415(m) NSHE Excess Benefit Plan

Plan History and Purpose

IRS regulations limit the extent to which participants in retirement plans can benefit from those plans. These limitations reduce the amount of benefit that certain highly paid employees are able to accumulate from amounts they might otherwise be able to accumulate absent the limitations.

The Excess Benefit Plan was created in 2000 specifically for employees in this situation. Those employees automatically participate in the Excess Benefit Plan when they reach the benefit limits imposed by the IRS.

How You Participate

A credit will be made to your account equal to the benefit you would have received in the RPA had there been no limitation on benefits reduced by the actual benefit you received in the RPA. You direct how you direct how your plan benefits are invested. The record keeper is TIAA.

When You are Eligible to Receive Your Retirement Benefits

You are required to take a full cash distribution within 60 days following your separation from service from your NSHE Excess Benefit Plan account.

How Your Benefits Are Paid to You

  • Within 60 days after separation, you will be required to take a full cash distribution
  • You will be issued a Form W-2 that will reflect the distribution.
  • Wages will be taxed a federal flat rate of 22% along with state taxes based on your address of record.

Plan Document