Kentucky Deferred Compensation 2011 System Enhancements

As noted earlier this year in Authority Statement Newsletters and on our website, Kentucky Deferred Compensation is transitioning from our current record keeper, Nationwide Retirement Solutions (NRS), to ING. This transition is now projected to take place effective Jan. 10, 2011.

Beginning with the first quarter of 2011, Quarterly Participant Statements will be available electronically. Participants will need to proactively request this feature online. In addition, participants, provided they otherwise qualify, will be able to request a loan online. They also retain the ability to call or visit the authority for assistance with their loan.

The authority will, furthermore, begin to transition to a new payout system that will allow payouts to be made on any business day, rather than on the date specific schedule utilized for several years. On and after Jan. 10, 2011, participants will be able to change deferral increases and decreases online. Wet signatures will still be required for enrollments, reinstatements, beneficiary changes, and benefit payment election forms.

The authority encourages participants who have questions about the upcoming record keeper transition to call the toll-free number at 800.542.2667; the Frankfort number at 502.573.7925 or stop by their offices at 101 Sea Hero Rd., Suite 110 in Frankfort. For additional information, visit www.kentuckydcp.com.

Money Tips for College Students: How to Make It, Use It and Save It
Time to start repaying student loans

 
If you finished college in May and have student loans, your six-month grace period should be up soon. That means it is time to start repaying your loans. These tips from the Kentucky Higher Education Assistance Authority (KHEAA) may help.

One of the smartest things you can do is pay more than your scheduled payment amount. The extra is applied to the principal, so you will pay less interest over the life of your loan.

As a student loan borrower, you should let your lender know if you change your name, address or phone number; if something changes your status, such as going back to school; or if you have problems making your payments.

You have several repayment plans from which to choose. The standard repayment plan calls for equal monthly payments over 10 years. The minimum monthly payment is usually $50. Other options are:

• Graduated repayment, which starts with lower repayment amounts that get higher over the maximum 10-year period.
• Income-sensitive repayment, with monthly payments based on gross income.
• Income-based repayment, with monthly amounts based on income and family size. The maximum period is 25 years, with any balance remaining at the end of 25 years forgiven.
• Extended repayment, which lets you take up to 25 years to repay your student loans if you borrowed more than $30,000 and none of your loans were made before Oct. 7, 1998.

You will pay more interest over the life of the loan if you use any option other than standard repayment.

If you are having trouble making payments, contact your lender immediately. You may qualify for a deferment or forbearance, which can let you stop making payments or temporarily make lower payments.

To learn how to plan and prepare for higher education, go to www.gotocollege.ky.gov. For more information about Kentucky scholarships and grants, visit www.kheaa.com; write KHEAA, P.O. Box 798, Frankfort, Ky. 40602-0798; or call (800) 928-8926, ext. 6-7372.

Top 10 Investor Traps of 2010 (PDF -91 KB) The Department of Financial Institutions (DFI) released its annual list of traps that investors should avoid.