Tax Sheltered Investment Programs
and Deferred Compensation Plan

Introduction:

University employees are eligible to participate in a tax-sheltered investment program through the payroll deduction method as authorized under Section 403(b) and Section 457 of the Internal Revenue Code. These investment plans allow employees to contribute a part of their income on a tax-deferred basis to qualified retirement plans. When employees receive benefits from their tax sheltered investment, the payments will be reportable as income for tax purposes. Since the reportable income employees receive at retirement is likely to be less than their income while working, they usually gain a tax advantage.  Employees may participate in both a 403(b) program and the State of Missouri Deferred Compensation Plan (457 Plan).

Occasionally, the Office of Human Resources is contacted by employees asking for clarification of the authority for 403(b) representatives to contact them during work time. In as much as 403(b) investments are part of the University's employee benefits program, representatives of approved companies may contact employees during work hours, provided they comply with the following guidelines.

• Contact by telephone during work hours is permissible, however, the telephone call should only be for the purpose of obtaining an appointment with the employee; it should not involve a discussion or explanation of the investment program, benefits, or options, or convey the impression of a "sales pitch."
• Contact in person on University property is permissible, only if it occurs during the employee's free time, as an example, during the lunch hour or during a recognized and scheduled break.

Employees who believe that a 403(b) representative has exceeded his/her authority when contacting them during work hours should contact the Office of Human Resources so that appropriate measures can be taken by the University.

Section 403(b) General Information and Policies:

• Employees may only contribute to one 403(b) plan at a time.
• The annual minimum deferral is $200
• Contributions to a 403(b) plan are limited by Section 402(g) of the Internal Revenue Service code.  The annual deferral limit is the lesser of $16,500 (2009) or 100% of gross annual salary.

Alternative Limit

The 15-year Rule:

Employees who have 15 years of service may exceed the 402(g) limit by no more than $3,000 per year, up to a $15,000 lifetime cap.

Catch-up Contributions:

An individual age 50 or older will be permitted to make an annual contribution in addition to those   permitted by section 402(g).  The limit will be $1,000 per year to $5,000 in 2008 and indexed in $500 increments per year after 2008.

These two alternative limits may be used at the same time.

Employees may participate in both a 403(b) program and the 457 State of Missouri Deferred Compensation Plan. 

To START a 403(b):  

Contact a company representative from the list of approved 403(b) companies shown below.  Enrollment forms for TIAA are in the Payroll Office.

Obtain a Missouri State University Agreement to elect Deferral Reduction Under IRC 403(b) form at the Office of Human Resources, the Payroll Office, or on the web site (see the instructions below).

Return a completed Missouri State University Agreement to Elect Deferral Reduction Under IRC 403(b) form to the Payroll Office on or before the last working day of the month prior to the month the contribution is to begin.  As an example:  if contributions are to begin with April's paycheck, the form must be submitted to the Payroll Office by the last work day in March.  This is required by the university.

A copy of the Missouri State University Agreement to Elect Deferral Reduction Under IRC 403(b) will be sent to the employee in the month the salary reduction begins.  

To STOP a 403(b):  

Send a memo to Payroll on or before the last working day of the month stating that the 403(b) reduction should be stopped.  The memo must include:  employee's name, social security number, company name, amount and effective month to stop the reduction.  As an example:  in order to stop a 403(b) reduction in May, the memo must be received in the Payroll Office no later than the last work day in April.  

To CHANGE the amount of a 403(b) contribution:  

Complete a new Missouri State University Agreement to Elect Deferral Reduction Under IRC 403(b) form with the new amount.  This agreement form will replace the old agreement form. Click on this link Tax Deferred Salary Reduction Plan to get the form.  (As stated in the section above titled:  To start a 403(b), you will need three copies of this form filled out.)  Submit all three copies to the Payroll Office on or before the last working day of the month prior to the month the new amount is to begin.  

To CHANGE the company:  

Send a memo to Payroll on or before the last working day of the month stating that the 403(b) reduction should be discontinued with the current company.  The memo must include:  employee's name, social security number, company name, amount and effective month to stop the reduction.   As an example:  in order to stop a 403(b) reduction in May, the memo must be received in the Payroll Office no later than the last work day in April.

Complete a new Missouri State University Agreement to Elect Deferral Reduction Under IRC 403(b) for the new company.  This agreement form will replace the old agreement form.  Submit it to the Payroll Office on or before the last work day of the month prior to the month the new agreement is to begin.  

Instructions to obtain a Missouri State University Agreement to Elect Deferral Reduction Under IRC 403(b) Form on the web site:

Click the link below to obtain the Agreement to Elect Deferral Reduction Under IRC 403b Form.   Complete the form and submit three (3) copies to the Payroll Office on or before the last working day of the month prior to the month the contribution is to begin.

Deferral Reduction IRC 403b Form

To access this form, you will need to obtain the current version of the Adobe Acrobat Reader software, call Computer Services Help Desk at extension 5891 for assistance. You need Adobe Acrobat Reader to view and print this document.      

COMPANIES APPROVED TO WRITE
SECTION 403(b) PROGRAMS

  For quick access to a specific company's web site, simply click on the company's name if it is underlined.

Company Name	Phone Number
VALIC	Phone: 913-402-5000 or 1-800-892-5558 Extension 88205 (Butch Purvis) Fax: 913-402-5027
Ameriprise	417-877-0252  or 1-866-505-5623 (Paula Dougherty)
ING Life Insurance and Annuity Company	Enroll by Phone: 1-888-311-9489 Investor Services (Questions): 1-888-681-3153
Lincoln Financial	417-881-7595  or  888-881-7595 (Rodney K. Pennington) Customer Service: 1-800-254-6265 or 1-800-348-1212
Met Life	417-848-8993 (Thelma Ruff)
Teachers Insurance and Annuity Association (TIAA/CREF)	1-800-842-2776
Thrivent	1-800-847-4836 www.thrivent.com

 

Section 457 Deferred Compensation

Information on the Section 457 Plan can be found at: https://mo.ingplans.com/csportal/welcome.do

Section 457 Deferred Compensation General Information and Policies:     

• The Section 457 State of Missouri deferred compensation plan is administered by ING.
• Contributions to a 457 plan are limited by the Internal Revenue Service (IRS) to the lesser of $16,500 (2009) or 100% of gross annual salary.
• The rules for exceeding the deferral on the 457 plan differ from the 403(b) plan.  ING will be responsible for calculating and monitoring contributions that exceed the General Limit.
• An employee who qualifies for a "Catch up" provision should direct his/her questions to the ING office in Jefferson City, Missouri, at   (800) 392-0925.
• Employees may participate in a 457 and a 403(b) plan.  

To START a 457:  

Employees must contact the ING office in Jefferson City, Missouri at (800) 392-0925 (Opt 1) or (573) 761-5445 (ext. 2107) to speak with our service area representative, Ms. Deborah Taylor.

The ING Representative will assist the employee in completing the appropriate forms and will forward the forms to Jefferson City for processing.

ING will forward documentation to the University's Payroll Office indicating the amount and the date to start the salary deferral. 

Without the confirming documentation, the University will not initiate any salary deferrals.  

To CHANGE or STOP a 457:  

Contact the ING Representative who will assist the employee in completing the appropriate forms and will forward the forms to Jefferson City for processing.

ING will forward documentation to the University's Payroll Office indicating the amount and the date to start the new salary deferment.

Without the confirming documentation, the University will not change or stop any salary deferments.

Revised 04/09