This page provides TMCC employees with information regarding the TMCC Retirement plan and retirement plan alternatives. See Also: Faculty Senate Emeritus Policy.
- Public Employees Retirement System (PERS):
- Retirement Plan Alternatives
- NSHE Tax Sheltered Annuity 403(b) Plan
- State of Nevada Deferred Compensation 457 Plan
- FICA Alternative Retirement Plan
PERS: Eligibility Requirements
Classified employees and some Faculty members participate in PERS of Nevada. You must be employed at 53% or greater FTE to participate in this plan.
PERS of Nevada is a tax-qualified defined benefit plan created by the Legislature as an independent public agency to provide a reasonable base income to qualified employees who have been employed by a public employer and whose earning capacity has been removed or has been substantially reduced by age or disability. It was also created to make government employment attractive to qualified employees and to encourage them to remain in government service for such periods of time as to give employers and the people of the state the full benefit of the training and experience gained by the employees while employed in public service.
PERS: Employer Paid Contribution Plan (EPC)
- Employees may voluntarily choose to participate under the Employer Paid Contribution (EPC) plan at any time.
- Contributions made by the employer under Employer Paid Contribution (EPC) retirement are not available for refund to you should you terminate your employment.
- Once you select the Employer Paid Contribution (EPC) plan, you cannot switch back to the Employee/Employer Contribution (EEC) paid plan.
- Your base salary is reduced to "offset" the contributions made by the employer to PERS.
- The employer paid option provides you with more take-home pay than the employee/employer option because of the tax treatment under each option.
To view the classified pay contribution, select Employer Paid compensation schedule.
PERS: Employee/Employer Paid Contribution Plan (EEC)
- The employee and the employer each make a contribution to PERS. The contribution made by you is on an after-tax basis.
- If you terminate during the first five years of your employment and you take a refund of employee contributions; upon termination it will close your account with PERS and result in no future entitlement to a PERS benefit.
- You may switch to Employer Paid Contribution (EPC) at any time; but you may only make this election once.
- Employee contributions remaining in your PERS account at your retirement will result in your part of your income being non-taxable.
To view the classified pay contribution select Employee/Employer paid compensation schedule.
PERS: Service Credit Purchase Estimator
You can use our calculator below to give you an estimated cost for the purchase of one year of service credit. This cost is based on your salary times the number of months purchased times the actuarial percentage based on your age.
PERS: Benefits Estimator
This benefit estimator is intended to assist you in projecting your future retirement benefits based on information that you will provide. To estimate your future retirement benefits, select benefits estimator.
Retirement Plan Alternatives (RPA)
The Nevada System of Higher Education (NSHE) Board of Regents established the NSHE Defined Contribution Plan in 1970 as an alternative to PERS of Nevada, and restated the plan on January 1, 1999. The plan document sets forth the provisions of the IRS Code Section 401(a) defined contribution plan.
Plan contributions are invested, at the direction of each participant, in one or more of the funding vehicles available to participants by the fund sponsors.
The participant contributes a percent of his/her gross salary and the institution contributes a matching percent. The plan provides for immediate vesting. The account to which the institution contributes does allow cash ability upon termination and reaching age 55, while the employee account will be 100% cashable upon termination of employment (subject to IRS withdrawal limitations). If you terminate within the first five years of employment, both account balances may be withdrawn.
All permanent employees on an annual "A" or "B" contract who are employed at least 50% full-time are eligible to participate in the NSHE retirement program, unless they are members of PERS of Nevada.
NSHE Tax Sheltered Annuity 403(b) Plan
One of the benefits available to you through the Nevada System of Higher Education (NSHE) is the ability to voluntarily save for retirement on a before-tax basis through a Tax Sheltered Annuity (TSA) which is also called a 403(b) plan.
A contribution to a TSA plan is an excellent way to supplement your retirement savings. Contributions are deducted from your salary automatically, either on a pre-tax basis or an after-tax (Roth) basis, you get to choose. If you choose a pre-tax deduction, your current taxable income is lowered by the amount of your deferral, and you will pay income tax on your withdrawals at retirement.
If you choose the after-tax (or Roth) deduction, then as long as you are 59-1/2 and your account has been active for 5 years or more when you access the funds your withdrawals may be tax free.
State of Nevada Deferred Compensation 457 Plan
The Nevada Deferred Compensation Program (NDC) is a voluntary retirement savings program for employees of the State of Nevada, NSHE and other local government employers. The program is designed to supplement your other retirement savings and pensions.
Contributions are made pre-tax and investment earnings are tax-deferred or you may invest on pre-tax (Roth) basis and your investment earnings will be tax free upon eligible withdrawal. Both types of deductions are made through payroll.
FICA Alternative Retirement Plan
The State of Nevada signed a 218 agreement with the Social Security Administration in 1954. Under this agreement the State of Nevada chose to opt out of FICA participation for their employees who qualify for a retirement plan.
Employees who participate in any of NSHE mandatory retirement plans do not contribute to FICA. There is also no employer contribution to FICA. This means that while employed for the Nevada System of Higher Education (NSHE) you will not be gaining any FICA service credits from NSHE. In addition your FICA retirement amount received from Social Security could be affected by the retirement you receive from our retirement plans.
As a part-time, seasonal or temporary employee of the State of Nevada, you are required to participate in the State of Nevada FICA Alternative Deferred Compensation Plan. As a FICA Alternative employee, you must contribute a percent of your gross compensation per pay period to the Plan. No additional contributions are permitted.
Your contributions are made on a tax deferred basis. You will be taxed on the value of your contributions (including any earnings) when you receive a distribution of your benefits from the Plan.