Plan Overview and Eligibility
This program provides employer contributions to the ABP retirement plan for Rutgers employees who have earned in excess of the $175,000 compensation limit.
Plan Background and History
State pension law provides for a 5% employee contribution and an 8% employer contribution to the mandatory 401(a) Alternate Benefits Program (ABP), up to the Federal IRC annual compensation limit (currently $345,000 in 2024). Effective July 1, 2018, Chapter 14, P.L. 2018 was signed into law, which only allowed employer contributions to the 401(a) ABP on salaries up to $175,000. In response to the State-imposed limit, Rutgers University established the Alternate Benefits Program Plan and Trust. Through this program, Rutgers University continues to make the full 8% employer ABP contributions for salaries in excess of $175,000, up to the Federal IRC annual compensation limit of $350,000 in 2025.
How to Enroll
Eligible employees in Rutgers positions with salaries in excess of $175,000 are automatically enrolled in the Plan. This plan is administered by TIAA. For more information, call TIAA at (800) 842-8412.