Retirement

Research shows that Americans are living longer and their number of years in retirement is increasing. While your TRS pension may be enough to cover expenses during your initial retirement years, the reduced monthly income may not be sufficient for costly factors such as medical bills, taxes, and your desired standard of living. Contributing to a retirement savings plan can help supplement your pension during retirement.

The Plans adopted by Harmony Public Schools are provided through the Education Service Center Region 10 Retirement Asset Management Services (RAMS) Program and managed by Trusted Capital Group (TCG). This is the largest retirement plan cooperative in Texas in which charter and public schools can participate.

HPS is a member of the TRS (Texas Retirement System of Texas) where a mandated 8% is contributed from each pay period into an account, giving employees the opportunity to prepare for their retirements financially. For more information about TRS, please visit the TRS website.

Additionally, Harmony offers 100% matching contribution to employee 403(b) and/or 457(b) plan, up to $1,500 annually depending on employee tenure of service. This is in addition to employee’s TRS Retirement System Benefits.

HELP IS AVAILABLE

For assistance enrolling or if you’d like to speak with a Retirement Plan Specialist, please call the TCG Advisors Hotline at 512-600-5204 or visit www.region10rams.org/harmonytx to schedule a TeleWealth virtual appointment.

The following plans are available for you:

457(b) RETIREMENT PLAN

457(b) is an employer-sponsored, voluntary retirement plan that allows you to save money in a pre-tax or after-tax (Roth) account. Contributions to the plan are salary-deducted from your paycheck and automatically deposited into your 457(b) retirement savings account.

The 457(b) plan offers employees personalized guidance and flexible strategies to start the process of saving for retirement. TCG is the 457(b) plan administrator and advisor. Plan investments are also overseen by a committee made up of superintendents and chief financial officers, giving educators the assurance other educators are looking in their best interest.

The plan does not have any surrender charges or penalties upon distribution. Early withdrawals from a 457(b) account are not subject to a 10% percent early withdrawal tax upon separating from the employer.

As an additional benefit, opening up a 457(b) account includes access to FinPath, a program designed to help you take control of your money with the help of trusted financial advisors and online financial tools. With FinPath, you have access to financial workshops, budgeting tools, and access to live Wellness Coaches to help answer any financial question.

To get started, simply visit www.region10rams.org and establish your 457(b) account.

403(b) RETIREMENT PLAN

403(b) is a voluntary retirement plan that allows you to save money in a pre-tax (Traditional) or after-tax (Roth) account. Contributions to the plan are salary-deducted from your paycheck and automatically deposited into your 403(b) retirement savings account. Please note that early withdrawals from a 403(b) account are subject to a 10% early withdrawal tax.

TCG is the 403(b) plan administrator—managing your contributions, distributions, and personal updates. Money and investments are held with the vendor you choose to go with.

To get started, visit www.region10rams.org and find your employer’s 403(b) Approved Vendor List. Open an account by contacting one of the approved 403(b) providers directly. Next, register your access to your RAMS 403(b) administration account with TCG and set up salary deferrals at www.region10rams.org/enroll. Please note that Harmony PS has made special arrangements to offer Amana mutual funds in the Plan. If you need help setting up an account with Amana, please contact TCG Customer Service at (800) 943-9179.

401(a) Incentive/Match Plan

A 401(a) plan is an employer-sponsored retirement plan that allows dollar or percentage-based contributions from the employer, the employee, or both. Harmony Public Schools has created this incentive match plan to help you help build your retirement savings by rewarding your “Steps” as an employee.

Beginning in February 2021, all Exempt (salaried teachers, professionals and administrators) employees will receive a 100% match of deferrals to the 403(b) and/or 457(b) Plan up to a cap based on the Step you are currently on. You will vest in your account (the percentage of employer contributions you own) as you stay with Harmony Public Schools longer.

Enrollment is automatic if you are contributing to the 403(b) or 457(b) Plan. To access your account, visit www.region10rams.org and click Login. More details about the plan are in the Summary Plan Description can be accessed using this link.

CONTRIBUTION LIMITS

In 2024, you can contribute 100 percent of your includible compensation up to $23,000, whichever is less. If you are age 50 or older, you can contribute up to an additional $7,500 for a total of $30,500. You may simultaneously contribute to both 403(b) and 457(b) plans.