8.13 – Deferred Compensation (457 Program)

PART 1: ELIGIBILITY TO PARTICIPATE

This Rule authorizes eligible employees to elect participation in the university’s voluntary deferred compensation program. All employees are eligible to exclude a portion of their salary, within IRS prescribed limits, from their current taxable income and invest those contributions in a university approved deferred compensation plan.

PART 2: PAYROLL DEDUCTION

Method of Contribution: Contributions are made via payroll deduction.

PART 3. SUPPLEMENTAL TO ERB

The employee’s contribution to an approved deferred compensation program may be in addition to the New Mexico Educational Retirement Account, the New Mexico Alternative Retirement Program and Tax Sheltered Annuity (403b) contributions.

PART 4: SELECTION OF PROGRAM

Employees may choose from a list of approved companies that offer 457 programs for the university.

PART 5: CESSATION OF COVERAGE

The employee’s deferred compensation contributions cease when an employee terminates employment, retires, completes a Salary Reduction Agreement to cancel participation to the program or when contributions have exceeded annual maximums permitted by the IRS. The university will set all 457 contribution amounts with a maximum allowed by the IRS, unless otherwise instructed by the employee on the salary reduction form.