Supplemental Retirement Plans

(Supplemental Retirement Plan FAQ Sheet)

As an eligible employee of Medical College of Georgia, you are permitted to participate in a 403(b) and/or 457(b) tax deferred retirement program.

WHAT IS A 403(b) AND 457(b) PLAN?

WHY CONTRIBUTE TO A 403(b) AND/OR A 457(b)?

WHAT COMPANIES CAN I PARTICIPATE WITH?

HOW MUCH CAN I CONTRIBUTE?

HOW DO I GET MORE INFORMATION?

What is a 403(b) and 457(b) plan?

A 403(b) and a 457(b) plan is a tax-deferred retirement plan available to employees of educational institutions and certain non-profit organizations. In this plan, you can make pretax contributions for retirement savings.

Why contribute to a 403(b) and/or a 457(b)?

Participating in your plan can provide a number of benefits including:

• LOWER TAXES TODAY.  Your 403(b) and/or 457(b) contributions are made on a pre-tax basis which can greatly reduce your current income tax bill.  For example, if your federal marginal income tax rate is 25%, and if you contribute $100 a month to a 403(b) and/or a 457(b) plan, you've reduced your federal income taxes by roughly $25 (assuming a 25% tax bracket). In effect, your $100 contribution costs you only $75.  The tax savings grow with the size of your 403(b) and/or 457(b) contribution.
• TAX-DEFERRED GROWTH.  Your account in the 403(b) and/or 457(b) plan is tax-deferred.  This means your account can grow tax-free until time of withdrawal.
• ENHANCED RETIREMENT.  Other sources of retirement income, including state pension plans and, Social Security, often do not adequately replace a person's salary upon retirement.  A 403(b) and/or 457(b) plan can provide a healthy supplement to an employee's retirement income.

What companies can I participate with?

• Fidelity - (1-800-343-0860)
• VALIC - (1-800-448-2542)
• TIAA-CREF - (1-800-842-2776) 

How much can I contribute?

403(b) and 457(b) contributions for MCG employees in 2009 are generally limited to 95% of full gross salary not to exceed $16,500 for employees less than age of 50, or 95% of full gross salary not to exceed $22,000 for employees who are projected to attain age 50 or more by 12/31/2009.  (Age-based catch-up under section 414(v)).

How do I get more information?  

To obtain more information, including information about how to participate, and about the savings products made available under the plan, contact the Benefits & Data Management Staff at 706/721-3770.