Important information about your Penn State retirement program

February 05, 2021

As you know, some of the benefits of being a Penn State employee are the multiple options available to save for your retirement. All full-time and part-time employees are eligible to participate in both supplemental retirement plans, regardless of whether you are enrolled in the State Employees Retirement System (SERS) or the Penn State Alternate Retirement Plan (ARP). Taking advantage of the additional retirement plan options that are available to you can help optimize your saving goals.

Supplemental Retirement Plans

The Penn State 403(b) Tax-Deferred Annuity Plan and The Penn State 457(b) Deferred Compensation Plan afford you the opportunity to save more towards your retirement goals. You may enroll in the plans, stop your contributions, or change your deferrals at any time.

  • Eligibility - ALL full-time and part-time employees are eligible to participate in both supplemental retirement plans, regardless of whether you are enrolled in SERS or the ARP.
  • Contributions – Your contributions to the Penn State 403(b) Tax-Deferred Annuity Plan and The Penn State 457(b) Deferred Compensation Plan are separate from, and in addition to, contributions you may be making to your mandatory retirement plan with Penn State. These supplemental retirement plans are a great way to reduce your taxable income today, while ensuring you save enough to retire comfortably.
  • Contribution Limits - Please be aware that the IRS limits the amount you may defer under these and other plans in any tax year. Under IRS regulations for 2021:
    • You may contribute up to a maximum of $19,500 if you are under age 50 to The Penn State Tax-Deferred Annuity Plan and/or The Penn State 457(b) Deferred Compensation Plan. If you are age 50 or will turn 50 any time in 2021, you may contribute an additional $6,500 to a maximum of $26,000.
    • If you participate in more than one 403(b) and/or 401(k) plan, you are personally responsible for tracking and reporting the total amount of your contributions for all plans in which you participate to avoid exceeding the limit. Employees are permitted to maximize contributions to The Penn State Tax-Deferred Annuity Plan and The Penn State 457(b) Deferred Compensation Plan concurrently for a total annual deferral of $39,000 ($19,500 x 2) or $52,000 ($26,000 x 2) for 2021.
    • Note also that the sum of all your contributions, and those of your employer(s), to all 403(b)/401(k) plans that you participate in are limited to $58,000 if you are under age 50, and $64,500 if you are over age 50, on your first $290,000 of reportable income for 2021.

Consider Enrolling Today

To enroll, visit TIAA.org/psu or call TIAA at 800-842-2252, weekdays, 8 a.m. to 10 p.m. and Saturday, 9 a.m. to 6 p.m. (ET).

 

Last Updated February 05, 2021