QPP and SPP Plans
Central Texas College maintains two IRS Section 401(a) defined contribution ERISA-compliant qualified pension plans for its employees.
The Employees’ Pension Plan and Trust (referred to as “QPP”) is for full-time employees (with some exceptions). Eligible employees must satisfy a one-year waiting period for participation in QPP, after which time they are entered into QPP on the next entry date (either March 1 or September 1). Employees contribute a mandatory 6% of their wages to QPP, and CTC contributes a mandatory 7%. Employees may contribute an additional 4% if they wish.
Employees are always 100% vested in their own employee contributions and the associated earnings, but they must satisfy a 6-year vesting schedule in order to become 100% vested in the employer contributions and the associated earnings.
The Employees’ Supplemental Plan and Trust (referred to as “SPP”) is for part-time employees (with some exceptions). There is no waiting period for SPP participation; eligible employees participate from their first day of employment. Eligible employees contribute a mandatory 3.75% of their wages to SPP, and CTC contributes a mandatory 3.75%. Employees are always 100% vested in both their own employee contributions, and also the employer contributions, and all the associated earnings.
Special rules apply to our “wage-determined” employees. Wage-determined employees are eligible to participate in SPP, but not QPP. Some exceptions may apply, depending on your individual circumstances.
When individuals leave CTC (and are officially and completely terminated/retired from the employer), they can take distribution of the vested balance in their pension account, which consists of: employee contributions, vested employer contributions, and vested accrued earnings. Plan rules mandate that inactive accounts with balances under $1,000 should be distributed as quickly as possible. See Distribution Information section for more information. If your account balance is over $1,000, you may leave your funds in "QPP" and "SPP" after you terminate/retire. You will continue to participate in our portfolios, just as you did before you terminated/retired.