Page 20 - Gerald R Ford International Airport Authority 2022 Benefits Guide

Employee retirement plans (continued)

Retirement Health Care Savings Plan
GFIAA sponsors a Health Care Savings Plan (HCSP) for employees. A HCSP is a tax-free medical savings program that
allows both employees and employers to invest money while employed for use of eligible medical expenses once you
leave employment or retire from the Authority.
The account is designated for post-employment health care use and money can be used for employee, spouse or
dependent eligible health care expenses. Eligible expenses include but are not limited to health care premiums, co-pays,
deductibles, prescription drugs, dental and vision services.

Mandatory employee contributions equal 1% for 2022. The Authority will supplement employee HCSP account with an
annual contribution of $3,000 per year paid on a quarterly basis. Employee supplement is subject to annual adjustment.

Voluntary Retirement Plan
The Authority Deferred Compensation Plan is authorized under Section 457 of the Internal Revenue Code and is a
voluntary retirement plan maintained to provide supplemental retirement income for eligible employees. Participation in
the Deferred Compensation Plan will allow you two choices to accumulate monies for your retirement.
You can use the traditional pre-tax contributions to the Plan and enjoy the advantage of tax deferment until you are ready
to retire; or you can designate your contributions to the Plan account as after-tax Roth 457 contributions. The Roth option
allows after-tax contributions to the Plan with the goal of receiving tax-free income in retirement.

You can split deferrals between pre-tax and after-tax Roth contributions. You can start or stop contributions at any time.
The Deferred Compensation Plan allows you to allocate your contributions to the plan in a variety of investment options
available under contract with Nationwide Retirement Solutions.

What’s the difference? Traditional (pre-tax 457) Roth 457

2022 Contribution Limit $19,500 $19,500
2022 Catch-up contribution limit – for those age 50 and older $6,500 $6,500
Contribution taxable in year contributed No Yes
Contribution taxable in year distributed Yes No
Contribution earnings taxable in year distributed Yes No
Your income determines your contribution amount No No
You cannot access your deferred compensation account balance, as an active GFIAA employee, unless you experience
an unforeseen event outside of your control that results in financial hardship. An unforeseen emergency withdrawal may
be obtained only if you can show that all other available assets have been used and opportunities for loans or credit are
not available. The amount of the unforeseen emergency withdrawal cannot exceed the amount required to alleviate your
financial hardship after considering your other financial resources and your ability to obtain money from another source.

An unforeseen emergency is defined in the Internal Revenue Code as a severe financial hardship resulting from a sudden
and unexpected accident or illness of the participant or of a dependent of the participant. It may be the loss of the
participant’s property due to casualty, or other similar extraordinary and unforeseeable circumstances. The loss must be
because of events beyond the control of the participant. (IRS Reg. 1.457-2(h)(4). Contact HR to apply for an unforeseen
emergency withdrawal.

Add or update your beneficiary(s) within your ADP account or contact Human Resources.

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