403(b) Base Retirement Program FAQ
- What is a 403(b) Base Retirement Program (BRP)?
- Am I required to participate in the 403(b) BRP?
- Can I contribute to both the 403(b) Supplemental Retirement Program (SRP) and the 457(b) Deferred Compensation Plan, in addition to the 403(b) BRP?
- May I elect to defer a different percentage to the 403(b) BRP?
- What investment options are available?
- How do I enroll?
- I did not enroll in the 403(b) BRP when I was newly hired and I'm not required, may I still enroll?
- How often can I make a change to the 403(b) BRP?
- When is my 403(b) BRP account vested?
- What happens to my account if I die before I retire?
- When can I take a distribution from my 403(b) BRP account?
- Will MSU allow loans against the 403(b) BRP?
- What happens to my 403(b) BRP account if I leave MSU?
- May I rollover my 403(b) BRP account if I go to a different employer?
- When do I pay income taxes?
- What affect does enrolling in the 403(b) BRP have on my Social Security?
What is a 403(b) Base Retirement Program (BRP)?
This is a part of a non-qualified tax-deferred retirement plan. The BRP is a defined contribution program that requires you to contribute 5% of your base salary. The University will provide a matching contribution equal to 10% of your base salary (some employees have a waiting period for the University contribution). Assets are held in group or individual contracts directly with the investment vendor. For more information on eligibility see: Base Retirement Program Eligibility.
Am I required to participate in the 403(b) BRP?
Participation in the plan may be voluntary or required (mandatory), based on your job category, age and full-time equivalent (FTE) service months. Once you are required to participate you must continue to participate as long as you are employed in a required class by MSU. For more information on eligibility see: Base Retirement Program Eligibility.
Can I contribute to both the 403(b) Supplemental Retirement Program (SRP) and the 457(b) Deferred Compensation Plan, in addition to the 403(b) BRP?
Yes. The plans have separate enrollment. The 403(b) Supplemental Program and the 457(b) Deferred Compensation Plan are voluntary (optional), and you may participate in either one or both plans. The federal government sets yearly limits on the amount of tax-deferred contributions an individual can contribute towards retirement or deferred compensation plans.
May I elect to defer a different percentage to the 403(b) BRP?
No. This part of the 403(b) plan is a defined contribution program, and the employee may only contribute 5%.
What investment vendors are available?
Two investment vendors are presently available: Fidelity Investments and TIAA-CREF. You should contact the investment vendor of your choice regarding the funds that are offered for the 403(b) BRP.
How do I enroll?
Follow these steps to enroll:
- Access the EBS Login, then use the Employee Self Service (ESS) tab, to select your plan, investment vendor and contribution amount.
- MSU will automatically provide the necessary information to the investment vendor to open your account. The investment election will default to an age appropriate Target Date Retirement fund.
- You will need to access your account with the vendor to name your beneficiaries.
- If you prefer, you can open the account yourself, select your investment elections and name your beneficiary by choosing the appropriate investment vendor microsite to enroll.
- Step by Step tutorial to Enroll with New Investment Vendor.
I did not enroll in the 403(b) BRP when I was newly hired and I'm not required, may I still enroll?
Yes, if you have eligibility for the match. Enrollment will be effective the next available pay period after completing your online salary deferral.
How often can I make a change to the 403(b) BRP?
You may submit an online salary deferral change (through the EBS Login) as often as you like to change your investment vendor selection or cancel your contributions (if you are not required to participate).
When is my 403(b) BRP account vested?
The 403(b) BRP account balances are fully and immediately vested. This means there is no minimum age or service requirement in order for you to own both your contributions and the University contributions. Note: Vesting in the 403(b) Base Retirement Program is not the same as being vested as an official retiree of the University.
What happens to my account if I die before I retire?
You will need to designate a beneficiary(ies) with your investment vendor, and the full value of your account will be payable to your beneficiary(ies). You may change the beneficiary designation at any time with the investment vendor. It is important to remember to review your beneficiary designation whenever you have a change in your personal situation, e.g. marriage, divorce, or death.
When can I take a distribution from my 403(b) BRP account?
Distributions are allowed upon retirement, termination of employment, or resignation, regardless of your age or length of employment. You may also be able to take a distribution from your account under these circumstances: attainment of age 59 ½, disability, or death. These payments may be subject to restrictions imposed by your investment sponsor. For more information see Retirement Plan Information.
Will MSU allow loans against the 403(b) BRP?
Yes. MSU will allow loans from the plan. Please check the Loan Provisions page regarding availability, payment schedules, interest rates and criteria.
What happens to my 403(b) BRP account if I leave MSU?
Your account is fully and immediately vested. There is no requirement to withdraw your funds when you leave MSU. You will have several distribution options to choose from. You will need to contact your investment vendor for information and the proper forms.
May I rollover my 403(b) BRP account if I go to a different employer?
Yes, if your new employer accepts rollovers.
When do I pay income taxes?
The 403(b) BRP is funded through pre-tax contributions, so applicable federal and state taxes are not due until funds are withdrawn from the account.
What affect does enrolling in the 403(b) BRP have on my Social Security?
Enrollment in the 403(b) BRP does not reduce your current Social Security taxes or your future Social Security benefits. This is also true for the 403(b) Supplemental Retirement Program and the 457(b) Deferred Compensation Plan.
