Understanding the PSR 457 Plan for Retirement Savings

The PSR 457 Plan is a type of deferred compensation plan designed for public sector employees. It offers a unique way to save for retirement.

Contributions to the plan are made through payroll deductions, which can be a convenient and automatic way to save. The plan allows for pre-tax contributions, reducing taxable income.

The plan is designed to provide a supplement to other retirement savings, such as Social Security and a 401(k) or other employer-sponsored plan.

The PSR 457 Plan offers two main types of plans: the 403(b) Plan and the 457(b) Governmental Plan. Both plans have similar features and benefits.

The 403(b) Plan allows all exempt employees and nonexempt employees (except for student workers) to enroll at any time during employment. You can enroll at any point in your career with PSR.

The 457(b) Governmental Plan also allows all exempt employees and nonexempt employees (except for student workers) to enroll at any time during employment. This means you can start saving for retirement from day one of your job with PSR.

Here are the key features of both plans:

Deductions for the 457 Plan will begin the month after enrollment.

You can expect your 401(k) deductions to start as early as the first pay period after enrollment, which means you'll be on your way to building a secure financial future right away.

Questions about payroll deductions can be directed to the Office of Human Resources at 404-656-7560.

When you enroll, your 401(k) deductions will begin as early as the first pay period after enrollment.

The 457 Plan, on the other hand, will start deducting from your paycheck the month after you enroll.

Questions about payroll deductions can be directed to the Office of Human Resources at 404-656-7560.

You can allocate your retirement contributions to only one vendor within a single payroll period using the Workday system.

Employees participating in both retirement plans can change their contributions from one plan to the other as frequently as each pay period or paycheck.

New participants or new requests to change enrollments in the University retirement plan without a vendor selected will have TIAA listed as their default retirement plan.

These changes can be completed by employees through Workday.

You can elect either TIAA or Fidelity as your retirement plan vendor, and move your contribution election between vendors each pay period if you so choose.

Only one vendor may be elected per pay period.

You can set aside money by contributing pre-tax or after-tax monies from your pay.

Here are the key differences between pre-tax and after-tax contributions:

401(k) deductions will begin as early as the first pay period after enrollment.

Deductions for the 457 Plan will begin the month after enrollment.

If you have questions about payroll deductions, you can direct them to the Office of Human Resources at 404-656-7560.

Saving for retirement can be a daunting task, especially if you're just starting out. A PSR 457 plan can help you get started, with a minimum contribution rate of 1% of your pay, which is automatically deducted from your paycheck.

You can also make voluntary contributions to your account, up to the annual limit of $19,500 in 2022, and an additional $6,500 if you're 50 or older.

To make the most of your PSR 457 plan, it's essential to understand the investment options available to you, such as the money market fund and the diversified stock fund.

You can contribute to the 403(b) and 457(b) Plans in addition to your participation in the TRS Plan, ORP, or ERS to boost your retirement savings. These plans provide options for deferring pre-tax and after-tax income for retirement saving.

If you're an exempt employee or a nonexempt employee (except for student workers), you can enroll in the 403(b) Plan and/or 457(b) Plan at any time during employment.

All exempt employees and nonexempt employees (except for student workers) may enroll in the 403(b) Plan and/or 457(b) Plan at any time during employment.

You can contribute to one or both of these plans, giving you more flexibility to save for your future.

You have options when it comes to managing your 403(b) and/or 457(b) accounts. USG has partnered with three retirement plan providers: Corebridge Financial, Fidelity Investments, and TIAA.

Each of these providers offers a four-tiered investment menu, featuring a wide array of fund options. This should help you create a diversified retirement portfolio.

To learn more about your investment options, go to OneUsgConnect. Click Research Your Investments within Retirement@Work.

The PSR 457 Plan is a great way to start saving for your future, and here's what you need to know.

All new hires are automatically enrolled in the plan at 1% of their pay, unless they opt out or change their contribution amount.

You have the flexibility to decide how much to save, with a minimum contribution of $5 per week and a maximum of $22,500 for 2023.

Additional contributions are allowed for pre-retirement catch-ups, which are subject to certain stipulations, up to $27,000 for 2023.

You can increase, decrease, or stop your contributions at any time.

Your contributions are deducted from your pay and deposited in your 457 account on a pretax basis, reducing your taxable income for the year.

If you're a Uniformed Firefighter or Uniformed Police officer, you won't receive the employer contribution if you're enrolled in the General Fire Pension Fund (GFPF) or the Police Officer Annuity Benefit (POAB).

The City contributes $20 per month to your 457 account if you enroll and actively contribute at least $5 per week.