An employee age 21 or older after one year of service and working at least 1,000 hours per year, and an employee age 21 or older who worked for another institution of higher education immediately prior to hire by the College and who was eligible for that institution’s 403(b) plan, is qualified to enroll in the College Retirement Plan (a defined contribution plan) and receive a contribution equal to 11% of base annual salary. The College enrolls employees four times per year, in January, April, July, and October. An employee becomes fully vested in the plan after 3 years of employment.
The College currently offers two companies to choose from: Fidelity Investments, and Teachers Insurance Annuity Association/College Retirement Equities Fund (TIAA-CREF).
Salary reduction allows an employee to set aside money from gross salary before taxes. Salary reduction not only offers the benefits of untaxed growth and earnings on contributions but also lowers taxable income and current taxes. There are limits on the total contributions through salary reduction allowed by the IRS. Human Resources can assist in determining maximum contributions.
Salary deduction, through a Roth 403(b), allows an employee to set aside money from net salary after taxes have been taken out. Since taxes have already been paid, accumulations in a Roth 403(b) account are considered as tax-free income in retirement.
An employee, including one who is not eligible for the retirement plan, may elect to make pre-tax contributions to retirement savings by establishing a Tax Deferred Annuity (TDA)/Supplemental Retirement Account (SRA/GSRA), or after-tax contributions to a Roth 403(b).
Information and booklets describing the retirement program are available and Human Resources can assist in establishing an account. Representatives from TIAA/CREF and Fidelity are on campus frequently for group and individual meetings.