Beyond TSERS and ORP with UNC 403 and UNC 457
Did you know that the UNC System provides a unique set of supplemental retirement plans for faculty and staff?
We offer a UNC 403 and a UNC 457 through Fidelity and TIAA. These plans work just like a corporate 401k — but without the employer match. These supplemental plans allow you to use payroll deduction to put aside a large amount of money on a pre-tax or after-tax (Roth) basis.
The UNC 403 and a UNC 457 plans are supplements to TSERS (Teachers’ and State Employees’ Retirement System) and ORP (Optional Retirement Program), the two mandatory retirement plan options offered to state employees. Enrolling in these plans is an easy process through ConnectCarolina, and you can start, stop or change these plans and deductions any time.
The following plans offer a tremendous opportunity to save more for your future:
- Staff and faculty under the age of 50 can put up to $22,500 into a 457 AND a 403b. This means that if you have the financial ability, you can put up to $45,000 into these plans on a pre-tax or after-tax basis through payroll deduction.
- Staff and faculty age 50 and older can put up to $30,000 into each account (up to $60,000) on a pre-tax or after-tax basis through payroll deduction.
Pre-tax or after-tax (Roth) basis?
If you want to reduce taxable income now, you may want to choose pre-tax deductions. The pre-tax deductions grow, and taxes are paid when taken out at retirement.
If you want to have your after-tax deductions grow tax-free, then the after-tax (Roth) plan is the way to go. After-tax deductions go into these plans after taxes have been paid. These investments then grow tax-free and are not taxable when taken out at retirement.
The vendors for these UNC System plans are Fidelity and TIAA, which have some of the lowest management fees built into the rates of returns in the industry. Investments are through mutual funds, and you have the option to select your funds through a multitude of options. The default investment is a life-cycle fund based on your age.
How to enroll
Enrolling in these plans is an easy process through ConnectCarolina. You can start, stop and change these plans and deductions whenever you want (subject to payroll processing timelines).
- Log in to ConnectCarolina Self Service.
- Click the My Benefits tile.
- Click Benefits Enrollment on left.
- Choose Supplemental Retirement Plans.
- Read over the first page then scroll to the bottom to continue.