Basic Retirement - 401(a)
The State of WV requires participation in a tax-sheltered retirement program. The Higher Education Policy Commission (HEPC) makes decisions regarding the offered programs. Benefit eligible employees contribute 6 percent of their gross pay into a basic retirement plan and Fairmont State/Pierpont matches the contribution by 6 percent. The employee determines the investment allocations among the accounts offered by the plan. (see note below)
Supplemental Retirement 403(b)
Fairmont State/Pierpont provides employees the opportunity to save additional retirement money through a Supplemental Retirement Account (SRA). Contributions are tax-sheltered and remitted through payroll reduction. Participation is voluntary and is a means of increasing retirement savings through tax deferral. Upon separation from service or at age 59 1/2, participants may begin annuity income or make cash withdrawals from supplemental monies. Loans are also available.
The ROTH 403(b) can be an attractive savings option for employees who expect to be in the same or greater tax bracket when they retire. Contributions to the ROTH 403(b) option are made on an after-tax basis and qualified earnings on these contributions are distributed “tax-free”, if you are at least age 59 1/2 (or disabled) and the withdrawal is made five years after making your first Roth contribution. Employees with both an SRA and a Roth 403(b) will coordinate the maximum contribution amount.
*All classes of employees receiving W-2 wages are eligible for a 403(b) plan.
Deferred Compensation Plan 457(b)
457(b) Deferred Compensation Plans are nonqualified, tax-deferred compensation plans that function in many ways that are similar to any other retirement plan, and offer many of the same tax advantages to employees. Employees can contribute to both a 403(b) and a 457(b). Higher wage earners will benefit by having both plans. The 457(b) public plan has no triggering events; upon termination of employment, monies are available despite age with no penalties.
Enrollment and plan contribution changes can occur at any time during the year.
NOTE: TIAA-CREF and Great-West Retirement are the vendors available for enrollment in the retirement plans. Employees may contribute the maximum contribution amounts allowed by IRS to both the Supplemental 403(b) plan and the Deferred Compensation 457(b) plan.
Visit the TIAA-CREF web site: www.tiaa-cref.org or call (800) 842-2776
Visit the Great-West Retirement web site: www.gwrs.com or call (800)537-2033
Employees age 55 and over with five or more years full time service, and who retire, can apply for Phased Retirement and work 1/3 time at 1/3 salary. Human Resources and the appropriate President must approve the request. Generally the request must be made six months in advance of the proposed effective date.