You may enter into a salary reduction agreement, separate from the Section 125 Plan to have deposits made with one of the approved companies for the purchase of a retirement annuity.  Participation reduces your taxable income and the money invested earns interest usually above average rates.  You pay taxes when the money is withdrawn.

Information on each of the approved companies can be obtained from your Human Resources or Insurance Department.  Current approved companies are:
 
 

AIG Retirement

American Century

Hartford

Oppenheimer

ValuTeachers, Inc.