Retirement Plan Options

In addition to the mandatory retirement plans, eligible employees may also participate in the voluntary retirement plans offered by Auburn University.

Auburn's plan options include:

  • The 403(b) Tax Deferred Annuity Plan (Roth option available) 

  • The 457(b) Deferred Compensation Plan (Roth option available)

Tax Deferred Annuity Plan

Employees have a way to defer federal and state income tax that is unique to colleges, universities, and other nonprofit organizations. Under Section 403(b) of the Internal Revenue Code, tax deferred annuity plans offer individuals tax and retirement benefit advantages.

These plans reduce the employee's gross wages before federal and state taxes are computed. Theoretically, when these funds are withdrawn later in life, the employee is in a lower income tax bracket.  

403(b) Plan Summary Explanation.

Employees are divided into the following two classes:

  • Class A - Class A includes employees whose most recent and applicable appointment period is continuous and are employed and designated in a full-time employment class. Class A employees are eligible to make elective deferrals out of their own compensation and receive an employer matching contribution.

  • Class B - Class B includes employees designated as part-time or temporary. Class B employees are eligible to make elective deferrals out of their own compensation; however, they are not entitled to receive employer matching contributions.

Excluded employees are not eligible to contribute to the plan. An excluded employee is a former employee, an independent contractor or a student-employee who is enrolled and regularly attending classes at Auburn University.

The Roth 403(b) is an additional way to save in your plan where you contribute after-tax dollars from your paycheck. Unlike a traditional pre-tax 403(b), when you contribute to a Roth 403(b), at retirement you can then withdraw tax-free dollars from your account

Federal law limits the amount you may elect to defer under this plan during the 2024 calendar year to $23,000. If you are over age 50 or turn age 50 during the 2024 calendar year, you may defer an additional amount up to $7,500, for a total of $30,500.

These dollar limits may change each year with cost-of-living adjustments issued by the IRS in October. If you contribute to both pre-tax and after-tax Roth 403(b) accounts during the same year, all contributions to both accounts are combined to apply to the annual maximum.

Please note that the amount you defer must be made in a whole percentage and sent to one vendor at a time. You can increase, decrease or stop your deferral contribution at any time. After completing the appropriate forms, requests shall become effective on the first day of the month following receipt of such change, or as soon thereafter as administratively practicable.

Participants who wish to elect to defer 50 percent or more of his or her includible compensation must first contact Auburn University Human Resources to confirm adequate remaining includible compensation to pay for all other benefits for each pay period.

Employer matching contributions will be made for eligible employees in amounts equal to 100%; of elective deferral contributions up to 5% of your plan compensation.

The matching contribution cannot exceed $1,650 for any Plan Year (calendar year). If you contribute to both a pre-tax and after-tax Roth account during the same year, the Auburn University match is combined to reach the $1,650 annual maximum match.

Employee deferrals are always 100% vested. The employer matching contribution is subject to the following vesting schedule:

  • Fewer than five years: 0%

  • Five+ years: 100%

Company

Names

Phone and website

Corebridge Financial (formerly VALIC/AIG)

Cindy HaynesBrian Ledbetter, Jessica Mask or Sheila Bendall

Cindy Haynes - (334) 734-0823

Brian Ledetter - (334) 201-4861 (Brian)

Jessica Mask - (334) 740-7835 or (334) 703-5657

Sheila Bendall - (205) 234-1758 

Corebridge website

Fidelity Investment

John Schultz or Brigham Barker

John Schultz - (678) 928-1442 

Brigham Barker - (205) 813-1326

Fidelity website

Lincoln Financial Group

Carey Beaven or Marcella Martinez

Carey Bevan - (404) 625-8402

Marcella Martinez - (815) 592-2344

Lincoln website

TIAA

Jared Gilbert or Kimya Kamran

Service and Scheduling Group – (800) 732-8353

TIAA website

Deferred Compensation Plan

Deferred compensation plans are another investment vehicle to defer current income from federal and state income taxation. 

457(b) Plan Summary Explanation

If you are a full-time, part-time, or temporary employee, you are eligible to make elective deferrals under the plan out of your own compensation.

