403(b) Savings Plan: Summary of Key Provisions

Plan Administration

• Employer: The University of Massachusetts (the “University”) is the Employer.
• Plan Sponsor: The University is the Plan Sponsor.

• Plan Administrator: The University is the Plan Administrator. The Administrator has designated the Office of Human Resources of the University to be responsible for daily operation and administration of the Plan.

  You can contact the Plan Administrator at: 
  University of Massachusetts
  50 Washington Street, Suite 3000
  Westborough, MA 01581
  Attention: 403(b) Plan Administrator

  Phone: (774) 528-0369
  Fax: (508) 986-8607
  Email: supplementalretirement@umassp.edu

• Master Recordkeeper: Fidelity Investments
• Effective Date of the Plan: The written plan document for the Plan and its provisions became effective as of January 1, 2009.
• Plan Year: The Plan Year is a calendar year.
• Amendment and Termination of the Plan: The University reserves the right to amend the Plan and/or to terminate it at any time.

Eligibility & Enrollment

Eligibility: All University employees are eligible to participate in the Plan; except students at the University whose employment is incidental to their education at the institution are not eligible.

Enrollment: You may enroll in the Plan immediately upon employment with the University.
Get instructions on how to enroll in the Plan on Fidelity's website or contact the University System Human Resources Office.

Contributions

Your voluntary contributions to the Plan are made through payroll deduction on a pretax or ROTH basis. The University does not contribute to the Plan. You control investment of your contributions, using funds available within the Plan. For pre-tax contributions, The Plan provides tax-deferral of your contributions and any investment growth and interest that accumulates in your account. Taxes are due when you take money out of the Plan. For ROTH contributions, contributions are made after all taxes from your paycheck have been deducted. The Plan provides tax-deferral of any investment growth and interest that accumulates in your account.

Maximum Contribution Amounts: The Internal Revenue Service imposes limits on the amount that you may contribute for any calendar year. The limit depends on your age at the end of each December 31.

Change Contributions: You can change the amount of your contribution at any time by logging into your Net Benefits account at www.netbenefits.com/umass.

Coordinating Contributions with other Plans: The Internal Revenue Service requires you to coordinate your contributions to this Plan with contributions to other plans, for purposes of determining your maximum contribution amount each year.

These special requirements are:

1. Voluntary Contributions: Voluntary contributions to other employers’ plans that operate under Tax Code Sections 403(b) and 401(k) must be combined with your contributions to the University’s 403(b) Plan. Your total elective deferrals to all 403(b) and 401(k) plans are limited for the calendar year to the limits set by the Internal Revenue Service each year; the 2026 elective deferral limits are referenced above. It is your responsibility to comply with the limits and to initiate corrections if the limits are exceeded. If you make voluntary contributions to any other 403(b) or 401(k) plans, you should report the amounts of your contributions to these other plans to the University Human Resources Office. Please note that you do not need to combine your voluntary contributions to the Commonwealth of Massachusetts 457(b) Deferred Compensation Plan (also referred to as the “SMART Plan”) with your contributions to the University’s 403(b) Plan.
2. Controlled Employers: If you own a controlling interest (over 50%) of an outside business and contributions are made to a qualified retirement plan or simplified employee pension plan under the outside business, the Internal Revenue Service now requires that you report these contributions to the University. Such contributions must be aggregated with your contributions to the University’s 403(b) Plan to ensure that the Internal Revenue Service limit on annual additions (also referred to as the “415 or 415(c) limit”) is not exceeded. This is a limit on the total contributions (elective deferrals, non-elective contributions, and after-tax contributions) that can be made to a defined contribution plan on behalf of a participant in any plan year. In general, the 415 limit for 2026 is $72,000. If the above situation applies to you, it is important that you report these contributions to the University Human Resources Office.

Uniformed Services: An Employee whose employment is interrupted by qualified military service, or who is on leave of absence for qualified military service, may make additional contributions to the Plan upon resumption of their employment. Contact the University Human Resources Office with questions about this provision.

Plan Providers

To improve our programs, from both the perspective of the participant and the administrator, in 2015, the University’s Supplemental Retirement Plan Investment Committee (the “Committee”) launched a competitive procurement process to select a single vendor as the primary plan provider for the University’s supplemental retirement plans. Assisted by Cammack Retirement Group (now called CAPTRUST), an independent, registered investment advisor, the Committee selected Fidelity Investments as its primary retirement plan provider. The Committee also selected TIAA as a secondary provider in order to maintain access to some of TIAA’s proprietary investment options.

There are currently two categories of Providers under the University’s Plan: Contract Providers; and Former Providers.

Contract Providers

These are the University’s primary Plan Providers who were selected through the University’s competitive bid process in 2015. The University’s Contract Providers currently receive participant contributions, via payroll deduction, under the Plan; and they have entered and operate under a Contract for Services with the University. There are currently two Contract Providers under the University’s Plan:

• Fidelity - Master Recordkeeper; 
• TIAA - Secondary Recordkeeper

New 403(b) accounts (Annuity Contracts and/or Custodial Accounts) under the Plan can only be opened with one of the Plan’s Contract Providers.

Contract Providers may receive Custodial Account and Annuity Contract exchanges in accordance with the Plan’s provisions, and such policies established by the University, which govern such transactions under the Plan.

Contract Providers may make loans and hardship distributions in accordance with the Plan’s provisions to the extent provided in their Custodial Accounts and/or Annuity Contracts that are issued under the Plan.

Contract Providers may accept rollovers in accordance with the Plan’s provisions to the extent provided in their Custodial Accounts and/or Annuity Contracts that are issued under the Plan.

