Retirement Investors' Club (RIC)

Employer Match

Human Resources

while you are employed...

pretax deductions are taken from your paycheck & deposited into your selection of investments in your 457 employee contribution account

pretax contributions from your employer are deposited into your selection of investments in your 401(a) employer match account

once you terminate from State employment, you may leave your money in RIC, take flexible payments, a lifetime benefit, or roll over

no age limitation for withdrawals

withdrawals prior to age 59 1/2 may be subject to an IRS 10% penalty

The state offers a monthly match benefit to participants' 457 plan contributions. The state's matching contributions are deposited into what is called a 401(a) plan and are invested according to your selection of investments with one of the active providers. This match does not reduce your maximum contribution limit in your 457 account.

The state pays the participant's 401(a) account $1.00 for every $2.00 a participant deducts from payroll and contributes to their 457 account. The maximum state match amount is $75/month. In order to receive the full $75 match each month, the participant must contribute $150 to the 457. If a participant contributes less than $150/month to the 457, they will receive a 50% match contribution on the amount they contribute.

Since the match was negotiated as a monthly match benefit, an employee must contribute to the 457 every month in order to receive each month's match contribution. If a participant stops contributing, they are not able to receive missed match contributions.

You may choose to invest your 457 & 401(a) accounts in the same investment options or choose different investments for each account.

The match was negotiated as a monthly benefit. So remember that if you do not make your own contribution (through payroll deduction), you will not receive the match that month. There is no provision to "make up" for missed match contributions unless you are on qualifying medical leave.

To change your payroll deduction amount, please complete the RIC Account Form.

If you are contributing to an inactive provider 457 account, you may want to consider the benefits and features of investing your 457 contributions with the same active provider that invests your 401(a) match contributions. Don't hesitate to call if you are interested in transferring your 457 assets to an active provider.