The School Board of Broward County’s BENCOR Special Pay Plan

What is the SBBC BENCOR Special Pay Plan?   The Special Pay Plan is offered by SBBC as a powerful way to help you realize your retirement dreams.   If you are entitled to sick pay or vacation pay*, the Special Pay Plan will help ensure you never pay Social Security and Medicare taxes on that money.

How Does the SBBC BENCOR Special Pay Plan Work? Special Pay Comparison (Sick Pay Only) Without BENCOR Plan $ 10, , Fed Tax FICA 2, Fed Tax FICA Medicare Medicare$6, Net Pay With BENCOR Plan $ 10, $ 0 Fed Tax (Deferred) $ 0 Fed Tax (Deferred) $ 0 FICA (Permanently Saved) $ 0 Medicare (Permanently Saved) $10,000 Deposited to your Account

Key Benefits of the SBBC BENCOR Special Pay Plan  Tax Savings & Deferrals Permanently save FICA and Medicare TaxesPermanently save FICA and Medicare Taxes On $10,000 you permanently save $765 On $10,000 you permanently save $765 Federal Income Taxes are deferred until funds are withdrawn from the Plan.Federal Income Taxes are deferred until funds are withdrawn from the Plan. Without the BENCOR Plan, Federal Income Taxes will be withheld from your sick pay and vacation pay distribution. Without the BENCOR Plan, Federal Income Taxes will be withheld from your sick pay and vacation pay distribution. With the BENCOR Plan, all income taxes are deferred until funds are withdrawn from the Plan. With the BENCOR Plan, all income taxes are deferred until funds are withdrawn from the Plan. Manage Payment of Income Taxes Manage Payment of Income Taxes

Key Benefits of the SBBC BENCOR Special Pay Plan  Contribution Limits  401(a) IRS 415 Limit – lesser of $53,000 or 100% of salary. If plan year salary is less than $53,000, a different calculation will be used.IRS 415 Limit – lesser of $53,000 or 100% of salary. If plan year salary is less than $53,000, a different calculation will be used. You can also fully fund your elective deferral 403(b) Plan or 457 Plan.You can also fully fund your elective deferral 403(b) Plan or 457 Plan. (based on current Internal Revenue Guidelines)

Special Features of SBBC’s BENCOR Special Pay Plan Contributions During DROP  Multiple Annual Contributions Increasing percentage of sick leave at end of each year of DROP. Increasing percentage of sick leave at end of each year of DROP. 5-Year example: Year 120% 5-Year example: Year 120% Year 225% Year 225% Year 333.3% Year 333.3% Year 450% Year 450% Year 5100% Year 5100%

Other Special Features of SBBC’s BENCOR Special Pay Plan Other Features Safety, Liquidity & Flexibility Safety, Liquidity & Flexibility Tax-Deferred Earnings Tax-Deferred Earnings Optional Investment Accounts Optional Investment Accounts Loans Loans Probate Avoidance Probate Avoidance

How Your Account is set up in the SBBC BENCOR Special Pay Plan  Your Eligible Contribution is Automatically Deposited SBBC sends deposit to Plan as stated by Board Policy SBBC sends deposit to Plan as stated by Board Policy Deposit is credited to your BENCOR account Deposit is credited to your BENCOR account Money is deposited into the Guaranteed Pooled Account (principal guaranteed, interest bearing) backed by Transamerica Financial Life Insurance Company Money is deposited into the Guaranteed Pooled Account (principal guaranteed, interest bearing) backed by Transamerica Financial Life Insurance Company BENCOR Administrative Services (BAS) records deposit and sends verification to participant along with account access information. BENCOR Administrative Services (BAS) records deposit and sends verification to participant along with account access information.

Accessing Your SBBC BENCOR Special Pay Plan  Using your account (Subject to IRS Guidelines) Withdrawals at employment separation Withdrawals at employment separation Use as income or take as you needUse as income or take as you need Make-Whole ProvisionMake-Whole Provision Loans Loans ½ of account balance up to $50,000 (one time $100 fee)½ of account balance up to $50,000 (one time $100 fee) Up to two loans may be outstanding at any timeUp to two loans may be outstanding at any time Change Investments Change Investments Over the phone, online or through BENCOR Retirement SpecialistsOver the phone, online or through BENCOR Retirement Specialists Rollovers – In & Out Rollovers – In & Out

Using Your SBBC BENCOR Special Pay Plan Account for DROP Rollovers  DROP Options Take Cash – pay taxes Take Cash – pay taxes Rollover – defer taxes Rollover – defer taxes Combination cash & rollover Combination cash & rollover  BENCOR Plan is designed to accept DROP Rollovers Existing Account Existing Account Fully Liquid at Age 55 Fully Liquid at Age 55 Make final decision at later date Make final decision at later date

Investment Options in the SBBC BENCOR Special Pay Plan  Guaranteed Pooled Fund Stable Value Account – Currently Crediting 1.00% Stable Value Account – Currently Crediting 1.00% Guarantee of Principle and Interest Guarantee of Principle and Interest No Participant Restrictions or Charges No Participant Restrictions or Charges  Variety of Mutual Funds Varying investment management fees (annual asset-based) Varying investment management fees (annual asset-based) Update – Roll out of new investment options in the next few months. Higher Crediting Rate on Stable Value Account Higher Crediting Rate on Stable Value Account Greater Diversity and Lower Fees on Mutual Funds Greater Diversity and Lower Fees on Mutual Funds

Where to get more information on SBBC’s BENCOR Special Pay Plan  Online at  Through your Local BENCOR Advisors Kevin Semisch Kevin Semisch Shawn Flynn Shawn Flynn  BENCOR Advisors are available to help you at no charge  Note: BENCOR Advisors do not provide Investment Advice You Can Reach Them At: (954)

SBBC’s BENCOR Special Pay Plan Your Next Steps  Account is Automatically Set Up For You  Log on to Update Your Address Update Your Address Choose Your Beneficiary Choose Your Beneficiary Change Your Investment Direction (If You Want To) Change Your Investment Direction (If You Want To)  Reach out to your Local BENCOR Advisor for Help

SBBC’s BENCOR Special Pay Plan Questions ?????? ?????? Send an Login to Your Account: Call a Local Advisor: (954) Call the Client Service Center: (888)