457(b) Deferred Compensation Plan
If you already maximize your retirement contributions to the CRP and SRP, and you are eligible to participate in the 457(b) Deferred Compensation Plan (the 457(b) Plan), you may take advantage of this additional tax-deferred savings opportunity.
The 457(b) Plan is offered to benefits-eligible employees whose benefit base salary is at least 175% of the Social Security taxable wage base for the immediately preceding year. For calendar year 2020, benefits-eligible employees having a benefit base salary equal to or greater than $232,575 are eligible.
The 457(b) Plan is a non-qualified plan of deferred compensation. Participation is voluntary. Unlike the University's retirement plans, 457(b) Plan enrollments are accepted for January 1 and July 1, only. Eligibility is determined each October (for January enrollments) and April (for July enrollments).
If you are eligible, you will receive a mailing each October telling you that it is time to enroll for the coming year. Your 457(b) enrollment does not automatically continue from one year to the next. You must make a new election each year if you wish to take advantage of this program. Eligible employees not already enrolled for the current year also will receive a mailing in May telling them how they can enroll for the July 1 entry date.
Should you wish to enroll, you must complete the 457(b) Plan Salary Reduction Agreement and establish a TIAA account specifically for the 457(b) Plan. Your 457(b) Plan deferrals must be invested separately from your CRP and SRP assets.
Your 457(b) Plan deferrals are in addition to the amount that you contribute to the CRP and SRP. Your total 457(b) Plan deferrals for the calendar year cannot exceed the maximum permitted by federal tax law ($19,500 for 2020).
The University does not contribute to the 457(b) Plan. You are always fully vested in your 457(b) Plan benefit. The 457(b) Plan does not accept rollovers from other plans.
For more information, please refer to the 457(b) Deferred Compensation Plan Enrollment Guide.