Saving for Retirement
As a UW System employee, you have several options to help you prepare for retirement. The Wisconsin Retirement System (with limited exceptions) covers Faculty, Academic Staff, Limited and Classified Permanent and Project employees. Most employees (except those who receive stipends) may also participate in the UW Tax-Sheltered Annuity (TSA) 403(b) and Wisconsin Deferred Compensation (WDC) 457 programs.
The Wisconsin Retirement System (WRS) – 2014 Contribution Rates
The WRS employee contribution rate for 2014 will increase from 6.65% to 7% for all employees except those covered by the Executive WRS category whose rate will increase from 7% to 7.75%. This change will occur on your first check payable in 2014.
Supplemental Retirement Savings Plans: Tax-Sheltered Annuity 403(b) and Wisconsin Deferred Compensation 457 Programs
Both the Tax-Sheltered Annuity (TSA) and Wisconsin Deferred Compensation (WDC) program allow you to save money for retirement. Both programs are voluntary and there is no employer contribution. You may contribute to both plans and you may contribute on both a pre-tax and post-tax (Roth) basis.
You can begin participating in either plan at any time. You can also change your contribution and investments at any time.
| Tax-Sheltered Annuity 403(b) | Wisconsin Deferred Compensation 457 | |
|---|---|---|
| Learn More | See the TSA Website to learn about:
How to Enroll TSA Investments & Returns |
See the WDC Website to learn about: How to Enroll Investment Options |
| Minimal Financial Commitment | Start contributing for as little as $8 (bi-weekly) or $20 (monthly) per pay period. Low annual fee of $12.00 |
No minimum monthly contribution Annual fee of $0-$66 depending on the value of your account |
| 2013 Contribution Maximums* | Under age 50 - up to $17,500 annually under each plan Age 50 or over - up to $23,000 annually under each plan |
Under age 50 - up to $17,500 annually under each plan Age 50 or over - up to $23,000 annually under each plan |
* If you have more than 15 years of service with the UW or are within a few years of retirement, you may be able to contribute more than the maximums listed above. Contact your benefits office for details. The 2014 maximums will be released later this year.
TSA companies and WDC representatives will be at most benefit fairs.