Supplemental Retirement Plans
Supplemental Retirement Plans are voluntary, long-term savings programs designed to supplement employees' retirement income. Full-time and part-time employees and faculty are eligible to participate. Pre-tax dollars are used to invest in annuities, mutual funds, etc. from a list of companies approved by the State. Enrollment is permitted at any time. Employees may also stop, increase, or decrease contributions, or change vendors/products at any time. Employees may elect to participate in the following programs:
Deferred Compensation Plan:
This is an IRS Section 457 approved program into which employees may defer pre-tax dollars, thereby lowering their gross salary for tax purposes. Up to $14,000 may be deferred into this plan annually. Money withheld is available only as a result of retirement, termination, disability, financial hardship, or death.
Tax-Sheltered Annuity Plan:
This is an IRS Section 403 (b) program, which is similar to the Deferred Compensation Program, but is more portable and more flexible with respect to transfer of funds. Employees may defer up to $14,000 each year.