select Portfolios, for certain retirement plans. You may enroll and participate in the Mutual Fund Select Portfolios through your retirement plan. Both MLIC and MLIDC are MetLife companies.
MetLife Financial Freedom Select variable annuity is issued by Metropolitan Life Insurance Company, 200 Park Avenue, New York, NY 10166. Securities, including variable annuity products, are distributed by MetLife Investors Distribution Company (member FINRA). Both are MetLife companies. Policy Form numbers G.FFS(08/02) and G-MFFS-1(8/04).
The plan document governs the terms of the plan and is available from your employer. In general, if any conflicts occur between this material and the plan documents provided by your employer that define the plan, the plan documents will govern.