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403(b) Retirement Savings Plans
ANNOUNCEMENTS
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.
Eligible University employees may sign a salary reduction agreement (faculty & salaried employees or hourly-paid employees) to tax defer their contributions. The "tax sheltering" may cover the mandatory contribution employees make to an approved vendor as well as an additional voluntary amount subject to Internal Revenue Service regulations.
For calendar 2009, the 403(b) maximum is the lesser of 100% of pay or $16,500; if you are already or will be age 50 in 2009, you are eligible for an additional $5,500 catch-up, for a total of $22,000. 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.
Current approved vendors are:
TIAA-CREF 1-800-842-2252
ING Retirement Services 1-866-776-2463
Fidelity Investments 1-800-343-0860
VALIC 1-800-892-5558 (Ext. 89272)
Before you can contribute to an approved vendor, you must set up an account with that vendor.
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 hourly 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 the three alternate vendors listed above. (TSA Guidelines)
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
Incentive Retirement Plan Policy
Partial/Phased Retirement Plan Policy
457(b) Deferred Compensation Plan
Faculty & Professional Retirement Plan Description (PDF)
Hourly-Paid Basic Retirement Plan (PDF)
Optional Retirement Plan for Classified Staff (Formerly Defined Benefit Plan NCRP) (PDF)
- Classified Retirement Plan Payout Options
- Classified Retirement Plan Application for Benefits
- Classified Retirement Plan Designation of Beneficiary
Salary Reduction Agreement for Faculty & Professional Employees
Salary Reduction Agreement for Hourly-paid Employees
Social Security Retirement Estimator
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: October 14, 2009