Frequently Answered Questions (FAQs):

What is IPC?
IPC stands for the Investment Plans Committee. The IPC administers BART’s Deferred Compensation Plan and Money Purchase Pension Plan. The members of the committee include one representative from each of the four employee unions representing BART employees and one representative from BART management.
What is a Deferred Compensation Plan?
A deferred compensation plan is a retirement savings plan that allows participants to save money for after retirement. Taxes on the savings are deferred until the money is withdrawn from the account. Thus the name deferred compensation. BART’s Deferred Compensation Plan is a Plan established under Section 457 of the Internal Revenue Code and therefore is also known as a 457 plan.
Is there a limit to the amount, which may be deferred?
For 2010, you could defer up to 100% of your gross pay (pay before taking your deferrals into account) or $16,500, whichever is less. The maximum dollar deferral limit may be increased by law depending upon increases in the cost of living.
How can I automatically increase my contribution rate in the 457 Deferred Compensation Plan?
You can easily increase your contribution rate by choosing the Automatic Escalator Program on the BART 457 Deferred Compensation Plan Amount of Deferral Change Form. Here is how it works - in July of each year, BART will automatically increase your contribution rate by 1% of your current salary. To get started, you need to complete the form and then return it to the BART Benefits Office at 300 Lakeside Drive, 20th Floor, Oakland, CA 94612. Alternatively, you can fax the completed form to (510) 464-7618.
What are my investment options?

The Committee regularly reviews and monitors a broad range of investment options for your use.

The purpose of the Deferred Compensation Plan is to provide BART Employees with a savings and investment program for retirement. Contributions to the Plan and earnings on those contributions are not subject to current income taxes, but are taxed only when you receive a distribution from the Plan.

What are the objectives of the Plan?
The purpose of the Deferred Compensation Plan is to provide BART Employees with a savings and investment program for retirement. Contributions to the Plan and earnings on those contributions are not subject to current income taxes, but are taxed only when you receive a distribution from the Plan.
Who is eligible to participate in the Plan?
All Employees, officers and members of the Board of Directors of BART are eligible to participate in the Plan.
How do I participate in the Plan?

To become a Plan participant, you must complete a Participation Agreement in which you specify:

  • How much of your pay you wish to defer
  • How you would like to invest the amounts you have deferred
  • Who will be the Beneficiary of your interest in the Plan if you die before you receive full distribution of your funds

The Participation Agreement must be filed before the first day of the month that deferrals will begin or, if you wish to begin participating in the Plan immediately, the Participation Agreement must be filed upon hire.

How much can I defer?
For 2010:
Basic Deferral Limit $16,500
50 + Catch-up Limit $5,500
Pre-Retirement Catch-up Limit $16,500

Note: If you want to change your deferral amounts, please contact BART Benefits Office at (510) 464-6208.

What is vesting and how do I become vested?
A vested benefit is that part of your Account Balance which belongs to you unconditionally. It can never be taken away from you, even if you quit or fired. You are 100% vested in your Plan Account at all times.
Where can I obtain Plan forms for the BART Deferred Compensation Plan and Money Purchase Pension Plan?
Plan forms are available online on the Publications and Forms page. You may also contact the Investment Plans Assistant:

BART Benefits Office
300 Lakeside Drive, 20th Floor
Oakland, CA 94612[Directions]
(510) 464-6208

Contact the Investment Plans Assistant if you are interested in using the pre-retirement catch-up provision to increase contributions to the Plan in the three taxable years prior to Normal Retirement Age.

When can I make changes to my investment allocations?

You can make changes to your investment allocation at any time. Using the Plan Record Keeper’s systems, either log on to your account or call ICMA-RC Investor Services to make your changes.

It is important to note that there are two types of changes you can make to the way your money is invested in your Account:

  • Changes to the investment of your current Account balance.
  • Changes to the investment of your future contributions.

Remember to consider both types of allocations when making changes. If you do not change the allocations of your future contributions, money transferred to your account will be allocated according to your current designations. If you change only your future contributions, the funds in your account will stay invested exactly as they are today with changes occuring only as the market fluctuates.

Can I use my deferred compensation to pay for Airtime?
Yes, you can use deferred compensation to purchase Airtime. Airtime, or Additional Retirement Service Credit, is an option recently added to the CalPERS defined benefit pension plan to permit qualified employees to buy service credit.
Can I borrow from my investment plans?
You cannot borrow from your investment plans.
What are the plan account numbers?
The plan account numbers are 107567 for the Money Purchase Pension Plan, and 304764 for the 457 Deferred Compensation Plan.
Who should I ask if I have questions?
Any questions can be addressed to the staff of the Committee at (510) 464-6208 or contact us directly in the public meeting either in person or in writing. For complete information, see the contact information page at the end of the Summary Plan Description .
BART