Skip to main content
Corebridge home

401(a) plan

Welcome to the Southern Education Retirement Consortium (SERC) 401(a) plan features. 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.

Take advantage today

Participation in the plan is open to all employees and there is no age or service requirement for eligible employees to participate.

Starting early has its advantages

Your contributions 

The plan provides for Pioneer Regional Education Service Agency, by and through, Cooperative Purchasing Agency, d/b/a Southern Education Retirement Consortium to make contributions.

  • The plan provides for discretionary matching contributions on pre-tax contributions in an amount to be determined by Pioneer Regional Education Service Agency, by and through, Cooperative Purchasing Agency, d/b/a Southern Education Retirement Consortium on an annual basis. The match benefits all eligible employees.
  • Pioneer Regional Education Service Agency, by and through, Cooperative Purchasing Agency, d/b/a Southern Education Retirement Consortium can make profit-sharing contributions at its discretion, which will be allocated among all eligible employees. 

Fixed-Interest Option

Generally, you 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. 

Vesting

Vesting is a participant’s right of ownership to the money in his or her plan. The Employer and Profit-sharing contributions are immediately and fully vested. 

Accessing your money before retirement

Withdrawal restrictions

Money can be withdrawn from the plan in these events:

  • Your retirement
  • Your attaining age 59½
  • Death
  • Disability
  • Severance from employment
  • In-service withdrawal of Pioneer Regional Education Service Agency, by and through, Cooperative Purchasing Agency, d/b/a Southern Education Retirement Consortium contributions 

Income taxes are payable upon withdrawal. Federal restrictions and a 10% federal early withdrawal penalty may apply if taken before age 59½. Be sure to talk with your tax advisor before withdrawing any money from your Plan account. 

In addition, the Internal Revenue Service (IRS) requires you to take Required Minimum Distribution (RMD) withdrawals from your retirement account(s) annually beginning the year you reach the RMD eligible age. RMD eligible age is:

  • 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.

Hardship withdrawals 

If you have an immediate financial need created by severe hardship and you lack other reasonably available resources to meet that need, you may be eligible to receive a hardship withdrawal from Employer Matching/Employer Profit Sharing Contributions. A hardship may include: 

  • Purchase of a principal residence
  • College tuition and approved related expenses for you, your spouse or dependents
  • Non-reimbursable medical and/or dental expenses for you, your spouse or dependents
  • Payment to prevent eviction from or foreclosure on your principal residence
  • Payment for burial or funeral expenses for your deceased parent, spouse, or children
  • Payment for expenses for the repair of your principal residence

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.

Tax-free loans

The plan is intended to help you put aside money for your retirement. However, Pioneer Regional Education Service Agency, by and through, Cooperative Purchasing Agency, d/b/a Southern Education Retirement Consortium has included a Plan feature that enables you to access money from the Plan tax-free without permanently reducing your account. All loans may be repaid over time. 

  • The amount the plan can loan to you is limited by rules under the tax law. All loans will be limited to the lesser of: one-half of your vested account balance or $50,000.
  • All loans must generally be repaid within five years.
  • You pay interest back to your account. The interest rate on your loan will be a fixed rate of 1%.
  • A $50 processing fee for all new loans and a $50 per year loan maintenance fee are charged to your account.

Other requirements and limits must be met prior to borrowing money from your account. For additional information regarding loans, please see your financial advisor. 

RO 3622777 (7/2024)