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% \u2013 an immediate two for one match of your investment \u2013 for a total contribution of 15%. While this provides an excellent 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\u00a0403(b) Supplemental Retirement Program<\/a><\/strong>\u00a0and the\u00a0457(b) Deferred Compensation Plan<\/a><\/strong>. Enrollment in one or both optional programs can help employees meet their retirement savings goals, making it easier for them to 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.\u00a0Please see the\u00a0403(b) Base Retirement Program Eligibility Chart<\/a>\u00a0for more details.\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"\n
A:<\/strong>\u00a0Employees 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.\u00a0Employees wishing to contribute a certain amount, such as $100 per paycheck, can use\u00a0the calculator<\/a>\u00a0to<\/span> convert a dollar amount to a percentage.
Maximum contribution amounts are set by the Internal Revenue Service (IRS) each year.\u00a0Information on current IRS limits, including Age 50 Catch-up contributions, can be reviewed at\u00a0maximizing your retirement plan contributions<\/a>.
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A:<\/strong>\u00a0We encourage employees to work with their financial advisors or\u00a0retirement vendors<\/a>\u00a0for assistance in deciding how much more to contribute.\u00a0You may be surprised how a small contribution over a long time can impact your retirement account balance, and yo<\/span>u may want to\u00a0take advantage of compounding earnings\u00a0<\/a>as you save for retirement.
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A:<\/strong>\u00a0Generally, the differences are\u00a0when<\/strong>\u00a0an individual can access the funds and the\u00a0loan 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\u00a0Retirement Plans Comparison chart<\/a>.
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A:<\/strong>\u00a0Yes, retirement plan elections can be made at any time. This includes beginning or canceling enrollment, increasing or decreasing contribution percentages, and changing vendors.\u00a0Depending on payroll schedules and deadlines, there may be a delay when contributions start or stop. For more detailed information, please visit the HR website at\u00a0Enroll or Make Changes to Retirement Plans<\/a>.
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