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403(b) plan

Welcome to your 403(b) retirement plan. Click below to view the features and highlights of your employer’s retirement plan.

The plan highlights are only a brief overview of the plan's features and are not a legally binding document. The information in this section does not modify the terms of the plan and in the event of a conflict, the terms of the plan control.

An excellent way to save for retirement

Employees of Chicago Public Schools (CPS) who normally work 20 hours or more per week are eligible to make elective deferrals by salary reduction.

Starting early has its advantages

Employee contributions
You may contribute as much as 100% of your annual includible compensation up to the maximum IRS contribution limit. 

You may increase or decrease the amount you contribute to the plan as often as your employer allows.

Includible compensation is not reduced by elective salary reduction contributions to the 403(b) program or other plans sponsored by CPS.

Contribution limit

Catch-up contributions

You may qualify for a higher level of elective contributions than those described above if certain requirements are met:

Catch-up contributions

Employer contributions

CPS may make employer contributions to the plan on behalf of eligible employees. The amount, if any, of employer contributions is determined by CPS in its full discretion each year.

Accessing your money before retirement


Your plan was established to encourage long-term savings. A 403(b) plan has less stringent withdrawal restrictions while you are employed; however, a 10% federal tax penalty can apply to withdrawals prior to age 59½. The 10% federal tax penalty on early withdrawals may also apply to amounts rolled into the 457(b) plan from non-457(b) plans.

  • A distribution may be made in these events:
  • Attaining age 59½
  • Retirement or separation from service*
  • Your death or total disability
  • Hardship withdrawals (from employee contributions only)

Minimum distribution required at attaining age 72 (age 70½ if born before July 1, 1949) or upon retirement, whichever is later. 

Bear in mind that income taxes are payable upon withdrawal. 

* Distributions where the employee retires or separates from service at or after age 55 are not subject to the 10% early withdrawal federal tax penalty.



Tax-free loans make it possible for you to access your account without permanently reducing your account balance. Defaulted loan amounts (not repaid on time) will be taxed as ordinary income and may be subject to a 10% federal tax penalty if you are under age 59½.

An array of investment choices

You decide how to invest your plan account. The following funds are available in your retirement plan. They provide you with the flexibility you need to create a suitably diversified portfolio that matches your personal retirement time horizon, investment risk tolerance and investment preferences.


To obtain a Portfolio Director prospectus and underlying fund prospectuses, visit www.aigrs.com or call 1-800-428-2542 and follow the prompts. The prospectuses contain the investment objectives, risks, charges, expenses and other information about the respective investment company that you should consider carefully before investing. Please read the prospectuses carefully before investing or sending money. Policy Form Series UIT-194, UITG-194 and UITG-194P.