University Administrative Policies


UNM_Policy_Office-L communicates important policy announcements (such as policy approvals, revisions, or campus review-and-comment periods).

UNM Policy Office

MSC05 3357
1 University of New Mexico
Albuquerque, NM 87131

Physical Location:
Scholes Hall
114 A and B

Phone: (505) 277-2069

Administrative Policies and Procedures Manual - Policy 3640: Supplemental Retirement Savings Plans

Date Originally Issued: 07-30-1982
Revised: 11-01-1991, 12-23-1993, 04-01-1994, 08-23-1999, 08-01-2006, 02-01-2007, 01-01-2012

Authorized by RPM 6.3 ("Privileges and Benefits")
Process Owner:  Vice President for Human Resources

1. General

Employees may enter into contracts for supplemental retirement savings plans covered by Sections 403(b) and 457(b) of the Internal Revenue Code,  and have the savings payments made by bi-weekly or monthly payroll deduction. Contributions are made on a pre-tax basis and the earnings grow tax deferred until withdrawn at retirement. At that time, the employee's income and tax rate may be lower; however, depending on the savings plan there may be penalties for early withdrawal. Various companies offer supplemental retirement savings plans for UNM employees and the list of participating companies and payroll deduction forms may be viewed on the University Payroll Department website The University only processes payroll deductions and does not endorse any of the participating companies.

2. Employee Eligibility

All University employees other than Student Employees are eligible to participate in supplemental retirement savings plans.

3. Contributions

The maximum amount an employee may contribute to supplemental retirement savings plans is defined by the Internal Revenue Code and varies depending on the plan and the employee's age.  Employees may participate in one or both of the supplemental retirement savings plans up to the IRS limits for each plan.  There are many similarities between a 403(b) and a 457(b) plan, but there are some differences employees need to understand and evaluate when deciding whether to participate in a 403(b) or 457(b) plan or both.  These differences pertain to contribution limits, catch-up provisions, distribution rules, and IRS early-withdrawal penalties.  This decision depends on the employee's specific career and retirement objectives.  Employees should also consider the investment objectives, risks, charges, and expenses of the various products before investing. Employees should consult with a financial advisor or a representative from a participating company before investing in or taking a distribution from a supplemental retirement savings plan.

4. Vendor Requirements

The University reserves the right to regulate the solicitation practices of all agents or vendors conducting business on campus. Any vendors interested in offering supplemental retirement savings plans to University employees must contact the University Payroll Department. In order for a vendors to offer supplemental retirement savings plans, they must comply with this policy and sign the University's Letter of Compliance. Those vendors that market supplemental retirement savings plans to University employees must meet the following conditions.

4.1. Solicitation on campus, by telephone, or other means is prohibited;however, appointments are allowed at the request of the employee. Any written material must have prior approval from the University Retirement Plans Employee Benefits Services Manager.

4.2. Information and/or written material referring to the University of New Mexico shall not be used without the written approval of the Vice President for Human Resources.

4.3. A vendor authorized to market supplemental retirement savings plans to University employees shall only market products on campus approved by the University Payroll Department and the Division of Human Resources. 

4.4. Vendors must furnish data pertinent to the vendor and the supplemental retirement savings plans upon request by the University.

5. Modification to Individual Contracts

The University allows employees to change existing contracts whenever necessary in compliance with the Internal Revenue Code.