Whether this is your first job out of school, or you\u2019ve been working for 40+ years, it\u2019s important to make sure you\u2019re taking advantage of every opportunity to prepare for your eventual retirement. Most benefit-eligible employees* are aware of and enrolled in the 403(b) Base Retirement Program (BRP) offered by MSU, which consists of a 5% employee contribution of your eligible compensation and a generous university matching contribution of 10% – an immediate two for one match of your investment \u2013 for a total contribution of 15%. While this provides a great foundation for your retirement savings, most employees will eventually want to consider additional savings options for their retirement.<\/p>\n\n\n\n
In addition to the BRP, eligible employees also have the option of enrolling in two additional retirement programs: the 403(b) Supplemental Retirement Program<\/a><\/strong> and the 457(b) Deferred Compensation Plan<\/a><\/strong>. Enrollment in one or both optional programs can help employees meet their retirement savings goals so they can more easily transition to retirement.<\/p>\n\n\n\n We\u2019ve compiled a list of the top questions we receive as employees think about enrolling in these optional plans:<\/p>\n\n\n\n For more information about available retirement plans from MSU, please review the retirement resources on the HR website<\/a> and the MSU Retirement Plans Enrollment Guide<\/a>. Find instructions to enroll in these optional retirement plans<\/a> at any time throughout the year. Please contact the HR Solutions Center with any questions at SolutionsCenter@hr.msu.edu<\/a> or 517-353-4434.<\/p>\n\n\n\n *Note: Certain types of employees are excluded from participating in the 403(b) Retirement Plan. Please see the 403(b) Base Retirement Program Eligibility Chart<\/a> for more detail. <\/p>\n","protected":false},"excerpt":{"rendered":"\n
A:<\/strong> Employees may elect any percentage contribution, as all contributions are based on a percentage of eligible pay. For example, 1.50% would be an acceptable contribution election. Employees wishing to contribute a certain amount, such as $100 per paycheck, can use the calculating tool<\/a> for converting a dollar amount to a percentage.
Maximum contribution amounts are set by the Internal Revenue Service (IRS) each year. Information on current IRS limits, including Age 50 Catch-up contributions, can be reviewed at maximizing your retirement plan contributions<\/a>.<\/li>\n<\/ul>\n\n\n\n\n
A:<\/strong> We encourage employees to work with their financial advisors or retirement vendors<\/a> for assistance in deciding how much more to contribute. You may be surprised how a small contribution over a long period of time can impact your retirement account balance and may want to take advantage of compounding earnings<\/a> as you save for retirement.<\/li>\n<\/ul>\n\n\n\n\n
A:<\/strong> Generally, the differences are when<\/strong> an individual can access the funds and the loan provisions<\/strong>. Also, the 403(b) Supplemental contributions must be added with the Voluntary 403(b) Base contributions when calculating the IRS maximum contributions, whereas the 457(b) Deferred Compensation Plan has a separate IRS maximum limit. A more detailed comparison of the two different optional accounts can be found in the Retirement Plans Comparison chart<\/a>.<\/li>\n<\/ul>\n\n\n\n\n
A:<\/strong> Yes, retirement plan elections can be made at any time. This includes beginning or canceling enrollment, increasing or decreasing contribution percentages, and changing vendors. Depending on payroll schedules and deadlines there may be a delay when the contributions start\/stop. More detailed information can be found on the HR website at Enroll or Make Changes to Retirement Plans<\/a>.<\/li>\n<\/ul>\n\n\n\n