Important Notice: Please see attached documents for special information for employees who participate in VALIC for plan changes effective 7/15/2016:
Arkansas State University employees participate in the Arkansas State University System DC Retirement Plan which is a 403(b)plan.
The University contributes 10% and each employee contributes 6% to the plan. Employees have the option of contributing to TIAA or VALIC. Employees vest in the university contribution after 12 months of service. Employee contributions vest immediately.
Please visit the TIAA and VALIC websites to determine which plan is best for you. Employees may also contribute additional funds to a supplemental retirement plan on a tax-deferred basis. This benefits employees now by reducing their federal and state taxable income, as well as in the future, as there will be additional assets in the retirement plan. Employees may contribute to both a 403(b) and a 457 plan which gives employees under age 50 the opportunity to save up to an additional $36,000 annually ($18,000 in each plan) and those age 50 plus the opportunity to save $48,000 ($24,000) in each plan. Please note that contributions to the 403(b) plan are limited to an annual limit of employee mandatory, employee voluntary and employer contributions, and some employees may not be eligible to contribute the maximum noted above.
Employees may withdraw funds from the retirement plan at separation of service or at age 59 1/2. Employees may borrow against their retirement loan, however, effective with loans initiated after January 1, 2016, employees may not have more than three outstanding loans, including loans in default. Hardship withdrawals are also available. Both loans and hardship withdrawals are subject to IRS regulations. Defaulted loans and hardship withdrawals are subject to regular federal and state taxes as well as a 10% penalty if withdrawn before age 59 1/2.
For more information contact your human resources office or a representative at TIAA or VALIC.