Changes to the IRS Code in 2002 made Supplemental Retirement/Tax Deferred Investment plans (SRAs) more attractive than ever before. All faculty and staff members, both regular and contingent/part-time, are eligible to participate in SRAs which are offered by the Maryland State Supplemental Retirement Agency and the University System of Maryland (USM). The State plans are administered by Nationwide and include a 457(b) Deferred Compensation plan, a 403(b) Tax Deferred Annuity plan and a 401(k) Savings/Investment plan. The USM offers 403(b) and 457(b) plans from AIG (VALIC) and TIAA-CREF and a 457(b) plan from Fidelity Investments.
New enrollments and changes can be done at any time throughout the year. 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.
As of July 2005, members of the Maryland State Employees Pension-Modified (EPS-Mod) basic retirement program are eligible to receive an employer match for their personal SRA contributions up to a maximum of $400 this fiscal year. Members of the Teachers Retirement/Pension, Employees Retirement, Optional Retirement Plan and Law Enforcement Officers Pension are not eligible for this match.
A new summary packet of information on the SRA program has been sent to all faculty and staff employees through campus mail. Be sure to review the information and also take advantage of the personal one-on-one advising sessions offered again this semester. These sessions are a great way to find out more about how the changes in the tax law affects the plan(s) of your choice and/or to discuss details of your current accounts with your plan representative. Appointments are necessary for these 30-45 minute sessions and are available on a first come, first served basis by following the guidelines on the advising session schedule in the packet. The schedule can also be accessed by going to the Benefits page of the TU OHR Web site at {http://wwwnew.towson.edu/adminfinance/hr/benefits/index.asp} and clicking on Supplemental Retirement/ORP 1:1 Schedule under Forms.
Questions should be directed to Dave Curtis, x4-6018 or {dcurtis@towson.edu}, or Gail Price, x4-6017 or {gprice@towson.edu}.
