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TSA overview

The University of Northern Colorado sponsors a supplemental 403(b) retirement plan (the "TSA"). Eligible employees can voluntarily elect to defer a portion of their compensation to the TSA to supplement their retirement savings. The TSA is a supplement to the ORP (and PERA). Participation in the TSA does not reduce any University benefits based on full salary.

Who is eligible?

In general, employees who work at least half time or more or who work 20 hours or more per week on a biweekly basis are eligible. All academic faculty, state classified and administrative professional employees are eligible to contribute to a TSA.

Starting early has its advantages

How much is contributed?

Generally, employees can contribute up to 100% of their gross salaries up to the maximum IRS contribution limit. In addition, you may be eligible to contribute additional catch-up amounts if you meet the conditions below. 

2022 contribution limit

Your contribution limit for 2022 is $20,500.

2022 catch - up contributions

> An additional $3,000 if you have 15 more years of service and have undercontributed in prior years, and 

> An additional $6,500 if you are age 50 or older.

When are the contributions to my TSA plan vested?


How are these contributions invested?

Your contributions are invested in an annuity issued by The Variable Annuity Life Insurance Company. You may choose from a variety of funds including our stable value (interest bearing) Fixed Account Plus and/or our variable options. Your financial professional will meet with you personally to design an investment program based on your goals, risk tolerance and time horizon, and will conduct a face-to-face annual review of your investments -- more often if you desire.

Accessing your money before retirement

When can I take a distribution from my TSA account?

You may take a distribution from your TSA account following the date:

  • you terminate employment,

  • you attain 59½ or older, 

  • you become disabled, or

  • your death.

A participant on qualified military leave for more than 30 days will be considered to have terminated employment for purposes of taking a distribution from his or her TSA account. 

Please note that income taxes are payable upon withdrawal and federal restrictions and a 10% tax penalty may apply to early withdrawals. Be sure to talk with your tax advisor before withdrawing any money from your plan account.

May I take a loan from my TSA plan?

Yes, loans are available. Tax-free loans make it possible for you to access your account without permanently reducing your account balance. Please note that defaulted loan amounts will be taxed as ordinary income and may be subject to a 10% federal tax penalty if the employee is under age 59½.

I have a retirement plan from a previous employer. May I transfer this account to my AIG Retirement Services TSA plan?

Yes, if your previous employer's plan allows transfers.

Important considerations before deciding to move funds either into or out of an AIG Retirement Services account
There are many things to consider. For starters, you will want to carefully review and compare your existing account and the new account, including: fees and charges; guarantees and benefits; and, any limitations under either of the accounts. Also, you will want to know whether a surrender of your current account could result in charges. Your financial professional can help you review these and other important considerations.

What happens to my account if I leave the University of Northern Colorado?

Subject to the terms of your TSA account at AIG Retirement Services, you may leave the account invested in the TSA, take a distribution, or roll the account assets to an eligible retirement plan.

What is the Guaranteed Death Benefit?

In the event of your death prior to age 70, your beneficiary(ies) will receive the greater of either the value of your account or the sum of your contributions plus interest at an annual rate of 2% reduced by any prior withdrawals. The Guaranteed Death Benefit also applies to any assets that you transfer from other retirement plans. Guarantees are backed by the claims-paying ability of The Variable Annuity Life Insurance Company.