Your USNH Retirement Benefits
April 14, 2010
The University System of New Hampshire (USNH) offers its benefits-eligible faculty and staff the opportunity to participate in a defined contribution 403(b) retirement plan. Within the plan a variety of investment opportunities permit employees to take greater personal control of their retirement program while setting aside tax-deferred dollars. Employees may participate with one or both of the defined contribution providers, TIAA/CREF or Fidelity Investment Corporation.
USNH and the faculty/staff member contribute a fixed percentage of regular budgeted salary to the retirement plan on a bi-weekly basis. There are two levels of contributions to choose from:
Employee contribution USNH contribution
2 ½ percent of salary 5 percent of salary
6 percent of salary* 6 percent of salary*
* After one full year of the participation at the 6 percent level, the USNH contribution will increase to 11 percent.
Supplemental Retirement Contributions –
Per the IRS, employees under 50 years old can tax-defer up to $16,500 and employees 50 years old and over can tax-defer up to $22,000 in their 403(b) plan annually. This can be achieved by contributing to a supplemental retirement account. As long as the employee is already contributing to the retirement plan at the 6 percent level, additional funds can be added to a Regular Investment Contribution (RIC) account or a Supplemental Retirement Account (SRA). These accounts have no employer match.
While the USNH 403(b) plan only allows withdrawals upon termination or retirement, the SRA has a loan and hardship feature which, under certain circumstances, may allow access to the funds in the SRA only.
Some of the benefits of enrolling in the USNH retirement program are:
- Contributions are deducted from your pay on a pre-tax basis. You will not pay federal income tax on the funds until they are withdrawn.
- Contributions are deducted directly from your pay and transferred to your retirement account.
- Online access to your account.
- Vendor representatives are available on campus for individual consultations.
- Ability to contribute supplemental funds to achieve maximum allowable IRS annual limits.
- When participating at the 6 percent level for a year, USNH increases their contribution to 11 percent.
To enroll, sign in at www.myusnhbenefits.net and enroll in or change retirement benefits. If enrolling in the USNH retirement plan for the first time an account with TIAA-CREF and/or Fidelity will need to be opened as well. Instructions for enrolling at the vendor sites can be found at http://www.unh.edu/hr/retire.htm .
Additional information is available on the Human Resources website at http://www.unh.edu/hr/retire.htm or by contacting Kristie Camacho at 2-0509 or Sue Nolan at 2-0504. We strongly encourage employees to take advantage of this benefit so please enroll today. We are happy to provide enrollment assistance and to answer any questions you may have.