403(b) Base Retirement Program
The 403(b) Base Retirement Program (BRP) is available to regular MSU employees working at least half-time (50% or more) for at least nine continuous months. It is a defined contribution plan operated under section 403(b) of the Internal Revenue Code.
This plan consists of an employee contribution of 5% of your eligible compensation and, effective July 1, 2020:
- for executive management, non-unionized* faculty, and non-unionized* academic staff (other than research associates and senior research associates), a university matching contribution of 5% of your eligible compensation - an immediate one for one match of your investment - for a total contribution of 10%; and
- for all other employees, a university matching contribution of 10% of your eligible compensation - an immediate two for one match of your investment - for a total contribution of 15%.
Your 5% contribution is made on a tax-deferred basis. Since contributions are taken out before taxes, you pay less tax on your current income. You do not pay taxes on either contributions or earnings until you begin receiving your retirement income from the plan. Since contributions are fully and immediately vested, you have full ownership of your account from day one.
* For these purposes, "non-unionized" means the terms of employment of the faculty member or academic staff member are not covered by a collective bargaining agreement. For those faculty and academic staff members with hybrid UNTF / non-UNTF appointments, the 5% matching contribution applies to the non-UNTF portion of the their appointment, and the 10% matching contribution applies to the UNTF portion of their appointment.