Contributing to supplemental retirement plans reduce your taxable income. Along with your pension and Social Security income, you can save through the Texa$aver program or a 403(b) to achieve the additional income you need when you retire. These are deferred compensation program that allows you to invest a portion of your income before taxes.
The tax deferred annuity program or supplemental retirement annuity is offered to all benefits eligible employees. Investments are through life insurance companies and mutual fund companies licensed to do business in the State of Texas. All contributions are excluded from taxable income until distributed from the account to the employee. Contributions to a TDA are employee only. The minimum monthly contribution is $25.00. An employee can withdraw contributions from the account at separation of service or upon obtaining age 59 1/2.
Employees may enroll in a TDA at any time. However, they are allowed to change carriers only twice per year.