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401(a) plan

Welcome to the Metropolitan Water Reclamation District of Greater Chicago 401(a) Retirement Plan. Click below to view the features and highlights of your employer’s retirement plan.

The plan highlights are only a brief overview of the plan's features and are not a legally binding document. The information in this section does not modify the terms of the plan and in the event of a conflict, the terms of the plan control.

All full-time employees are immediately eligible to participate in the plan and receive employer contributions.

Contributions

The plan provides for MWRD to make quarterly contributions to your account based on your hours worked, including overtime. Hours worked does not include vacation, sick or other compensatory time or time on a leave of absence.

Vesting

Vesting refers to your "ownership" of a benefit from the plan. You are immediately 100% vested in your employer’s contributions and rollover contributions, plus any earnings they generate.

Account consolidation

You might be able to transfer your vested retirement account balance from a prior employer’s plan to your MWRD 401(a) Retirement Plan with Corebridge Financial. This may be a way to simplify your financial profile and help ensure your overall investments are suitably diversified and consistent with your investment preferences.

However, before moving funds, check with your other provider to determine if your account has any restrictions, imposes a withdrawal penalty or provides favorable terms.

No in-service distribution is permitted with respect to rollover contributions into the 401(a) plan.

Withdrawal restrictions

Your plan was established to encourage long-term savings, so certain withdrawals may be subject to federal restrictions. Generally, you may withdraw your vested account balance if you meet one of the following requirements:

  • Retirement or severance from employment
  • Hardship (subject to approval)
  • Death

Withdrawals made prior to age 59½ may be subject to a 10% federal early withdrawal tax penalty.  

In addition, you must begin taking distributions once you reach the “applicable age” under the RMD rules unless RMD requirements are being satisfied elsewhere. The “applicable age” is:

  • Age 75 (if born after December 31,1959)
  • Age 73 if you were born January 1, 1951, or later (The RMD eligible age will increase to age 75 after December 31, 2032)
  • Age 72 if you were born after June 30, 1949, and before January 1, 1951 (For individuals turning age 72 in 2023, no RMD payment is required in 2023)
  • Age 70 ½ if you were born before July 1, 1949

Distribution options

Your plan offers many distribution options, allowing you to tailor your benefits to meet your individual needs. Depending on the plan provisions, your withdrawal options include:

  • Electing systematic or partial withdrawals
  • Taking a lump-sum distribution
  • Choosing one of the annuity options available
  • Continuing your tax deferral by delaying the commencement of Required Minimum Distributions (RMD) until reaching age 75 (if born after December 31, 1959), age 73 (if born after December 31, 1950 and before January 1, 1960), age 72 (if born after June 30, 1949 and before January 1, 1951), age 70½ (if born before July 1, 1949).

Generally, income taxes must be paid on all amounts you withdraw from your plan. A 10% federal early withdrawal tax penalty may apply to distributions taken prior to age 59½. Consult your financial professional for more specific information.

Important considerations before deciding to move funds either into or out of a Corebridge Retirement Services account

There are many things to consider. For starters, you will want to carefully review and compare your existing account and the new account, including: fees and charges; guarantees and benefits; and, any limitations under either of the accounts. Also, you will want to know whether a surrender of your current account could result in charges. Your financial professional can help you review these and other important considerations. Consult a tax professional before making a decision to move funds either into or out of a Corebridge account.

An array of investment choices   

You decide how to invest all contributions among the mutual funds and the Fixed-Interest Option* offered under the Metropolitan Water Reclamation District of Greater Chicago 401(a) Retirement Plan. The wide array of mutual fund investment options available in your 401(a) Retirement Plan will provide you with the flexibility you need to create a suitably diversified portfolio that matches your personal retirement time horizon, investment risk tolerance and investment preferences. 

Remember, this plan represents a long-term investment. Investment values of the mutual funds you choose will fluctuate, and there is no assurance that the objective of any fund will be achieved. Mutual fund shares are redeemable at the then-current net asset value, which may be more or less than the original cost. Bear in mind that investing involves risk, including possible loss of principal.

* Policy Form series GFUA-398, a group fixed unallocated annuity issued by The Variable Annuity Life Insurance Company, Houston, Texas.

 

Guided Portfolio Services®

Guided Portfolio Services (GPS) is an optional service that offers two approaches to help you achieve your retirement goals. One approach is for do-it-yourselfers. The other is great for those who prefer to have someone else do it for them. Both approaches deliver objective advice from independent financial expert, Morningstar Investment Management LLC, including how much to save, which investments to choose, and how much to invest in each.

GPS is offered through VALIC Financial Advisors, Inc. and is available for an additional fee. For more information, contact your local financial professional.

 

Fixed-Interest Option transfer restrictions

Generally, participants may transfer assets from the Fixed-Interest Option into equity options at any time and, after 90 days, from equity options into another fixed-income option such as a money market fund, a stable value fund or certain short-term bond funds, if such “competing options” are allowed in the plan.

Investors should carefully consider the investment objectives, risks, fees, charges and expenses before investing. Read the fund prospectuses and if available, the summary prospectuses, carefully before investing. The fund prospectuses contain important information, which can be obtained from your financial professional, at metrowaterdistrict.corebridgefinancial.com or by calling 1.800.448.2542 and following the prompts. 

RO 2933713 (06/2023)