Human Resources and Payroll

Benefits

Supplemental Retirement Plans

What are Supplemental Retirement Plans?

Supplemental retirement plans allow you 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)

The University participates with seven TSA providers for 403(b) accounts. The 457 Deferred Compensation Plan is administered by the Virginia Retirement System and Great-West Retirement Services.

What is the Cash Match Plan?

The Cash Match Plan is available to salaried employees enrolled in the TIAA-CREF, Fidelity, or the 457 DCP. An employee contribution of $40 or more per pay period will generate a $20 contribution from Mason. Employees contributing less than $40 will receive a 50% employer cash match. (Please note: Nine-month faculty paid over 18 payrolls must contribute a minimum of $53.32 per pay period to receive the maximum match of $26.66 and employees paid bi-weekly must contribute a minimum of $36.92 per pay period to receive the maximum match of $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.

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?

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 in 2008 is $15,500. If you are or will turn age 50 by the end of the 2008 calendar year, you can contribute 20,500 under the Age 50+ Catch-Up provision. These general limits will increase incrementally through 2008.

If you have 15 or more years of service, you may be able to exceed the maximum contribution limit to a 403(b) plan by up to $3,000 a year. The 457 DCP offers a Standard Catch-Up for persons near retirement. Consult with the plan representative or a personal financial advisor to determine if you are eligible for these additional catch-up provisions.

Can I make changes during the year?

You can increase, decrease or stop contributions by submitting to Human Resources a GMU 403(b) Salary Reduction Agreement or the GMU 457 Payroll Authorization Form. To reallocate your investment funds, contact the plan provider directly .

Getting Started! How do I enroll?

1. Choose a plan provider.
2. Enrollment packets for TIAA-CREF, Fidelity, and Vanguard are available from Human Resources. Submit enrollment forms and a GMU 403(b) Salary Reduction Agreement to your Benefits Administrator, MSN 3C3.
3. To enroll in one of the 403(b) plans, contact the plan provider representative.
4. To enroll in the 457 DCP, complete the enrollment form. Contact your local representative for more information.