Supplemental Retirement Plans
What are Supplemental Retirement Plans?
Supplemental retirement plans allow all faculty (including adjunct faculty), staff, and non-student wage employees to set aside money each pay period for long-term savings. The money deducted is invested in your choice of a number of stock and bond options. This contribution is deducted from your pay before state and federal income taxes are taken, lowering your current income and resulting in lower taxes as you save. The interest or investment growth also accumulates free from income tax until the year you withdraw your funds.
The University offers two types of tax-deferred annuity plans:
- 403(b) Tax-Sheltered Annuity (TSA) Plans
- Virginia's 457 Deferred Compensation Plan (DCP)
as well as an after-tax 403(b) plan:
What is the Cash Match Plan?
The Cash Match Plan is only open to salaried employees enrolled in the TIAA-CREF or Fidelity 403(b) plans or the 457 DCP. An employee contribution of $40 or more per pay period will generate a $20 cash contribution from the State. Employees contributing less than $40 per paycheck will receive an employer cash match of 50% of their contribution.
|Number of Pays per Year||Cash Match Maximum per Pay Period|
|24 Pays (semi-monthly)||$20.00|
|18 Pays (9-month paid over 9 months)||$26.66|
|26 Pays (bi-weekly)||$18.46|
What is auto-enrollment?
Due to changes in federal and state law enacted to encourage retirement savings, as of January 1, 2008, new or rehired benefits eligible faculty and staff will be automatically enrolled in a 403(b) tax-deferred annuity plan (TDA) after 90 days of employment unless the employee either enrolls in a TDA of their choice or completes an opt-out form within 90 days of hire OR is a participant in the VRS Hybrid Plan.
How do I choose a tax-deferred annuity plan?
The University neither endorses nor offers recommendations regarding
the selection of a tax-deferred annuity plan; the choice is that of the participant.
Contact the individual plan providers for more information.
Once you have decided on a plan provider, you will also need to select fund options, choosing a level of return and risk based on your expectations and financial requirements. Personal objectives, time horizon, tolerance for risk and need for income and liquidity should form the basis of personal investment strategies. If any of these factors change, you may wish to review your allocation of asset classes and investment funds to ensure that it remains appropriate.
Individual counseling sessions for TIAA-CREF and Fidelity Investment 403(b)s are available.
What is my Annual Contribution Limit?
What is my Annual Contribution Limit? You can contribute up to the maximum in both a 403(b) plan and the 457 DCP at the same time! General limits for the 403(b) and 457 plans are the same, but other catch-up provisions differ. The maximum contribution limit for persons under age 50 is $18,000 for 2015. If you are or will turn age 50 by the end of the 2015 calendar year, you can contribute $24,000 for 2015 under the Age 50+ Catch-Up provision.
Can I make changes during the year?
You can increase, decrease or stop contributions by submitting a GMU 403(b) Salary Reduction Agreement for 403(b) plans to Human Resources & Payroll. For the 457 plan, please call ICMA-RC at 1-877-327-5261.
To reallocate your investment funds, contact the plan provider directly.
Getting Started! How do I enroll?
1. Choose your plan type
- Pre-tax 403(b)
- Post-tax Roth 403(b) (Roth FAQ)
- Pre-tax Virginia 457(b) Deferred Compensation Plan
- Post-tax Roth 457 Deferred Compensation Plan
2. For the 403(b) plans, submit a GMU 403(b) Salary Reduction Agreement to your Benefits Administrator, MSN 3C3. For the 457(b) plan, please call ICMA-RC at 1-877-327-5261 or go online to create an account.
If you would like to meet with your local representative it's easy! Just make an appointment to meet them on campus.