The University offers three kinds of Tax-Deferred Plans: 403(b), 401(k) and 457. The differences are outlined in the side-by-side Comparison Chart. The information contained herein is not intended to recommend that an employee participate in the Tax Sheltered Annuity (TSA) or Savings Plus Program (SPP), nor will it give employees investment or tax advice.

Tax-Sheltered Annuity (TSA) Program 403(b)
Savings Plus Program (SPP) 401(k) and 457
Scholarshare College Savings Trust
Other Savings Plans

• US Savings Bonds
• Arrowhead Credit Union

• Eligible employees may participate in an IRC 403(b) Tax-Sheltered Annuity Plan.
• With exception of certain student classifications, all employees are eligible to participate in this program, including rehired annuitants (regardless of age)
• The plan is administered by the CSU.
• All processing fees for the plan are paid by the CSU; there is not cost to the employee for participation.
• There is no employer matching contribution.
• The minimum monthly 403(b) contribution is $15 per month. Currently, some 403(b) vendors require a monthly contribution greater than $15, so this level of contribution may limit the employee's choice of vendors.
• The plan allows an employee to defer a maximum of $15,500 for 2008.
• The IRS now permits an employee to change his or her Salary Reduction Agreement (SRA) at any time during the year. Because the CSU has a monthly payroll cycle, employees may submit a new SRA each pay period if desired.



Enrollment information:

• Select an approved TSA Company
• Establish 403(b) account with TSA Company by completing the Certificate of Establishment Account Form
• After the TSA Company has signed the Certificate of Establishment of Account, complete the Salary Reduction Agreement Form and return both forms to Human Resources


Over Age 50 Catch-Up Provision: IRC Section 414(v), added under the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), created a catch-up provision available to individuals age 50 or older before the end of the plan year. It allows them to make additional pre-tax elective deferrals to a 403(b) plan or to a 401(k) plan and also an additional $5,000 to a 457 plan.over and above the general contribution limits and without regard to previous contributions. The maximum amount of this additional contribution is $5,000.

15-Year Rule Catch-Up Provision: IRC Section 402(g)(7) "Catch-Up" election permits mployees with 15 years of service to contribute an additional $3,000 during the year. If you wish to contribute up to this amount you must demonstrate your eligibility for the catch-up rule by completing a "15-Year Catch-Up Worksheet to Determine Eligibility for 403(b) Contributions over $15,500". This worksheet must be completed every year you plan to contribute over the limit.

The Savings Plus Program is a long-term savings program that gives members two ways to save for retirement. The State of California offers eligible employees two plans authorized by the Internal Revenue Code: A Deferred Compensation plan under IRC Section 457, and a Thrift Plan authorized by IRC 401(k). The Department of Personnel Administration (DPA) is responsible for administering the Savings Plus Program.

Plan Highlights:

• You will lower your federal and state income tax due to a reduction in your taxable income.
• There is a potential for rapid growth of your tax deferred investment earnings.
• A variety of investments options are available for you to choose from
.
• The plans offer convenient payroll deductions and program flexibility to manage your accounts.
• A maximum deduction of $15,500 can be tax-deferred.
• There is no employer matching contribution.



Enrollment information:

• Log onto DPA Savings Plus Program official website
• Follow instructions to enroll on-line.
• Enrollment and changes are handled between you and the DPA.

Vendor: TIAA - CREF Tuition Financing, Inc.
Telephone: 866-842-2905 x5405
Website: http://www.scholarshare.com/

The Scholarshare Program is based upon the Internal Revenue code that will allow you to place money in a trust for your family's college expenses.

U.S. Savings Bonds

• Employees are eligible to purchase U.S. Savings Bonds (Series EE) through payroll deduction.
• The principal and interest are paid when the bond is cashed.
• Bonds are sent to employees as they are purchased.
• Can be replaced if lost, stolen or destroyed.



Enrollment information:
• U.S. Treasury Website
• Savings Bond FAQ
• Fill out the Enrollment Form and return to the Payroll Office.




Arrowhead Credit Union (ACU)

The ACU offers CSU Employees Totally Free Checking Accounts, Regular Savings Accounts, Special Savings and many other services. The ACU enables you to save conveniently, borrow at low interest rates and repay loans through payroll deduction.

For more information, visit the Arrowhead Credit Union website.