34 · Survey Results: Survey Questions And Responses
RETIREMENT PLANS: DEFINED CONTRIBUTION
A deﬁned contribution plan does not promise a speciﬁc amount of beneﬁts at retirement. In these plans, the employee or the
employer (or both) contribute to the employee’s individual account, sometimes at a set rate, such as 5 percent of earnings annually.
These contributions generally are invested on the employee’s behalf. The employee will ultimately receive the balance in their
account, which is based on contributions plus or minus investment gains or losses.
Examples of Deﬁned Contribution Plans
401(k) Retirement savings plan funded by pre-tax employee contributions and (often) matching contributions from the employer; the
funds grow tax-free until they are withdrawn; funds may be transferable to a subsequent employer.
Roth 401(k) Retirement savings plan funded by post-tax employee contributions and (often) matching contributions from the
employer; the funds grow tax-free; funds may be transferable to a subsequent employer.
SIMPLE IRA Savings Incentive Match Plan for Employees of Small Employers IRA plan for employers with 100 or fewer employees.
457 Tax advantaged deferred-compensation retirement plan that is available for governmental and certain non-governmental
employers; the employee defers compensation into the plan on a pre-tax basis.
403(b) A tax-sheltered annuity plan offered by public schools and certain tax-exempt organizations; similar to a 401(k) plan.
IRA Individual Retirement Accounts are self-directed tax-deferred investment accounts.
Roth IRA Individual Retirement Accounts are self-directed investment accounts that offer tax-free earnings on assets in the account.
SRA Supplemental Retirement Annuity tax-deferred retirement plan.
SEP Simpliﬁed Employee Pension Plan
401(a) An employer-sponsored, qualiﬁed retirement plan in which the employee may defer earnings and the employer may make
contributions which grow tax deferred until withdrawn.
10. Are library staff offered a deﬁned contribution retirement plan such as or similar to the examples
Yes 47 84%
No 9 16%
If you answered Yes, please answer the following questions about the plan(s). If a deﬁned
contribution plan is offered with a variety of employer contributions, please respond for the plan
with the highest employer contribution.