University of California, San Diego
May 27, 2004
UCSD faculty and staff now have improved options to save for retirement. In addition to the current 403(b), the new 457(b) Plan effectively doubles the amount of money that can be put into tax-deferred retirement savings.
Faculty and staff will have the choice to enroll in either or both plans, and there are separate contribution limits for each plan. For example, an employee contributing the maximum amount permitted to the 403(b) Plan ($13,000 in 2004) could also put up to $13,000 annually in tax-deferred savings in the new 457(b) Plan.
Like the existing 403(b) Plan, the new 457(b) Plan is designed to be self funded at no cost to the University or the retirement system. The plan's participants pay the ongoing administrative expenses.
The University is currently reviewing bids from several firms to implement and administer the new plan, and to provide record-keeping and investment education services. When the bid has been awarded, the University will announce the results and the effective date of the 457(b) Plan.
In the modern workforce, the ability to use tax-deferred savings is a critical piece of retirement planning. Last year, more than 50,000 UC employees voluntarily contributed to the 403(b) Plan, with 12,000 employees at many compensation levels contributing the maximum amount permitted by law. With the new 457(b) Plan, UCSD is pleased to offer increased opportunities for faculty and staff to prepare for the future.
If you have any questions on the new 457(b) Plan, please contact Jackie Edwards, Benefits Manager, campus Human Resources, at firstname.lastname@example.org or 858-534-5634. UCSD Healthcare employees may contact Ron Lieberman, Benefits Manager, UCSD Healthcare, at email@example.com or 619-543-7973.