Excluded employees are not eligible to contribute to the plan. Under the plan, an excluded employee is a former employee, an independent contractor or a student-employee who is enrolled and regularly attending classes at Auburn University.

Auburn offers either a pre-tax account type or a post-tax Roth account type.

In addition to contributions made to the 403(b) Plan, Federal law limits the amount you may elect to defer under this plan during the 2024 calendar year to $23,000. If you are over age 50 or turn age 50 during the 2024 calendar year, you may defer an additional amount up to $7,500, for a total of $30,500.

These dollar limits may change each year with cost-of-living adjustments issued by the IRS in October. If you contribute to both pre-tax and after-tax Roth 457(b) accounts during the same year, all contributions to both accounts are combined to apply to the annual maximum.

Please note that the amount you defer must be made in a whole percentage and sent to one vendor at a time. You can increase, decrease or stop your deferral contribution at any time. When you submit the appropriate completed forms, Auburn will implement your contribution request as soon thereafter as administratively practicable.

Participants who wish to elect to defer 50 percent or more of his or her includible compensation must first contact Auburn University Human Resources to confirm adequate remaining includible compensation to pay for all other benefits for each pay period.

You will not receive an employer contribution under the 457(b) Plan.

Employee deferrals are always 100% vested. No employer contribution is made to the 457(b) plan.

Retirement Plan Vendor

Advisers

Phone and website

Corebridge Financial (formerly VALIC/AIG)

Cindy HaynesBrian Ledbetter, Jessica Mask or Sheila Bendall

Cindy Haynes - (334) 734-0823

Brian Ledetter - (334) 201-4861 (Brian)

Jessica Mask - (334) 740-7835 or (334) 703-5657

Sheila Bendall - (205) 234-1758 

Corebridge website

Fidelity Investment

John Schultz or Brigham Barker

John Schultz - (678) 928-1442 

Brigham Barker - (205) 813-1326

Fidelity website

TIAA

Jared Gilbert or Monica Gilmer

Service and Scheduling Group – (800) 732-8353

TIAA website

If you are an employee of Auburn University and eligible, you may also participate in the 457(b) plan offered by the Retirement System of Alabama, the RSA-1. (Pre-tax deferral only)

Additional information may be obtained by contacting RSA at (877) 517-0020 or www.rsa-al.gov.

How to Enroll

If you are an eligible employee, you may enroll in the voluntary retirement plans at any time during the year. Enrolling requires completion of a Salary Deferral Agreement as well as new account forms with the provider of your choice.

An online calculator is available via Self Service Banner to help you determine your contribution percentages and complete the 403(b) and 457(b) Salary Deferral Agreement forms.

The forms are also available at University Human Resources (UHR) located at 1550 E. Glenn Ave. Please use the Secure Document website to upload the forms, or you can return them to UHR.

For employees at AUM, forms can be obtained at the AUM Human Resources Office located at 705 Library Tower.

Financial Adviser Schedule

Financial advisers are available to help Auburn employees review and better understand the university's voluntary retirement plan options.   

Employees may schedule an appointment with one or more of the listed advisers to enroll and/or discuss their account. Advisers may conduct meetings in person, via video conferencing, or over the phone. Upcoming dates for February to May 2024 are listed below.

Retirement Plan Vendor

Advisers

Dates

Corebridge (formerly VALIC/AIG)

Cindy Haynes - (334) 734-0823

Brian Ledbetter - (334) 201-4861

Jessica Mask - (334) 740-7835 or (334) 703-5657

Sheila Bendall (205) 234-1758 

March 13, 21, and 28

April 3, 10, 17, and 22

May 1

Fidelity

John Schultz (678) 928-1442

Brigham Barker (205) 813-1326

John Schultz – March 12, April 4, and May 2

Brigham Barker – March 28, April 18, and May 20

Virtual Days – April 9 and May 7

Lincoln

Carey Beaven (404) 625-8402

Marcella Martinez (815) 592-2344

March 28

May 30

TIAA

Jared Gilbert or Monica Gilmer

March 19

April 30

May 28

Additional Resources

Last updated: 03/07/2024