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 – 403(b) and 457 Plans
- ABP Plan members may elect to make contributions to their retirement savings account on a voluntary basis. Federal income tax is deferred on these contributions, but state income tax and social security tax is not deferred.
2020 Annual Contribution Limits under Voluntary Plans
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- 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 $19,500 to your 403(b) and/or $19,500 in a Prudential Deferred Compensation plan.
- If you contribute the maximum amount to both plans, this would be a total pre-tax contribution of $39,000.
- Age 50 or Older
- Employees age 50 or older may defer up to $26,000 to your 403(b) and/or $26,000 in a Prudential Deferred Compensation 457 plan.
- The maximum pre-tax contribution to both plans is $52,000.
2021 Annual Contribution Limits under Voluntary Plans
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- 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 $19,500 to your 403(b) and/or $19,500 in a Prudential Deferred Compensation plan.
- If you contribute the maximum amount to both plans, this would be a total pre-tax contribution of $39,000.
- Age 50 or Older
- Employees age 50 or older may defer up to $26,000 to your 403(b) and/or $26,000 in a Prudential Deferred Compensation 457 plan.
- The maximum pre-tax contribution to both plans is $52,000.
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 lyonsc@tcnj.edu.