Special Pay Plan
The Special Pay Plan is a defined contribution plan authorized under Section 401(a) of the Internal Revenue Code. Faculty, TEAMS, and USPS employees who receive vacation and/or sick leave cashouts $5,000 or more will participate. The cashout funds, which are not subject to Social Security taxes, are used to set up a tax-deferred account in the participant’s name. Participants decide how to allocate the money in their account among the available investment funds.
How the Process Works
The employee works with their department to initiate a leave cashout. It generally takes six to eight weeks from the time the cashout is initiated to when the account is established.
IRS Contribution Limits
The limit for this plan is based on our fiscal year. Visit the Retirement Plan Contribution Limits page for the maximum allowable contribution. The amount eligible for this plan is fifty percent of the employee’s total fiscal year earnings (regular wages plus the leave cashout).
- Plan Document – Coming soon
- SPP Info Letter
Loans and hardship withdrawals are not permitted.
Update My Beneficiary
Login to your Fidelity account to update your beneficiary information.
During the transition to Fidelity Investments, employees who need to contact the former Special Pay Plan administrator, AIG, may reach out to the AIG Client Care Center at 1-800-448-2542.