University of Massachusetts 403(b) Elective Deferral Savings Plan
As an employee of the University of Massachusetts, you have valuable retirement investment options available to you, one of which, the University of Massachusetts 403(b) Elective Deferral Savings Plan makes it easy to save and invest more for retirement with special tax advantages and the convenience of regular payroll deductions.
By saving just a little more from each paycheck now, you can make a big difference in the amount you could have to work with when you retire. Your participation in the University of Massachusetts 403(b) Elective Deferral Savings Plan is a significant step toward helping you prepare for your retirement goals. For 2019, if you are under age 50, your 403(b) plan elective deferral limit is $19,000.00. If you are age 50 or older, your 403(b) plan elective deferral limit is $25,000.00.
Pay Less in Taxes While Saving for Retirement: Traditional 403(b) contributions are deducted from your gross income before tax, meaning your contributions allow you to reduce your federal and state income taxes. For example, a pretax contribution of $10 per biweekly paycheck actually translates to only an $8 deduction from your net pay (if your combined federal and state tax rate is 20%).
Realize Your Tax Savings Later (New Plan Feature): Roth 403(b) contributions are now available! With the Roth 403(b) contribution option, your contributions are deducted from your pay after income taxes are taken out, meaning you do not receive an immediate tax break. As with traditional contributions, earnings grow tax deferred. Since you already paid tax on Roth contributions, you will not owe tax when you withdraw them. If your withdrawals of earnings are qualified (typically if it has been five years since your first Roth contribution and you are over the age of 59 ½), those distributions are completely tax free also.
As of April 1, 2016, the University has moved to a new record keeping model and plan design that includes a much smaller investment lineup, which will be carefully reviewed and monitored in terms of fees and performance. The new plan structure also includes a self-directed brokerage window, which will allow access to a larger selection of investment options that will not be under the direct oversight of the plan. The benefits of these new enhancements include: a streamlined, efficient investment lineup comprised of high quality and competitively priced funds; enhanced participant services; reduced overall administrative/participant costs; significantly improved employee communication, education and assistance.
To start or change a biweekly contribution amount:
First time users, you will need to register with your full name, date of birth and the last 4 digits of your social security number. If required, the University’s Plan number is 50266. Once registered you will be able to start biweekly payroll deductions and choose an investment lineup.
If you are already participating in the plan and would like to make a change to your biweekly contribution amount, please visit www.netbenefits.com/umass.
If you need assistance with the NetBenefits system, see the User Guide.
Commonwealth of Massachusetts 457 Deferred Compensation Plan (SMART Plan)
Massachusetts Deferred Compensation SMART PLAN is a retirement savings, 457(b), deferred compensation plan. The plan allows employees to save and invest before tax dollar through salary deferrals. Empower Retirement (formerly Great West), on behalf of the Commonwealth of Massachusetts, serves as the third-party administrator and record-keeper for the SMART Plan. University employees may contribute up to the maximums for both the University's 403(b) Plan and the SMART Plan. Please click here for a brief comparison of 457(b) and 403(b) plans.
All full-time and part-time benefitted employees are eligible for the group legal plan offered through MetLife. MetLaw is a voluntary benefit that provides an employee, their spouse, and dependents with convenient, professional legal counsel for $18.25 per month through payroll deductions. The plan provides fully covered legal advice and representation for most legal matters. To enroll in the plan, terminate your coverage or make changes, please visit UMass Compass.
Open enrollment runs January 1st - January 31st of every year.
5.3 Auto, Homeowners/ Renters Insurance
Auto, Home/Renters Insurance
Automobile & Homeowners/Renters Insurance
All full-time and part-time benefitted employees are eligible for group discounts offered through Liberty Mutal, MetLife or Travelers for auto and home owners insurance through payroll deduction.
For more information or to enroll, go online to https://www.fidelity.com/go/529-Massachusetts/overview or call 1-800-544-2776 to speak to a dedicated U.Fund College Investing Plan representative. Once your account has been set up with Fidelity, your contributions can be made automatically from your bank account, your Fidelity Account, or with direct deposit from your paycheck.
The University of Massachusetts is now offering a new voluntary Long-Term Care (LTC) Insurance program from Mutual of Omaha.Theopen enrollment ends 10/11/19.
Why Act Now?
Reduced underwriting for eligible employees
25% pricing discount if you are married / have a partner
Discounted worksite rates
Premiums are based on your age - apply while your premiums are at their lowest
Coverage is fully portable - you can take this benefit with you after employment
Why is LTC Planning Important?
LTC is an important part of a personal financial plan. As we age, the likelihood of needing LTC increases and the average cost of home care is $43,000/year* or more. Your health insurance, disability, and Medicare do not cover most LTC costs. LTC insurance is designed to protect your retirement savings from the cost of LTC services if you need care in the future.
Visit the LTC insurance website at https://www.getltci.com/umass for more information, to run a quote and apply. To login, you'll need your work email address as your user name and your password. For issues logging in, click "Forgot Password" to reset and establish a new password.
If you have any questions or for a one-on-one consultation, contact your LTC enrollment team at (888) 428-6075.
About this Handbook
This Employee Handbook is provided as a guide for Non-Unit Employees at University of Massachusetts President's Office and is not to be considered a contract of employment. Only written statements signed by an appropriate officer of the University are valid and binding employment contracts.