Voluntary Tax Sheltered Retirement Plans are available, through payroll deduction to those employees interested in additional savings and investment plan opportunities.  Governors State University offers several vendor choices for 403 (b) plans, and/or a qualified 457 tax deferred plan sponsored through the State Of Illinois.  As always, we encourage employees to consult confidentially with the product vendors and a personal tax or investment advisor, prior to making investment decisions.

The Internal Revenue Service issued Final 403(b) Regulations that took effect January 1, 2009. To comply with these regulations, the University updated the Plan to comply with final Income Tax Regulations issued under section 403(b) of the Code.

403(b) Plan in Brief 

As a participant in the Governors State University 403(b) Plan you may contribute pre-tax funds to the  plan.

·Participation in this plan is strictly voluntary and does not reduce any of your University benefits based on full salary such as retirement, life insurance, disability or survivor benefits.

·Allows you the opportunity to accumulate additional retirement funds, as a supplement to your State Universities Retirement System (SURS) pension.

·Provides you to contribute a flat dollar amount, determined by you, which is deducted from your paycheck. The amount of income that can be contributed is subject to IRS limitations. (This is a combined limit of both traditional (pre-tax) and Roth (post-tax) contributions.)

·You may begin participating in the 403(b) plan at any time.

·A 403(b) account is an individual account with no vesting schedule - you decide how much to contribute and how to invest your contributions.

Eligibility 

To be eligible to participate in the Governors State University Supplemental 403(b) Retirement Plan, you must currently receive compensation from the University. Contributions to your 403(b) account will be deducted from your pay while the plan is effective. Each individual who is a common law employee who receives Compensation reportable on a Form W-2 for services provided to the University, except Student Teachers and Graduate Assistants, will be eligible to participate in this Plan.

Why Participate in the 403(b) Plan? 

During retirement employees can estimate to receive approximately 40 – 50% of their average wage. If you know that you can’t live off of half of your salary now, then you know it is important to start saving something each paycheck for additional retirement savings above the mandatory SURS amount.

Many retirement experts suggest that a retirement income level of at least 70% of your final salary is a good target for people starting to save for retirement. Many people who retire at age 65 could live 20 or more years in retirement. Proper planning for those years is essential to ensuring that you have the income you need. Depending on your personal goals, SURS alone may not meet your retirement objectives.

Investment Vendor Choices - to open an account please contact the below vendors directly: 

Fidelity Investments           www.fidelity.com/atwork 800.343.0860 hit “0” to open  an account

The Legend Group, Inc. — Don Wade, 800.835.2158

TIAA-CREF   Patrick Windle 800.842.2005, x5666

VALIC          John Olson, 708.899.3530   or    800.892.5558 Ext. 89470

Forms:
403B Salary Reduction Form