Human Resources & EO
Supplemental Retirement Plans 403(b) and 457(b)
Employees can voluntarily put additional money from their pay checks on a pre-tax basis into one or more supplemental retirement plans offered through the Commonwealth.
Tax-deferred annuity plans or TDAs are tax-deferred retirement plans available to employees employed in an educational capacity. Employees can contribute by payroll deduction a portion of before-tax salary into a TDA plan up to certain limits.
As of July 1, 2007, all new participants must select one of the contract providers of the Commonwealth 403(b) Plan:
AIG Retirement*
AXA-Equitable*
Fidelity
ING*
Lincoln Financial*
MetLife*
TIAA-CREF*
457 Plan:
The 457 deferred compensation plan allows Commonwealth of Massachusetts' employees to set aside a portion of earnings through a payroll deduction as an investment for retirement. The maximum contributions are defined by the IRS according to specific guidelines, including additional contributions if the individual is age 50 or older.
The office of the State Treasurer manages the Commonwealth's 457 Deferred Compensation SMART Plan. Great-West* is currently the third-party administrator for the SMART Plan.
Dates that these providers will be on campus are published via campus email once a month. Fidelity is the only provider currently who does not come on campus. Provider information can be obtained in the human resources office located in the Annex Building behind the Sullivan Building on North Campus.
Applications must be mailed to the provider directly. Employees can pick up enrollment materials in the Human Resources building located directly behind the Sullivan Building on North Campus. Employees will additionally need to complete a Salary Reduction Agreement authorizing the payroll department to take money from their checks and direct payroll as to which provider the funds are to go to.
Contact Information for Providers:
Please contact these providers and meet with them to discuss the various plan options available to you. Employees can tax shelter the maximum allowed by the IRS each year in both a 403(b) and a 457 account. Employees over the age of 50 can put additional funds in above the normal yearly contribution levels. For employees who are retiring or leaving the university that have large vacation balances or retiring and receiving 20 percent payout of their sick leave in retirement or both, rather than receiving a lump sum payout of these funds, employees can now tax shelter their vacation and sick leave payout in a 403(b) and a 457 plan.
Please contact the benefits coordinator at the university for additional information, plan documents and salary reduction agreements.
