Supplemental Retirement Account Information
Did you know you can save even more for retirement beyond your regular retirement contribution by opening and contributing to a Supplemental Retirement Account?
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 4 percent of salary
6 percent of salary* 6 percent of salary*
Note: a mid-level employee contribution choice (4 percent) has been approved and will be available as an option later this fall. More information to come.
* After one full year of the participation at the 6 percent level, the USNH contribution will increase to 9 percent.
Supplemental Retirement Accounts - Employees can contribute additional tax-deferred dollars beyond their regular retirement contribution by opening a supplemental retirement account, as long as the employee is already contributing to the retirement plan at the 6 percent level. A Supplemental Retirement Account (SRA) through the 403(b) is available as well as a 457(b) Deferred Compensation Plan. These accounts have no employer match.
Per the Internal Revenue Service, employees less than 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 as well as their 457(b) plan annually. While the USNH retirement 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.
To enroll, sign in at www.myusnhbenefits.net and click on ‘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. The TIAA-CREF SRA and the 457(b) accounts require separate online applications. Instructions for enrolling at the vendor sites can be found at http://www.unh.edu/hr/retire.htm#instructions.
Additional information is available on the Human Resources website at http://www.unh.edu/hr/retire.htm or by contacting Sue Nolan at 2-0504 or Kristie Camacho at 2-0509. We strongly encourage employees to take advantage of these benefits, so please enroll today. We are happy to provide enrollment assistance and to answer any questions you may have.