403(b) Base Retirement Program
The 403(b) Base Retirement Program (BRP) is available to regular benefits eligible 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:
- for the following employees, a university matching contribution* of 5% of your eligible union compensation - an immediate one for one match of your investment - for a total contribution of 10%:
- Spartan Skilled Trades Union members (effective 4/24/2022 to 10/22/2022)
- Local 324 International Union of Operating Engineers, AFL-CIO members (effective 4/24/2022 to 10/22/2022 at 7.4%)
- Union of Nontenure-track Faculty members (effective 9/1/2022 to 12/31/2022)
- 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.
*Note: For some employee groups or job categories there is a service requirement before they are eligible for the university matching contribution. Please see the 403(b) Base Retirement Program Eligibility Chart for more detail.