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Deferred Compensation Retirement Plan: 457(b)
Faculty and Staff, regardless of age, length of service, or benefits FTE may participate in the Deferred Compensation Retirement 457(b) Plan as long as they have “elected to defer” the maximum 402(g) amount allowable to the university’s Supplemental Retirement 403(b) Plan.
457(b) Deferred Compensation Plan contributions are withheld each pay period as a flat dollar amount ($50 pay period minimum) up to the Internal Revenue Service’s maximum allowance. Contributions made to the 457(b) Deferred Compensation Plan are withheld on a voluntary basis and are made on a tax-deferred basis, thus reducing federal and state income tax. You can change your 457(b) contribution amount anytime during the year.
457(b) Effective Date of Participation
Participation is effective on the first day of the month following submission of a Deferred Compensation Retirement 457(b) Plan Salary Reduction Agreement and vendor online account application(s). A Deferred Compensation Retirement 457(b) Plan Salary Reduction Agreement (includes both a new or contribution change) must be received at the Campus Benefits Office by the last working day of the month in order for that contribution to start the following month.
For example, a Deferred Compensation Retirement 457(b) Plan Salary Reduction Agreement that is received by February 28 will be effective March 1. A Deferred Compensation Retirement 457(b) Plan Salary Reduction Agreement that is received on March 1 or later will be effective April 1.
A participant’s Deferred Compensation Retirement 457(b) Plan Salary Reduction Agreement will terminate December 31st of each year. Participants must complete a new Deferred Compensation Retirement 457(b) Plan Salary Reduction Agreement annually in order to participate in the Plan (Salary Reduction Agreements may not be carried over into the next Plan year).
Allocating 457(b) Plan Contributions
You may allocate contributions among or between TIAA and Fidelity Investments in any whole-number percentage, including full allocation to any option. Once participation begins, allocation changes of future premiums may be made at any time by contacting the respective investment company.