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403(b) Retirement Savings Plans
The University of Maine System 403(b) retirement plans provided to eligible employees are tax-deferred plans that provide an opportunity to set retirement monies aside that are deferred for federal and state taxes. The University of Maine System participates in the non-profit annuities system, the Teachers Insurance and Annuity Association (TIAA) and College Retirement Equities Fund (CREF).
Eligible University employees may sign a salary reduction agreement (faculty & salaried employees or hourly-paid employees) which provides that the salary on which current income taxes are withheld is reduced by the amount of a contribution to a retirement account. The "tax sheltering" may cover the mandatory contribution employees make to TIAA-CREF or an additional amount an employee voluntarily allocates to a tax sheltered annuity subject to Internal Revenue Service regulations.
EGTRRA permits employees to participate in the retirement plans up to the calendar year maximums for each plan. For calendar 2008, the 403(b) maximum is the lesser of 100% of pay or $15,500; if you are already or will be age 50 in 2008, you are eligible for an additional $5,000 catch-up, for a total of $20,500. Employees may also contribute voluntarily to a 457(b) retirement plan up to the same limits. Therefore, you are allowed to contribute the maximum possible to both plans (generally $15,500 to each, or $31,000 total in 2008; if you are over age 50, the total would be $20,500 to each, or $41,000 total in 2008).
Eligible retiement plan participants may transfer up to 100% of the total of all contributions to the basic retirement plan to any of 4 alternate vendors (AV):
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1-866-776-2463 |
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1-800-343-0860 |
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1-800-922-9945 |
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1-800-892-5558 (Ext. 89272) |
To contribute to an alternate vendor, follow these easy steps:
- Contact your chosen vendor and set up an account.
- Complete a new University Salary Reduction Agreement. The new Agreement will replace any previous Agreement you submitted; therefore, you must restate the amount you want to tax-shelter on the new Agreement.
- Submit the form to your Campus Human Resources / Benefits Office. Your new investment options will begin once your form has been processed.
Faculty & Salaried Employees Retirement Plan
The program is mandatory for eligible faculty and salaried employees age 30 and older (voluntary prior to age 30 or hired after age 60). The University contributes an amount equal to 10% of the employee’s base salary, and the employee contributes 4% of base salary.
Hourly-Paid Employees Retirement Plan
The program is mandatory for eligible hourly-paid (biweekly-paid) employees hired on and after July 1, 1998. Employees must contribute 1% of their base salary. In addition, employees can voluntarily contribute up to an additional 3% of their base salary. The University matches these contributions dollar for dollar up to a maximum of 4% of the employee’s base salary.
After an employee has completed four years of service, the University of Maine System will provide an additional contribution to the plan equal to 6% of the employee’s base salary.
Voluntary Tax-Sheltered Annuities:
The University of Maine System offers employees the opportunity to supplement basic pension benefits by tax deferring on a voluntary basis. Contributions may be made up to the maximum permitted by the Internal Revenue Code (Section 403(b) and 415) with either TIAA-CREF or any of approximately 50 different companies, mutual funds, etc.
To contribute voluntarily to an alternate vendor, follow these easy steps:
- Contact your chosen vendor and set up an account.
- Complete a new University Salary Reduction Agreement. The new Agreement will replace any previous Agreement you submitted; therefore, you must restate the amount you want to tax-shelter on the new Agreement.
- Submit the form to your Campus Human Resources / Benefits Office. Your new investment options will begin once your form has been processed.
In addition, employees have the opportunity to use the University’s 457(b) deferred program on a voluntary basis. Contributions may be made up to the maximum permitted by the Internal Revenue Code (Section 457(b)) with any of the four current vendors.
Several brochures pertaining to the retirement plan are available from the Human Resources/ Personnel Office at each university.
Related Information
457(b) Deferred Compensation Plan
Faculty & Professional Retirement Plan Description (PDF)
Hourly-Paid Basic Retirement Plan (PDF)
Retirement Plan for Classified Staff (Formerly Defined Benefit Plan NCRP) (PDF)
Optional Retirement Savings Plan for Classified Employees (PDF)
Salary Reduction Agreement for Faculty & Professional Employees
Salary Reduction Agreement for Hourly-paid Employees
Contact Benefits
The above is a brief summary of benefits offered by the University of Maine System. Detailed brochures/booklets are available online, at the local University Office of Human Resources, or at the System Office of Human Resources.
If you have a question about your benefits coverage, benefit deduction amounts or any other benefit related question, contact your Campus Benefits Office. Be prepared to give your Employee ID number.
Last Updated: July 21, 2008