HRM NEWS

7-29-11 - Supplemental Retirement Benefit - Tax Deferred Annuity the "403(b) Plan"

To: All Mississippi State University Employees

From: Human Resources Management

Date: July 29, 2011

Mississippi State University’s Human Resources Management Department strives to inform employees about options currently available in retirement planning. This letter is to provide notification of one of your supplemental retirement options, the Mississippi State University 403(b) Plan (the “403(b) Plan”), which may be opened at any time with pre-tax salary deductions. This is a supplemental retirement option designed to assist employees in accumulating an adequate retirement savings. Participation in the 403(b) Plan is strictly voluntary and is not required.

Contributions are made by the employee only (there are no additional employer contributions), via pre-tax salary deferrals. Your contributions and investment earnings are not taxable until distributed from the 403(b) Plan. There are limits to the amount of contributions employees can make each year, and other restrictions apply. When making your deferral election, you should be aware that in exchange for the favorable tax treatment afforded to 403(b) plans, both tax law and the plan limit access to your retirement savings. In general, distributions from the plan are only available at age 59-1/2, severance from employment, death or in the event of a qualifying financial hardship (as strictly defined by the plan). The plan does not permit participants to take loans from their accounts. Please be advised that the University does not endorse a particular investment product, fund, or vendor, and you should review all vendor publications carefully to ensure that your investment choices are suitable.

All employees are eligible to enroll in a new plan or make changes to an existing 403(b) Plan at any time. You may review information about the financial institutions that are authorized to offer investment products under our 403(b) Plan (“authorized vendors”) through the vendor Web site links provided on the Human Resources Management Web site, www.hrm.msstate.edu. You may enroll in your selected vendor’s investment option using the vendor’s online enrollment process. To start your contributions or change your contribution rate you are also required to submit the salary reduction agreement posted on the HRM Web site. If you don’t have online access, or if you have further questions, please contact the Benefits Office in Human Resources Management at (662) 325-3713 for printed information or enrollment forms.

Thank you for your time and consideration. We look forward to serving you again in the future.

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