Purpose
The College's retirement savings plan (the “Plan”) is a defined contribution tax deferred annuity plan, set up under Internal Revenue Service Code 403(b), with its plan year beginning on July 1 each year and ending on June 30. It is mandatory, both as a condition of employment, and as required by the Plan, that all eligible employees participate in the Plan, including through employer contributions. This policy provides additional details and information about the Plan.
Scope
This policy applies to eligible College employees.
Policy
To be eligible for self-participation in the Plan, employees must fulfill the following requirements:
- Be twenty-one (21) years of age
To be eligible for College contribution*, employees must fulfill the following requirements:
- Complete one (1) year of employment with the College;
- Be twenty-one (21) years of age; and
- Work at least one thousand (1,000 hours[1]) or more per Plan year.
The first contribution will occur on the first pay period of the next quarter after the year of service is completed (1/1, 4/1, 7/1, 10/1).
For full Plan details, employees should contact the Payroll Department.
College Contributions
At its discretion, the College may contribute a certain percentage of annual eligible wages to the each employee’s Plan account. This amount is determined annually by the Board of Trustees and will be announced at the beginning of each Plan year on July 1. Employees who began employment at the College on June 30, 2000, or before are fully vested in the plan upon entrance. Employees who began employment at the College on July 1, 2000, or later, vest 20% of the amount contributed by the College to their account during the first year in the Plan, and an additional 20% in each year of eligible service thereafter. Employees hired after July 1, 2000 are fully vested in their Plan account after 6 full years of continuous employment.
Employee Elective Contributions
It is not mandatory that an employee contribute to their retirement plan. However, for retirement purposes, employees may elect to contribute up to a certain maximum percentage of their annual wages (excluding the College's contribution). The elective maximum percentage allowed is controlled by Internal Revenue Service regulations. Contact the Payroll Office for further details.
Retirement Plan Questions
All questions regarding the retirement plan should be directed to the Payroll Office or to the College's Plan record-keeper. After an employee is enrolled in the Plan, they will have access to the Summary Plan Description booklet on the TransAmerica site, which contains complete details of the Plan.
Separation from Employment
When an employee separates from employment with the College, they should contact the Payroll Office to complete appropriate forms for options regarding funds contributed on their behalf by the College, as well as their own elective contributions.