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Teacher/Employee Recruitment and Retention Program (TERRP) 401a Plan


Nearly 15 years ago school districts in Region 10 approached the service center about helping them recruit and retain teachers without increasing their already spiraling salaries budgets. The TERRP program utilizes the provisions of section 401a of the Internal Revenue Code that allows districts to “match” an employee’s contributions to their own 403b or 457b retirement savings. Within the program, each district designs a unique incentive program that benefits employees and addresses the needs of the district.


Plans have been designed:

  • to encourage employee attendance
  • as a unique benefit for use in recruiting teachers
  • to encourage employees to stay in the district
  • as incentive reward for various accomplishments of the district or campus


Most districts recognize that the plan also acts to encourage supplemental retirement saving by their employees since the each individual must be contributing to a 403b or 457b to be eligible for the match funding.

As of March 31, 2023, the Region 10 RAMS TERRP trust held $76.7 million for 21,030 employees in 42 entities.

457 Cooperative
As of March 31, 2023, the Region 10 RAMS 457 Cooperative Plan held $501.3 million for 36,239 employees in 192 entities.

FICA Alternative
As of March 31, 2023, the Region 10 RAMS FICA Alternative Plan held $285.9 million for 456,213 employees in 186 entities.

403(b) TPA
As of March 31, 2023, the Region 10 RAMS 403(b) TPA service was being utilized by 184 entities to monitor the individual plans of 50,257 employees.