Deferred Compensation Plans (403(b) & CalPERS 457)

Overview

University Enterprises, Inc. offers two supplemental retirement savings plans to help employees build additional income for retirement:

• 403(b) Tax-Sheltered Annuity Plan
• CalPERS 457 Deferred Compensation Plan

These plans allow employees to voluntarily contribute a portion of their earnings through payroll deductions.

Both plans are separate from CalPERS pension benefits and are designed to supplement retirement income.

Key Differences Between 403(b) and 457 Plans

Feature	403(b) Plan	CalPERS 457 Plan
Plan Type	Tax-sheltered retirement plan	Deferred compensation plan
Who Offers It	Nonprofits, schools, universities	Public sector employers
Early Withdrawal Penalty	May apply before age 59½	No early withdrawal penalty after separation
Contribution Limits	IRS annual limit	Separate IRS annual limit

 

Employees may contribute to both plans at the same time, maximizing retirement savings potential.

 

How the Plans Work

• Contributions are deducted directly from your paycheck
• You choose how much to contribute (percentage or flat amount)
• Funds are invested in selected investment options
• Contributions may be:
  • Pre-tax (reduces taxable income now)
  • Roth (after-tax) (tax-free withdrawals later, if eligible)

Both plans allow long-term, tax-advantaged growth.

Eligibility

• Available to all UEI employees
• No minimum contribution required to enroll

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Contribution Limits

• IRS sets annual limits for both plans
• Limits apply separately, meaning you can contribute to both plans in the same year

Contact HR for current contribution limits.

 

Making Changes

You may update your contributions at any time:

• Increase or decrease contribution amount
• Stop contributions
• Change investment allocations

Changes are subject to payroll processing deadlines.

Withdrawals & Access to Funds

403(b)

• Typically available at retirement (age 59½ or later)
• Early withdrawals may be subject to penalties

457 Plan

• Funds can be accessed after separation from employment without early withdrawal penalties (taxes still apply)

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Important Considerations

• These plans are employee-funded (no employer contributions)
• Investment returns are not guaranteed

 

Need Help?

Submit a ticket through the HR Helpdesk:
Category: Benefits → Retirement / Deferred Compensation