What is the long-term effect on my retirement benefit?
Participation in the term life plan will not affect your benefit under the Retirement System. In addition, it will not affect the amount you may contribute to the State’s 401(k) plan or to a 403(b) or 457 retirement plan. Plan participation may affect your future Social Security retirement benefits. This could happen if your taxable pay (after pre-tax contributions are taken out) is below the Social Security taxable wage base ($90,000 for 2005). For most employees, the immediate tax savings is a far greater benefit than the long-term impact on Social Security benefits.
