The University's 403(b) Defined Contribution Retirement Plan is an important part of your total compensation, the more you know about the plan the better you can take advantage of all it has to offer.
403(b) Defined Contribution Retirement Plan
In these difficult economic times, all of us would agree that saving for retirement can be difficult - it takes planning and discipline. The Pace University 403 (b) Defined Contribution Retirement Plan is designed to provide faculty and staff with the opportunity to accumulate a source of retirement income in addition to Social Security and personal savings on a tax-deferred basis.
TIAA-CREF is the sole plan service provider for the Pace University 403(b) Retirement Plan. The Pace University Retirement Program allows you to electively defer monies from your payroll check on a tax-deferred basis, and if eligible University contributions, into the 403(b) plan. TIAA-CREF is the sole plan service provider of the Pace University Retirement Plan, effective January 1, 2011.
|Investment Carrier||Website||Telephone Number|
The Plan is a defined contribution plan in which specific contributions are made by the employee and the University once eligibility requirements are met. The requirements are based upon age and full time service criteria.
Eligibility for Employee Contribution
All employees are eligible to contribute to the plan except for students, visiting faculty and those deemed to be independent contractors. Simply complete a Salary Reduction Agreement Form, and return it to the University Benefits at email@example.com (or via the helpdesk at at https://help.pace.edu). For employees joining for the first time, please see the bottom of the form for instructions on setting up an account with TIAA-CREF.
Eligibility for University Contribution
All full time employees who meet the following age and full-time criteria are eligible to join the Plan:
|21-25 years||2 years|
|26 + years||1 year|
Once you meet the eligibility requirements and have completed the necessary enrollment forms, the University will contribute a percentage of your base salary, up to $255,000 effective January 1, 2014. You will also be required to make contributions, which will be on a tax-deferred basis.
The percentages that you and the University contribute will differ based upon your full time date of employment and years of service with the University.
Eligibility Criteria may be waived or credited upon establishing service requirements stated above at another institution of higher education or 501(c)3 organization. Employment with the former institution, organization must be within three years of employment with Pace.
You must complete the necessary enrollment and payroll authorization forms to participate in the retirement program. Any contributions that you make are tax deferred and are subject to a statutory IRS annual limit.
Once you join the retirement plan, your contributions will continue and roll-over from year to year.
You decide how to allocate the investment of both your required contributions and those made on behalf of the University. Any changes to your investment strategies can be addressed directly with your investment carrier.
Contributions are expressed as a percentage of pay and made on a pre-tax basis by payroll deduction only. Federal law limits the total amount a participant can contribute in one year to all Retirement Savings Plans (such as this plan and other 403(b) plans offering tax-deferred annuities), depending on your age and; in some cases, years of service to your employer.
Year Employee Contribution Limit Additional Age 50 Catch-up Limit
2014 $17,500 $5,500
* Each year in October these limits are adjusted by the IRS according to a formula based on inflation rate (linked to "COLA") in the third quarter vs the previous year's quarter.
The Pace University Retirement Plan accepts both employee and employer contributions:
1. University Contributions: For required contributions made by the University.
2. Employee Contributions: For additional voluntary contributions made by the Employee.
The following depict the contribution schedules available under the Pace University Retirement Plan:
For Employees hired prior to October 2, 2000:
|ServisEServicdedkafjdf;ldfddfadfdfdffdfdfadfasdfasdfasdfsdfddfdService||Employer Per Payroll Contribution||Employee Required Per Payroll Contribution||Contribution Investment Options|
|0-9 Years||5%||5%||TIAA-CREF (Fidelity - Inactive)|
|10-19 Years||10%||0%||TIAA-CREF (Fidelity - Inactive)|
|20+ Years||12%||0%||TIAA-CREF (Fidelity & TRP Inactive)|
For Employees hired or rehired on or after October 2, 2000:
|Service||Employer Per Payroll Contribution||Employee Required Per Payroll Contribution||Contribution Investment Options|
As required by the Department of Labor, please see the 2012 Summary Annual Reports (SAR) for the Pace University Defined Contribution Retirement Plan.