Employee Matters

Decrease your taxes and save for retirement

A comfortable retirement requires some planning. The earlier you start, the better prepared you will be. Many employees say the Wisconsin Retirement System and Social Security benefits pay the bills in retirement, but it’s the money they set aside in supplemental retirement programs that pays for the quality of that retirement.

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 who work for educational, health care and nonprofit organizations to shelter income from taxes now and provide supplemental income after they retire.

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.

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 which you can invest payroll deductions. Each company has a number of stock, bond and interest-bearing funds from which you can choose. The companies have Web sites that describe the funds and offer all kinds of investment education.

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

When can I enroll?

You can enroll in the TSA and WDC programs anytime.

How much can I contribute?

The minimum biweekly contribution is $8 and the minimum monthly contribution is $20. For 2007 and 2008, the maximum “basic” contribution to each program is $15,500. There is also an “age-50-and-older” provision of $5,000. Additionally, employees with 15 years or more of UW service may be eligible for an additional TSA “catch-up” provision. Participants in the WDC have additional catch-up rights under the WDC program in the three years prior to retirement.

How do I get started in these programs?

Visit the TSA or the WDC sites.

Questions?

Visit the general OHR web site or e-mail a benefits specialist.