UTSaver Deferred Compensation Plan (DCP)

What is the UTSaver DCP?

Like the UTSaver TSA, the UTSaver DCP, or 457(b) Plan, is a supplemental retirement savings program that allows participants to tax-defer additional income for retirement, through pre-tax contributions. These contributions are in addition to the contributions made to the mandatory retirement program. The program does not include an employer contribution. Participants reduce their taxable income by making pre-tax contributions from their paycheck in order to invest with one or more of the currently authorized vendors.

As investments grow, the earnings are tax-deferred until the money is withdrawn, presumably at retirement when income rates are generally lower.

How much can I contribute?

• The amount changes each year. Click here to see the current rates: http://www.utsystem.edu/benefits/retirement/voluntaryretirement.htm
• If you are within the three years before the taxable year in which you attain normal retirement age, you may be able to contribute an additional amount. Eligibility for this special catch-up provision is dependent upon your unused elective deferrals for the years you were eligible to participate in a 457(b) plan and must be calculated by the Office of Employee Services.

Neither your UTSaver Tax-Sheltered Annuity nor your Optional Retirement Program contributions affect the total amount you are able to defer under the UTSaver DCP.

How do I get started?

• Review and select a provider(s) from the list of authorized providers . You may select more than one provider for your UTSaver TSA participation.
• Log onto UTRetirement Manager and select "DCP Enroll/Make Changes."
• Complete an account application(s) with the provider(s) you have selected.
• If you are utilizing the special catch-up provision, contact Sue Phanhtharath in the Office of Employee Services and request a calculation of your contribution limit.  When the limit is received, in addition to the above steps, complete the Special Catch-Up Provision Agreement and return it to the Office of Employee Services.

May I change my contribution amount?

• You may increase, decrease, or stop contributions as often as once per month.
• To change or discontinue your contribution, log onto UTRetirement Manager and select "DCP Enroll/Make Changes."

May I change vendors?

• You may change your contributions to a new provider at any time by logging onto UTRetirement Manager.
• To transfer existing money, please complete a Transfer Verification Form. This form must be signed by your local benefits office as well as the receiving provider.

What happens if I separate employment?

• You have the option to leave your funds in your existing UTSaver DCP account or roll your account into another type of qualified plan.
• Distributions are available with you leave employment at retirement or, upon your death, to your designation beneficiary. Distributions must begin on or before April 1st of the calendar year following the latter of the calendar year in which you reach age 70 1/2 or the calendar year in which you retire.
• Unlike the UTSaver TSA program, the 10% early withdrawal penalty does not apply to withdrawals from the UTSaver DCP prior to age 59 1/2. You can separate from service at any age and withdraw monies without penalty. However, income taxes will be due upon withdrawal.
• Contact Sue Phanhtharath at (512) 499-4660 to better understand your available options.

Questions?

If you have any questions, contact:

Sue Phanhtharath
Office of Employee Services
(512) 499-4660
sphanhtharath@utsystem.edu

or visit the website: http://www.utretirement.utsystem.edu/