The UTSaver Deferred Compensation Plan (DCP)Program is a 457(b) voluntary retirement program that allows you to save additional income for retirement through Traditional (pre-tax) contributions that will reduce your taxable income.
All university employees are eligible to participate in the UTSaver DCP Program.
Enrollment and Making Changes
- Review your estimated contribution limits online (EID is required)
- Review and select a provider(s) from the list of approved providers.
- Open an account with your approved provider(s). Vendor account opening can be completed online or through paper enrollment documents per vendor guidelines.
- Log onto UT Retirement Manager and click on “I’m a New User” to register. You can then set your UTSaver DCP retirement payroll contribution amounts. Contributions can be increased, decreased, or stopped as often as once per month. To discontinue your contributions, log onto UT Retirement Manager and select "Stop Contributions.”
- To transfer existing money, please complete a Transfer Verification Form. This form must be signed by your HR benefits office as well as the receiving provider before the transfer can be processed.
Contributing to the UTSaver DCP Program can significantly reduce your current taxes and help you save for retirement. All contributions are employee funded, conveniently taken by payroll deduction and may be invested in fixed or variable annuities or mutual funds. You can contribute as little as $15 per pay period or as much as 100% of your eligible compensation. Here are the IRS limits for DCP 457(b) participation:
|Year||General Contribution Limit for Traditional and Roth Combined||Age 50+ Catch-up||Three Years Prior to Retirement Catch-Up|
- General Contribution Limit: IRS tax year limit that includes DCP contributions.
- Age 50+ Catch Up: If you are age 50 or older, you can contribute an additional $6,000 per year in addition to the general contribution limit. You must be 50 years old or older during the calendar year of your participation.
- Three Years Prior to Retirement Catch-Up: You must be within three years of the taxable year in which you attain normal retirement age in order to contribute up to an additional $18,000 per year. Eligibility for this special catch-up provision is dependent upon your unused elective deferrals for the prior years you were eligible to participate in a 457(b) plan. Contact your Benefits Specialist for this calculation. This catch-up may not be used during the calendar year in which you retire and may not be used simultaneously with the Age 50+ Catch-Up.
UTSaver DCP contributions do not affect the total amount you are able to defer under the UTSaver Tax Sheltered Annuity (TSA) 403(b).
Deferring Unused Annual Leave Pay
Upon separation or retirement you can defer all, or a portion, of your unused annual-leave payment to your DCP accounts not to exceed your maximum contribution limit. You must submit the DCP Purchase Agreement form to your Benefits Specialist no later than your last day of employment to take advantage of this opportunity.
Employment Separation and UTSaver Participation
- You have the option to leave your funds in the existing 457(b) account or roll your account into a qualified plan, such as another 457(b) plan, a 403(b) plan, a 401(a) plan, or an IRA.
- Distributions are available for participants who separate from state employment (or due to financial hardship or death), but a 10% tax penalty applies to distributions made before age 59 1/2. Income tax must also be paid on the distribution amount.