Benefits are a direct result of the amounts contributed and the return on investments made by each participant. Post-termination distributions are determined by individual contract provisions and federal income tax law. Contracts may provide for lump sum withdrawals, periodic withdrawals or annuity income for a specified number of years or for life. There are no employer contributions under this program. A salary reduction agreement signed by the employee at any time of the year authorizes SWT to send pre-tax salary amounts to a TSA account with an approved carrier.
Some contracts provide for low-interest loans.
This voluntary program is a 457 plan and is separate from and in addition to the other retirement programs. Under DCP, an employee may enter into an agreement with the University at any time to reduce the employee's taxable income and save for retirement on a tax-deferred basis. Loans are not permitted. All companies which meet federal, state and university conditions and procedures for approval will be allowed to write Optional Retirement Program contracts. All companies which meet federal, state and university conditions and procedures for approval will be allowed to write Tax Sheltered Annuity contracts.