The six minute video below provides an overview of the different Group Retirement Plan election options (SERS and ARP) that are available to newly eligible employees.
Enrollment in the retirement program is required, effective the first day of employment for all permanent full-time and part-time employees. Temporary employees must enroll in the retirement program once they have worked 750 hours in a calendar year. Eligible employees are able to choose from the State System's Alternative Retirement Plan (ARP) or the State Employees' Retirement System (SERS).
Employees have 30 days from the first day of eligibility to select enrollment in either the ARP or SERS. If you do not make an election, you will automatically be enrolled in the SERS plan. Your election or default election is irrevocable and cannot be changed.
There are a few exceptions related to campus police including patrol officer, police specialist, police supervisor, police chief, or assistant police chief. View the campus police retirement page for the retirement plan options available to campus police.
The ARP is a defined contribution plan. Your retirement income is determined by your account balance at the time of retirement, which is comprised of your employee contributions (5% of salary), the employer contributions (9.29% of salary), and any earnings based on the performance of your investments. You have the ability to convert your account balance at retirement to guaranteed monthly payments.
Under the SERS umbrella there are 3 different plan options. Two "hybrid" plans where a portion goes to a defined benefit plan that features guaranteed monthly payments and a portion goes to a defined contribution plan where the amount of money you earn depends on the performance of your investments. The third option is a straight defined contribution/investment plan.
The State System offers two additional options to save and invest extra money for retirement. Whether you are supplementing your group retirement plan or you are not eligible to enroll in the group retirement plan, the voluntary retirement plans are available to all employees upon their date of hire. Employees can choose to contribute up to the annual IRS limits in both plans. There are no employer contributions for these plans.
Your 457 Plan offers a simple, flexible way for you to save for retirement. With it's powerful pretax and Roth saving features, investment options and planning resources, you can work toward replacing your working income in retirement - for life. Review your 457 Plan highlights document to see how your 457 Plan can help you save, invest and prepare for retirement.
Employees are able to choose from TIAA and/or Fidelity as their TSA vendor and choose from the same core investment lineup as the ARP retirement plan, offered at the lowest possible fee structure. Access to a brokerage window is available for employees who desire investment choices outside of the core lineup.