Former Providers

Providers that may have issued Custodial Accounts and/or Annuity Contracts under the Plan in the past; they no longer receive participant contributions under the Plan; and they do not currently hold a valid Contract for Services with the University.

Limited Role of Former Providers in the Plan 

Former Providers may not issue new 403(b) accounts (Custodial Accounts and/or Annuity Contracts) under the Plan.

Former Providers may not receive Custodial Account and/or Annuity Contract exchanges under the Plan.

Former Providers may not make loans and hardship distributions under the Plan. Former Providers may not accept rollovers under the Plan.

Former Providers may make Custodial Account and/or Annuity Contract exchanges only to Contract Providers in accordance with the Plan’s provisions, and such policies established by the University, which govern such transactions under the Plan.

Rollovers into the Plan

The Plan accepts rollovers from other retirement plans. Rollovers into the Plan may be made only to                       accounts issued by Contract Providers.

Amounts you roll into this Plan will be treated as Plan Contributions for purposes of making distributions to you.

Contract Exchanges into the Plan

You may exchange another Custodial Account and/or Annuity Contract issued under Tax Code Section 403(b) into this Plan if the exchange otherwise meets the Internal Revenue Service’s rules governing such transactions and is in accordance with the Plan’s provisions. Exchanges into the Plan may be made only to accounts issued by Contract Providers.

Amounts you deposit in this Plan as an exchange will be treated as Plan Contributions for purposes of making distributions to you.

Loans

Loans from your account with a Contract Provider are permitted under the Plan in accordance with the rules governing loans set by the Internal Revenue Service, your Contract Provider’s product, and the Plan’s provisions. While loans from the Plan may be made for any purpose, the Master Recordkeeper or the Plan Administrator will determine your eligibility for a loan. Loans cannot be made from accounts with Former Providers.

If you are interested in taking a loan, you should contact the Master Recordkeeper to discuss submitting a loan request. The Master Recordkeeper will ask you to complete their loan request paperwork. The Master Recordkeeper or Plan Administrator will be responsible for approving the loan and will contact the Plan Administrator should additional approvals are needed.

Maximum Loan Amount: The maximum amount of your loan(s) is generally the lesser of

1. $50,000.00; or
2. 50% of your account balance under the Plan.

Minimum Loan Amount: The minimum loan from the Plan is $1,000.00

Loan Repayment Period: The loan repayment period is generally five years; the minimum period is one year.

Principal Residence Repayment: Loans from the Plan for use in purchasing your principal residence may be repaid over periods of up to fifteen years to the extent provided in the Contract Provider’s Custodial Accounts and/or Annuity Contracts that are issued under the Plan.

Outstanding Loans: Participants may have only two loans outstanding at any time under the
Plan.

Loan Defaults: If you default on your loan payments, then your loan will be considered a taxable distribution to you from the Plan. A loan currently in default precludes you from taking another loan under the Plan.

Distributions

Distribution Trigger Events: Distributions from the Plan are payable to either you or your beneficiaries upon one of the following “trigger events”:

• Your termination of employment with the University;
• Your attaining Age 59 ½ years;
• Upon your becoming disabled (the Plan Administrator determines a participant’s disability in accordance with the Plan’s provisions);
• Because of “financial hardship” you incur (as defined by the Internal Revenue Service, additional information is provided below); and
• Upon your death.

If a “trigger event” has occurred, and you wish to take a distribution, you need to contact the Master Recordkeeper or your Former Provider to request the distribution. You will be asked to complete distribution request paperwork. When seeking a distribution from a Former Provider, either you, or your Former Provider, will need to submit the completed distribution request paperwork to the Plan Administrator for approval. When seeking a distribution from the Master Recordkeeper, the Master Recordkeeper will manage and approve the distribution.

You should also discuss with your Provider which distribution payment method best suits your needs.

Financial Hardship: The Internal Revenue Service defines “financial hardship” to be an immediate and heavy financial burden that cannot be met by resources other than your assets in the Plan. The Master Recordkeeper will determine your eligibility for a distribution from the Plan because of financial hardship. The Master Recordkeeper will use the Internal Revenue Service’s Safe Harbor method when making the hardship determination. Under the Safe Harbor method, before taking a hardship withdrawal you will be required to first obtain all loans and other distributions available under the University’s Plan. If the loan and, if applicable, other distribution does not meet your needs, then you may be eligible to take a hardship distribution. To request a hardship distribution, please contact the Master Recordkeeper.

Rollover of Distributions: The Plan will rollover distributions to a qualified recipient plan or Individual Retirement Account, subject to an applicable “trigger event”, upon your request. Please note that not all distributions are eligible for rollover treatment. You should discuss distribution types with your Provider, and tax matters with qualified counsel.

Required Minimum Distributions: As per the Internal Revenue Service’s definition, Required Minimum Distributions are...."minimum amounts that a retirement plan account owner must withdraw annually starting with the year he or she reaches 73 years of age or, if later, the year in which he or she retires.” You should contact your Provider(s) to determine the amount of your required minimum amount.

Taxation: Income tax is payable on amounts you draw from the Plan, if you made your contributions on a pre-tax basis. Your Provider will assist you with any tax withholding that is either required by state and federal governments or requested by you. You should discuss all tax matters relating to the Plan with qualified counsel.

Early Withdrawal Penalty: Certain distributions paid prior to your attaining age 59 ½ may be subject to a 10% Early Withdrawal Penalty imposed by the Tax Code.

Permissive Service Credit Transfers

Participants who are members of the State Employees Retirement System, or other qualified state defined benefit plan, may transfer funds from this Plan to the state pension plan for purposes of purchasing service credits. These transfers may be made only if the state pension plan accepts such transfers.