The Cash Match Program was established April of 2000 for qualified state
employees. The Cash Match Program is a supplemental retirement program in
which employees may participate if they are also participating in a
Tax Deferred Annuity (TDA) or the
State Deferred
Compensation Plan. The university will contribute 50% of the
amount an employee contributes up to a maximum of $20.00 per pay period.
To receive the maximum amount currently authorized, an employee must
contribute $40.00 per pay period to a tax deferred plan and the university
will contribute $20.00 per pay period to the Cash Match Program for that
employee. If you start your tax deferred plan at a lower amount, you will
receive a match equal to 50% of the amount you contribute up to a maximum
of $20.00. The Cash Match Program is a good way to increase your savings
for retirement.
A tax deferred annuity is taken from your check on a pre-tax basis so that
your take home pay does not actually decrease by the amount of money you
contribute. A $40.00 deduction for a tax deferred plan might amount to a
$35.00 decrease in your take home pay depending on how many exemptions you
claim and your filing status, single or married. The difference is that
you do not have to pay income taxes on the $40.00 you send to a tax
deferred plan until you retire and start taking distributions from the
funds you have collected in your tax deferred account.
Prior to July 1, 2002 only full-time, salaried employee with twelve
months of continuous state service were entitled to participate in this
program. Beginning July 1, 2002 the requirement of twelve-months of
continuous state service was deleted. If you decide to set up an eligible
tax deferred plan without participating in the Cash Match Program, you
must submit a written request to the Tax Compliance Manager or the Payroll
Office to “opt out” of the program. Otherwise, enrollment in the plan is
automatic.
Other information concerning the Cash Match Program may be found on the
Radford University's
Human Resource web page.
The
Cash Match enrollment form may by downloaded as a PDF document.