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Tax-Deferred Annuity Program (TDA)

The TDA Plan is designed to provide endowed and contract college employees with the opportunity to supplement their retirement income. Employees elect the amount that will be contributed to their TDA Plan account directly from their pay on a pre-tax basis. This contribution is made directly from payroll, and is not subject to federal or state withholding tax.

Salary Reduction Agreement Form
Salary Deduction Agreement Form (Arecibo)

Eligibility
Endowed and contract college employees who are on the University payroll with FICA deductions.

Contributions
All contributions are elected and made by the participant. Generally, participant contributions cannot exceed the annual dollar limitation ($15,500 for 2008). This limitation is determined by the federal government and may change from year to year. If the participant will be at least age 50 in calendar year 2008, then an additional $5,000 may be contributed for a limit of $20,500. If the participant has at least 15 years of service with the University, then an additional amount, up to $3,000, may be permitted to be contributed. Contact Benefit Services for more information.

Please contact Benefit Services for questions on the maximum amount that you are eligible to contribute for this current year.

TDA Plan Accepts Rollovers from Other Retirement Plans
Participants in the TDA Plan can rollover their account balances from other retirement plans into their TDA Plan account. Rollovers can be accepted from 401(k), 401(a), 403(a), governmental 457(b), profit sharing, and stock bonus plans. In addition, account balances in a personal IRA can also be rolled over into the TDA plan account. The TDA plan has always accepted rollovers from other 403(b) plans and will continue to accept these rollovers.

For more information or to obtain a Rollover Application, contact the investment vendor into which the account balances will be rolled:

To set up a personal appointment with the investment vendors, call:

TIAA-CREF (877) 209-3144

Fidelity Investments (800) 642-7131

Investments
These contributions are currently deposited with either TIAA-CREF or Fidelity Investments on a per pay period basis for each participant. Each participant selects the investment funds into which these contributions are deposited. Currently, TIAA-CREF and Fidelity Investments offer over 200+ investment funds for investment of these contributions. Quarterly statements are mailed directly to the participant’s home or sent on-line to the participant by the investment vendor. The quarterly Vendor Performance Summary is available on line for your convenience.

A participant may change their investment selection for their current account balance at any time by contacting either TIAA-CREF or Fidelity by phone or on line to move money from one fund to another within the same investment vendor, or by contacting Benefit Services for the appropriate forms to transfer money from one investment vendor to the other vendor. A participant may also change their investment selection for future contributions by contacting Benefit Services for the appropriate forms.

Vesting
All eligible participants are fully and immediately vested in their account balance under the Plan. The participant’s account balance is nonforfeitable at all times.

Distributions