Employee Matters

What supplemental retirement programs are available to UW employees?

Two supplemental programs are available: the Tax Sheltered Annuity program and the Wisconsin Deferred Compensation program. Contributions are deducted from your paychecks on a pre-tax basis.

The Tax Sheltered Annuity (TSA) program is commonly referred to as a 403(b) plan. The program allows employees of educational, health care and nonprofit organizations to shelter income from taxes now and provide supplemental income after they retire. The program is administered by the UW System office.

The Wisconsin Deferred Compensation (WDC) program is often called a 457 plan. This program allows employees who work for state, county and municipal governments to shelter money for retirement much like the TSA program does. The program is administered by the Department of Employee Trust Funds through a third-party administrator.

UW employees may contribute to either or both supplemental retirement programs.

Who is eligible?

Any faculty, academic staff, classified, classified limited term, some graduate assistants, and student hourly employees making W-2 wage income are eligible to participate. Some employees with graduate assistant titles are excluded: research assistants, some employees-in-training, fellows and interns.

Where can I invest my contributions?

The TSA program currently has six participating investment companies with whom you can have payroll deductions invested. Each company has a number of stock, bond and interest-bearing funds from which you can choose. These companies have Web sites that describe these funds and offer all kinds of investment education.

The WDC has investment funds available from a variety of companies. Contact WDC directly for more information.

When can I enroll?

You can enroll in the programs at any time.

How much can I contribute?

The minimum biweekly contribution is $8 and the minimum monthly contribution is $20. For 2008, the maximum “basic” contribution to each program is $15,500. There is also an ‘age-50-and-older’ provision of $5,000. In 2009 these maximums will increase to $16,500 and $5,500. Details.

Employees with 15 years or more of service may be eligible for an additional TSA “catch-up” provision. Participants in the WDC have additional catch-up rights under the program in the three years prior to retirement.

How do I get started in these programs?

Visit the TSA site or the WDC site.

TSA or WDC representatives visit campus throughout the year. Schedule an individual appointment online.

Questions?

Visit http://www.bussvc.wisc.edu/ecbs/, or e-mail benefits@ohr.wisc.edu.