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 qualified 457 (b) tax-deferred plans sponsored through the State of Illinois and the State Universities Retirement System (SURS). As always, we encourage employees to consult confidentially with the
product vendors and a personal tax or investment advisor before making
investment decisions.
The Internal Revenue Service limit on contributions for 2025 is $23,500 for employees under the age of 50 and $31,000 for employees turning 50 or more. Employees may participate in both plans and contribute the maximum amount to each, i.e. $47,000 for an employee under the age of 50 maximizing contributions to both a 403(b) and 457(b) plan.
403(b) and 457(b) Plans in Brief
Participation
in these plans is strictly voluntary and does not reduce any University
benefits such as retirement, life insurance, disability, or
survivor benefits.
·Allows the opportunity to accumulate additional retirement funds as a supplement
to your State University Retirement System (SURS) pension.
·Enrollment and adjustments to contributions can be done at any time throughout the year.
·403(b) plans are flat dollar amount contributions and are pre-tax, i.e. taxes are calculated after deducting the contribution amount from your salary.
457(b) deferred compensation plans can be either pre-tax or post-tax, a flat dollar amount or a percentage of income, and include a Roth option.
Eligibility
To be eligible to participate in the Governors
State University 403(b) or 457(b) optional retirement savings plans you must currently
receive compensation from the University. Contributions to your 403(b) or 457(b) account
will be deducted from your pay. Graduate Assistants, Student Workers, and Extra-Help employees are excluded from participating in these plans.
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. 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.
403(b) Approved Investment Vendors -
to open an account please contact the vendors directly:
Fidelity800.343.0860 Group number 60761
Lincoln Investments Don Wade, 630.620.6100 ext. 5714 Group number 6046
TIAA-CREF - Ralph Melendez 888.842.7782 Group number 356476
Corebridge (formerly Valic/AIG) - Nick Boney,
219.299.5440 Group number 68931
Forms:
403B Salary Reduction Form
457(b) Approved Investment Vendors:
State of Illinois managed by Empower Financial or 833.969.4532
SURS managed by Voya Financial or 800.613.9543
Questions can be directed to benefits@govst.edu or 708.534.4100.