In a defined contribution plan, you pick how your money will be invested for retirement and you assume the investment risk. You and your employer make mandatory contributions toward your investment plan and the amount you have for retirement depends on the accumulation of contributions and the performance of the investments you choose.
The State Employees’ Retirement Board has contracted with Empower Retirement as the third-party administrator of this plan and selected a range of investment options for you to choose from, from conservative to aggressive.
You and your employer make mandatory contributions toward your investment plan each pay day. The contributions are “defined” because the amounts that you both contribute are known in advance.
You can also make additional voluntary contributions toward your investment plan; however, there may be tax advantages to doing so through the Deferred Compensation Plan.
If you leave state employment before you work three years, you have a right to your contributions; however, you would have no right to your employer’s contributions. The value of those contributions will vary with investment gains and losses.
You can transfer money between investment options (subject to plan rules) and change how your contributions are invested at any time through your online Empower Retirement account. You also can roll over balances from your other eligible plans into your SERS defined contribution plan.
Empower offers educational information and tools to help you plan for retirement and select your investments. If you want professional assistance with your investments, Empower also provides investment advisor services at an additional charge.