Supplemental Retirement
Eligibility
All employees are eligible to make tax-deferred contributions to both a 403(b) tax-deferred annuity plan and/or a 457(b) deferred compensation plan. Contributions to these plans are in addition to and separate from contributions that are made to your Penn State retirement plan.
You may begin making voluntary contributions to a supplemental retirement plan at any time during the year. You also may change or stop your voluntary contributions at any time.
The Transition Guide outlines the details regarding consolidation of all retirement investment vendors to a single vendor, TIAA-CREF. All questions regarding the Penn State TIAA-CREF Retirement and/or Supplemental Retirement plans should be directed to TIAA-CREF at 1-800-842-2252, Mon through Fri, 8 am - 10pm and Sat from 9 am - 6pm.
| Provision | 403(b) Tax-Deferred Annuity | 457(b) Deferred Compensation |
|---|---|---|
| Investment Company | ||
| Contribution Limits | Annual salary reduction contributions are limited to $17,000 in 2012 |
Annual salary reduction contributions are limited to $17,000 in 2012 |
| Age 50 Catch-up Provision | If you are age 50 or older, you may contribute an additional $5,500 above the maximum annual deferral amount. This amount may be adjusted for inflation | |
| Distributions | Distributions must meet a qualifying event:
|
Distribution must meet a qualifying event:
|
| Rollovers | Rollovers are allowed if the guidelines of a qualifying event are met. Employer approval may be required. | Rollovers are allowed from a governmental plan if the guidelines of a qualifying event are met. Employer approval may be required. |
| Additional Catch-up Provision (Cannot be used with the Age 50 and Over Catch-up Provision) |
"15 Year Rule": An additional amount up to $3,000 may be available if you have 15 years of service with a qualified organization and previous years' deferrals have averaged less than $5,000. (Not to exceed $15,000.) | "3 Year Rule": An additional amount up to $12,000* may be available if you have not deferred in previous years when you were eligible for a 457(b) Plan. This provision may be used only in the three years before you attain normal retirement age. |
| Loans | Loans are available to the extent provided by the annuity contract or custodial account. | |
| Withdrawals While Employed at Penn State (Considered only when an employee has no other resources, including Plan Loans) |
Withdrawals can be made any time after age 59½ or in the event of a Qualified Financial Hardship: Unreimbursed medical expenses, purchase of a primary residence, tuition expenses, funeral expenses, or prevention of a foreclosure or eviction. | Withdrawals can be made any time after age 70½ or in the event of unforeseen emergencies: unreimbursed medical expenses, casualty loss, sudden and unforeseeable emergency, funeral expenses, or prevention of a foreclosure or eviction. |
| Distributions | Distributions can be done any time after separation from state employment, financial hardship, death, at 59½, or at age 70½. You may roll over funds into other types of employer-sponsored plans, IRAs, or other eligible options. Penalty applies for withdrawals prior to age 59½. | Distributions can be done any time after separation from state employment, financial hardship, death, or at age 70½. You may roll over funds into other types of employer-sponsored plans, IRAs or other eligible options. |
Enrollment
- Determine if you will contribute to a 403(b) tax-deferred annuity, a 457(b) deferred compensation plan, or both
- Complete an enrollment form
- Complete a Voluntary Salary Reduction Agreement indicating the amount of your contribution from each pay
TIAA-CREF Group Supplemental Retirement Annuity and TIAA-CREF Deferred Compensation applications are available for online enrollment
Managing Your Contributions/Investments
To Change Your Contributions
Complete a new Voluntary Salary Reduction Agreement indicating the amount of your new contribution from each pay.
To Manage Your Investments
Contact the company with whom you’re investing or make your changes online at your investment company’s web site.
Complete a new enrollment form and Voluntary Salary Reduction Agreement if you’re changing to another of the approved investment companies.
