If you are a University employee looking to pack away money for retirement while reducing taxable income, you may be interested in UC’s newest personal savings device, called the 457(b) Deferred Compensation Plan. As of October, this plan allows participants to contribute up to $13,000 from their salaries in 2004 (the limit is $16,000 if over age 50) into tax-deferred accounts managed by UC.

An hour-long informational meeting on 457(b) plan features will be held on Friday, Oct. 8, at 9 a.m. in the UCen Flying A Room. Seating is on a first-come, first-served basis. Like any federally approved plan, the 457(b) has rules and requirements. It is not available, for example, to UC student employees who normally work less than 20 hours a week. But it may appeal to employees who already have 403(b) accounts, since the law allows ownership of both kinds of savings plans and maximum contributions to each. Under this rule, an employee, age 49, with 403(b) and 457(b) accounts could put aside up to $26,000 of her salary before taxes this year. The maximums will rise next year, as explained in an online booklet, “The University of California 457(b) Deferred Compensation Plan.” It is on the Web at <http://atyourservice.ucop.edu/news/retirement/
new_457b_plan.html>. Fidelity Investments, which was hired as the 457(b) plan record keeper, will handle employee enrollments, fund transfers, and distributions. It is expected to have a representative at the Oct. 8 meeting. Enrollment and other questions about the new plan should be directed to Fidelity at 1-800-343-0860. Ask for a retirement services specialist. Employees who wish to begin deductions with their November paycheck will need to complete enrollment by mid-October.