The University System of Maryland (USM) has recently announced that Fidelity Investments 457(b) Deferred Compensation Plan has finally been approved and will be offered effective July 1, 2005 as part of the existing Tax Deferred Supplemental Retirement (SRA) Program. As a result of this delayed approval, all enrollment forms for the Fidelity 457(b) that were submitted at the end of 2004 in anticipation of the plan?s availability earlier this year will not be processed. In order to participate in this plan, interested employees will have to complete and submit to the TU OHR a new application and enrollment forms, which are available upon request from the TU OHR Benefits Unit.
Please note that at this time, the 403(b) Plan with Fidelity still has not been approved, so it remains unavailable. We will notify employees in future Daily Digests of any changes relating to the opening of the Fidelity 403(b) plan as those decisions are made by USM.
All faculty and staff members, both regular and contingent/part-time, are eligible to participate in the SRA Program with plans offered by AIG-Valic, MD Supplemental Retirement Plans-Nationwide, TIAA-CREF and now Fidelity Investments. New enrollments and changes can be done at any time throughout the year.
Changes to the IRS Code in 2002 made these tax deferred programs, which include 403(b), 457(b) and 401(k) plans, more attractive than ever before. In 2005, the basic maximum allowable contribution is $14,000 for all employees while those over 50 years old are able to contribute an additional $4,000. For those who are looking to maximize their pre-tax salary contributions, it?s possible to double their basic maximum by contributing both to a 457(b) plan and either a 403(b) or 401(k) plan. Of course, smaller contributions can be made with the minimum amount being $5.00 per pay period.
And, for members of the MD State Employee Pension-Modified basic retirement plan, the State will match, on a dollar-to dollar basis up to a maximum of $400, employee contributions made to any of the available SRA plans.
Questions or concerns should be directed to Dave Curtis, x4-6018 or {dcurtis@towson.edu}, or Gail Price, x4-6017 or {gprice@towson.edu}, in the TU Benefits Unit.
