Retirement
Grand Valley State University Base Retirement Plan The Maintenance, Grounds and Service Staff Retirement Plan is funded by the University. Vesting is effective after 10 full years of service. Get the Summary Plan. This document provides further details of the Base Retirement Plan and an example of how benefits are calculated. Financial Planning: Supplemental Retirement Accounts The University has made arrangements for investment firms to offer financial planning, mutual funds, tax deferred annuities, and other investment opportunities. These options are made available through pretax salary reduction. You are strongly encouraged to use supplemental retirement accounts to enhance your retirement income and reduce your current tax burden. Proper planning and consultation can help reduce or eliminate financial stress during retirement. Financial Planning Supplemental Retirement Accounts Faculty and Staff are encouraged to make a pretax contribution to a supplemental retirement account to supplement their retirement income and reduce their current tax burden. Participants can contribute up to the maximum permitted by law to any of the approved retirement investment options. Faculty and Staff have the opportunity to participate in a 403b or 457b tax-deferred compensation plan. You can view the comparison chart below to assist you in determining which account(s) are most appropriate for your investment plans. Get the 403b v. 457b Comparison Chart Additional information and supplemental retirement account applications for each vendor are available in Human Resources. If you are a current GVSU faculty or staff member with an existing supplemental retirement account and wish to change your contribution amount, forms are available online. If you are a current GVSU faculty or staff member with an existing supplemental retirement account and wish to change your asset allocations, you must change those allocations directly with your vendor. Supplemental Retirement Account Approved Investment Firm Vendor List 403(b) and 457(b) TIAA-CREF 730 Third Avenue New York, NY 10017-3206 (800) 842-2776 Fidelity Investments Tax-Exempt Services Po Box 1823 Boston, MA 02105-9916 (800) 343-0860
403(b) Ms. Sharon Dykhouse Merrill Lynch Calder Plaza Building 250 Monroe Avenue Nw Ste 600 Grand Rapids MI 49503 (616) 774-4258 888-477-4750 http://fa.ml.com/sharon_dykhouse Mr. Paul Springer New England Financial 50 Louis NW Ste 400 Grand Rapids, MI 49503 (616) 456-1434 Compounding Interest Calculator This Calculator shows how much you can accumulate in a tax deferred account based on various hypothetical monthly contributions, at various rates of return, over a period of 5 to 30 years. Accumulations after 5 Years Monthly Contributions Rate of Return 3% 6% 8% 50 3,237 3,491 3,671 100 6,474 6,982 7,341 200 12,948 13,965 14,683 400 25,896 27,930 29,366 Accumulations after 10 Years Monthly Contributions Rate of Return 3% 6% 8% 50 6,990 8,163 9,064 100 13,979 16,326 18,128 200 27,958 32,653 36,257 400 55,917 65,306 72,513 Accumulations after 20 Years Monthly Contributions Rate of Return 3% 6% 8% 50 16,383 22,782 28,633 100 32,766 45,565 57,266 200 65,532 91,129 144,532 400 131,064 182,258 229,064 Accumulations after 30 Years Monthly Contributions Rate of Return 3% 6% 8% 50 29,007 48,963 70,881 100 58,104 97,926 141,761 200 116,028 195,851 283,523 400 232,056 391,703 567,045
10% 3,859 7,717 17,434 30,869
10% 10,073 20,146 40,292 80,583
10% 36,199 72,399 144,797 289,595
10% 103,965 207,929 415,859 831,717
Tax Savings Calculator This calculator shows the reduction in your take home pay and your monthly federal and state tax savings based on equal monthly contributions. 15% Federal Tax Bracket Monthly Contributions Reduction in Take Home Pay Monthly Tax Savings 50 41 9 100 81 19 200 162 38 400 324 76 28% Federal Tax Bracket Monthly Contributions 50 100 200 400 31% Federal Tax Bracket Monthly Contributions 50 100 200 400
Reduction in Take Home Pay 34 68 135 270
Monthly Tax Savings 16 32 65 130
Reduction in Take Home Pay 32 64 128 256
Monthly Tax Savings 18 36 72 144