Webster CSD 403b Resource Page

Let us help you navigate the retirement benefits so you can focus
on your career at webster! 

Throughout this page, you will find links to our Exclusive Public School Employee Scheduling Page. Please utilize us as a resource!

About Us

We have been lucky enough to partner with local public school districts for a number of years to help employees truly understand what they have available to them. Our group has specialized in this area since 2003. We are independent financial advisors that pride ourselves on ALWAYS doing what is in the Best Interest of our clients first and foremost.

NYS Pension

If you joined the pension system before January 1st, 2010, chances are you are in Tier 4. Highlights for those in Tier 4 include:

• Paid 3% of each paycheck for the first 10 years of membership
• Benefit is determined by Final Average Salary (average of 3 highest consecutive earning years and Service Credits (number of years worked)
• The more Service Credits earned, the higher % of your F.A.S.
  • Years 1-19 earn 1.67% per year
  • Year 20 all prior years go to 2% per year for a total of 40% at year 20
  • Year 20-30 earn an additional 2% per year
  • Year 31+ earn an additional 1.5% per year
  • Full Benefit can start at age 57 with 30 years OR age 62 (with as little as 5 years)

If you joined the pension system Between January 1st, 2010 and March 31st, 2012, you should be in Tier 5. Some highlights of Tier 5 are:

• Pay 3.5% of each paycheck for the entirety of your employment 
• Benefit is determined by Final Average Salary (average of 3 highest consecutive earning years and Service Credits (number of years worked)
• The more Service Credits earned, the higher % of your F.A.S.
  • Years 1-19 earn 1.67% per year
  • Year 20 all prior years go to 1.75% per year for a total of 35% at year 20
  • Year

If you're not a Tier 4 or 5, you are probably a Tier 6 employee in the NYS Pension. This means you were hired in NYS after April 1st, 2012. Some highlights of your tier:

• Paying 3%-6% of each paycheck to NYS (sliding scale)
• Benefit is determined by your Final Average Salary (average of 5 highest earning, consecutive years) and Service Credits (number of years worked)
• The more Service Credits earned, the higher % of your F.A.S.    
  • 20 Years (20 Service Credits) = 35% of FAS
  • Each additional year (service credit) = +2%
  • Full Benefit can start at age 63

Saving For Retirement

• Risk Tolerance - Market fluctuations will happen. How would you react if you saw a market pull-back reflected in your account?
• Time Horizon - How long until you are expecting to retire or begin using the money you're saving?
• Other Assets - How will other assets/incomes effect your retirement income picture?
• Income & Lifestyle - Not just right now, but how do you picture your life style in retirement? Let's plan for that!

Why Are There So Many Options?

There are a lot of options which can be a good thing or a bad thing. It's bad because it can certainly be overwhelming especially when you probably haven't heard of a lot of the companies.

The good thing is with a lot of options, comes a lot of competition. You can think of it as a list of companies competing for your business! We would be happy to go over this list with you to determine what makes the most sense right now. Some things that you should consider before choosing which of these companies to utilize.

1. Surrender Periods  
   • Be aware of accounts that have a "surrender period." These are common in annuity 403b's. Some accounts have a 12-year surrender period meaning you can't switch providers within 12 years without paying an additional fee to do so. 
2. Fees  
   • A lot of the options on the provider list have not "modernized" the fees charged within. Know what you are paying and how your advisor is being compensated. Ask them how that compares relative to the other providers on the list.
3. Conflicts of Interest  
   • If you see "Company X" on the provider list and then somebody FROM "Company X" recommends using "Company X"... there may be a conflict of interest.

Traditional 403b or Roth 403b?

This is such an important question and one that is really so personal to you and your situation. The differences are below. Which one you should be emphasizing more depends on a number of factors and will most-likely change several times over the course of your career. Let us help you! Some school districts don't offer a Roth option, but there is other ways you can save on a Roth basis, like in a Roth IRA.

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