This program is sponsored by the University of North Carolina System. There are two participating vendors in the program, Fidelity and TIAA-CREF.
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The UNC System Voluntary 403(b) Retirement Program is a supplemental retirement plan that allows employees to set aside payroll-deducted contributions on a tax-deferred or Roth after-tax basis.
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All permanent and temporary employees who are subject to FICA withholdings are eligible. (Students are not eligible.)
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Contribution Amounts
The annual contribution limit to a 403(b) plan is based on a percentage of adjusted salary or "includible compensation." This means that your gross salary must be reduced by the amount of annual employee pre-tax contributions made to the N.C. Teachers' and State Employees' Retirement System or the UNC Optional Retirement Program before a calculation of the annual contribution limit can be made.
During 2009, you can contribute up to the lesser of 100 percent of your includible compensation or $16,500. You may be eligible for a catch-up contribution of an additional $5,500 if you are 50 or older, or will turn 50 during the current calendar year. For employees age 50 or older the maximum contribution amount is $22,000.
Coordination with other Supplemental Plans
An aggregation of 403(b) and 401(k) plan contributions must be made if you participate in more than one plan during a calendar year. For example, if you contribute to the 401(k) plan in addition to the 403(b) plan, the combined amount of the contribution to both plans in 2009 cannot exceed the elective deferral plan limit of $16,500. The age 50 catch-up is also a combined amount with the 401(k) program.
Contributions to the 457(b) deferred compensation plan are not aggregated with 403(b) or 401(k) plan limits.
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Step 1: Complete a new Salary Reduction Agreement (SRA) and return the form to Benefits Administration, CB #1045.
Step 2: Enroll in the program
You can enroll in the program through TIAA-CREF and/or Fidelity by following the links below to each 403(b) provider's online enrollment Web site. While contributions will not begin until you have completed your Salary Reduction Agreement form, you do NOT have to wait to open your new account(s). Simply click on the links below to find out more information about your investment options and complete your enrollment.
Fidelity: Use Plan ID 08310 to get started
TIAA-CREF: Use online access code NCH123.
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Selecting an 403(b) Vendor
Items you should consider in selecting a vendor(s) are:
- Financial strength and stability of the 403(b) vendor
- Contract fees, charges, and operating expenses
- Explanations of annuity and/or mutual fund options
- Interest rate history, policies, and guarantees
- Descriptions and performance history of investment accounts, and
- Special features and services offered by the vendor
Allocating Contributions
When you enroll in the 403(b) program you must also decide what portion of your contributions will go into a fixed account and/or what portion will go into an investment account. You may change your allocation for future premiums at any time by contacting your 403(b) vendor.
Transferring Funds
You may transfer your funds between any of the approved 403(b) vendors during your employment with the University.
Vesting
You are immediately 100 percent vested in the value of your employee contributions.
Loans
You may be able to borrow against your account, depending on the vendor you select. Contact the vendor directly for information about loans
Death Benefits
In the event of your death, your total account value is available to your designated beneficiary. You designate your beneficiary when you complete your 403(b) enrollment application.
Distribution Options After Leaving the University
Generally, distributions from 403(b) accounts can be made when an employee reaches age 59 1/2, severs employment, becomes disabled or dies. In most cases, payments received from a 403(b) account are taxed as ordinary income and may be subject to an additional penalty. Under minimum required distribution rules, an employee must receive all or at least a minimum portion of interest accrued after 1986 by April 1 of the calendar year following the year in which the employee reaches age 70 1/2 or retires, whichever is later.
Retirement Benefits
Under the 403(b) Program, the amount of the benefit is based on the total accumulation in the account(s) including any credited interest or dividends, your age, the age of your annuity partner, if applicable, and the income option selected. There are no age or service requirements to meet in order for a participant to begin receiving a benefit.
Each 403(b) vendor makes available optional forms of payments and a variety of retirement payment options designed to allow you to tailor-make your retirement program to meet your financial needs. These may be fixed annuity payments or payments on a variable basis, or a combination of payment options. You may also elect to receive a lump sum distribution, as permitted by the 403(b) vendor(s).
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Benefits Services in the Office of Human Resources is responsible for reviewing and revising as needed the content of this page.
The information contained in this website is not a contract and is subject to change. It should be understood that explanations in this summary cannot alter, modify or otherwise change the controlling legal documents or general statutes in any way, nor can any right accrue by reason of any inclusion or omission of any statement in this presentation. The most current information will always be found at the benefit carrier's home page. The Office of Human Resources designs these pages to be as current as possible; however, the benefit information provided herein is always subject to change.
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