457(b) Deferred Compensation Plan Policy & Procedure

Support Staff Policies & Procedures

457(b) Deferred Compensation Plan Policy & Procedure

(Revised 09/16)

Policy Statement

The University provides a voluntary 457(b) Deferred Compensation Plan for eligible employees.

Eligibility: Regular full-time (90-100%) and part-time (50-89.9%) faculty, academic staff, executive management, and University support staff in a benefits eligible position. Benefits eligible positions for faculty, academic staff and executive management are defined as 50% or greater employment for a continuous period of 9 months or longer. Benefits eligible positions for support staff are defined as regular full-time (90-100%) and part-time (50-89.9%) employment without an end date of less than 9 months.

Effective date of benefit: Eligible employees may elect participation upon employment or any time during employment.

Summary of benefits and features:

The benefit provides income during retirement and benefit payments to the beneficiary in the event of death prior to retirement.
Contributions are on a tax-deferred basis contributed to an account held at a retirement vendor, and are 100% vested.
Contributions cease with the last day of paid employment, a change to an ineligible employment status, or designation by the employee to stop future contributions.
Withdrawals are allowed after retirement, or termination, regardless of age or length of service.
In-service withdrawals are subject to IRS guidelines and are permitted due to "unforeseen emergency"
Loan options may be available. Contact the retirement vendor for specific information on loans.
A more detailed summary of benefits and features is available in the online Enrollment Guide.
The MSU 457(b) Deferred Compensation Plan Document provides more detail and governs the administration of the Plan.

Procedure

Application for enrollment:

Employees may enroll at any time after becoming eligible. Enroll online at the EBS Portal. Review the Enrollment Instructions for more detail.
The enrollment process will be effective either the current pay period or the next pay period, depending on the payroll processing date.
Retroactive enrollment is not permitted.

Changes in coverage or personal information:

Employees may make changes by accessing the EBS Portal. Review the Enrollment and Changes Instructions for more detail.
Employees may make changes to their retirement account by contacting their Investment Vendor.

Refer questions to: MSU Human Resources (telephone 517-353-4434 or e-mail solutionscenter@hr.msu.edu)

Revision History -

9/9/16 - updated eligibility detail, deleted outdated summary and other information, and added links to the online Enrollment Guide and Plan Document.

5/27/16 - updated title

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