What it is: The 403(b) plan is a voluntary savings and investment plan designed to provide supplemental retirement benefits. Fidelity Retirement Services maintains administrative records for the plan.

How it works: Contributions to the plan are made on a pretax basis; income taxes are calculated on remaining pay, thus reducing your taxable income. Tools to help estimate tax savings are on the Fidelity Retirement Services Web site. Contributions and earnings are taxed when you withdraw the money.

Eligibility: All university employees (except students working fewer than 20 hours per week) can participate.

Contribution limit: For active participants, the annual IRS limit for 2009 has been set at $16,500 for participants who are under age 50 on Dec. 31, 2009, and $22,000 for participants who are age 50 and over on Dec. 31, 2009.

Designating beneficiaries: Review your beneficiaries regularly and update them if you experience a major life event such as marriage, divorce, birth of a child, or a death. To designate or change, log into Fidelity Retirement Services NetBenefits, or contact them at (866) 682-7787.

Catch-up provision: If you have at least 15 years of employment with UC, you might be eligible to participate in the Special Catch-up Provision. Read the information on page 4 of the Summary Plan Description (PDF). If you think you are eligible, contact contact Fidelity Retirement Services, (866) 682-7787 for assistance.

Investment options: 403(b) participants can choose from a group of UC selected and monitored CORE funds. These Core Funds provide participants with a full menu of asset classes. There are other fund choices available through Fidelity and Calvert. For details on those choices, contact Fidelity Retirement Services, (866) 682-7787.

Account information including online enrollment, change or cancellation: Employees can enroll in the plan or change contributions or fund allocations by logging into Fidelity's NetBenefits Web site.

Distribution of funds: In general, active participants cannot take a distribution of plan funds they have accumulated after Dec. 31, 1988, unless they have attained age 59 1/2, have become permanently disabled, or have financial hardship. Read details. If you are over 59 1/2, log into NetBenefits or call Fidelity Retirement Services, (866) 682-7787. For hardship or disability reasons, the transaction is not available online and you must call Fidelity Retirement Services, (866) 682-7787.

Loan program: You may borrow your money under the 403(b) Plan Loan Program before retirement. Refer to the Fidelity Retirement Services Web site for more information.

Leaving UC employment: Participants who leave UC employment or retire have several options for their 403(b) plan money, including: inactive participation (leave money in the plan with a balance of $2,000 or more); a full distribution (payable to the participant or directly rolled over to an IRA or employer-sponsored plan); or a partial distribution. For details, visit the Fidelity Retirement Services Web site, or call (866) 682-7787.

Publications: Tax-Deferred 403(b) Summary Plan Description (PDF)

Need an expert? Contact Fidelity Retirement Services, (866) 682-7787, or your Benefits representative.