Special Pay Plan Overview
What is the Special Pay Plan?
The Special Pay Plan was a mandatory 403(b) retirement plan to faculty and staff employees funded through accrued annual, sick and compensatory leave cash-outs at the time of separation and/or DROP participation or when transferring out of an annual leave accruing position.
Effective Date of the Plan
The Special Pay Plan was implemented effective July 1, 2004 and was repealed on July 1, 2014.
Current Status of the Plan
The Special Pay was frozen July 1, 2014 which means that the plan remains intact but no new contributions are permitted. If you already have funds invested in the plan, you will be eligible to receive it just as you would have before the freeze.
Withdrawals from the plan may be made at the following times:
Distributions from the plan can be requested by the participant by contacting VALIC.
Withdrawals from the Plan may be made in a lump-sum cash payment or plan balances may be rolled over to an IRA or other eligible retirement plan with no penalty. Contributions may also remain in the account after separation from the University or taken in periodic payments.