All employees are eligible to participate in the voluntary tax sheltered savings plan.
Benefits you Receive
You may enhance your retirement plan savings through voluntary contributions to either a Tax-Sheltered Annuity or Deferred Compensation Program. You can voluntarily save additional pre-tax funds toward your retirement with either of these plans. The benefit is determined by your account balance and the payment option(s) you choose when you apply to receive benefits. Deferred Compensation Program is defined under Section 457(b) of the Internal Revenue Code. Tax Sheltered Annuity plans are defined under Section 403(b) of the Internal Revenue Code.
The benefit to these savings plans is that you do not pay income tax on allowable contributions until you begin to make withdrawals from the plan after you retire. The allowable contributions to a 403(b) plan reduce your taxable income. The earnings and gains on amounts in your 403(b) are also not taxed until you withdraw them.
The 2016 maximum contribution limit is $18,000for the 403(b) and $18,000 for the 457(b). There is an additional catch-up deferral of $6,000 for both plans for employees over the age of 50.
To begin saving, the employee must have an open account with one of the approved vendors. Available Vendors List and Contact Information**
To begin your tax sheltered annuity 403(b) or 457(b) salary reduction, you must log on to Retirement Manager, our third party administrator, to indicate the amount to be deducted each pay. Retirement Manager is a convenient, secure, web-based access point from which you can manage our retirement plan activities. You can use the website to change your contributions, request loan and withdrawal certificates or read financial planning information. To register and begin to use your account, visit My Retirement Manager. Although account balances are noted on the website it may vary slightly with your vendor based on the timing of the last contribution.
Employees who wish to enroll in the Ohio Public Employees Deferred Compensation Program must initiate all paperwork with Ohio DC as it does not coordinate with Retirement Manager.
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