Mandatory Pension Contribution Rates
The mandatory contribution rate is 5% of base salary. The employer’s contribution on your behalf is 8% of base salary.
Voluntary (Additional) Contributions – Elective 403 (b)
Voluntary contributions are permitted under the ABP plan. Members may elect to contribute an additional amount (over the 5% mandatory contribution) on a tax deferred basis. While federal income tax will be deferred on the contributions, state income tax and social security taxes will not be deferred.
2018 Annual Contribution Limits
You may elect to defer 1% to 85% of your base salary on an annual basis.
Under Age 50
- Employees under the age of 50 may defer up to $18,500 to your 403(b) and/or $18,500 in a Prudential Deferred Compensation plan.
- If you contribute the maximum amount to both plans, this would be a total pre-tax contribution of $37,000.
Age 50 or Older
- Employees age 50 or older may defer up to $24,500 to your 403(b) and/or $24,500 in a Prudential Deferred Compensation 457 plan.
- The maximum pre-tax contribution to both plans is $49,000.
To learn more about the Alternate Benefit Program you may visit the state to New Jersey website here: State of New Jersey Alternate Benefit Program (ABP) Site.
If you have questions about retirement plans, please contact firstname.lastname@example.org, or email@example.com.