OM 8.1.5 Pension Plans

PolicyApplies To:

MandatoryExempt participationor Non-Exempt, Full-time or Part-time Employees in a regular position and for some temporary positions if vesting criteria is requiredmet.

Table of Contents:

Purpose Summary Definitions Procedures

Policy Purpose:

The University understands the importance of future financial planning and offering resources to navigate the process. 

Policy Statement:

The University has a 403(b) plan and eligible employees will be automatically enrolled in the mandatory pension after the completion of two years of full-time service ator if the plan policy vesting criteria is met. Voluntary pre-tax or Roth post salary deferral contributions are also available (no university match). 

Definition of Terms:

Mandatory Pension: Automatically begins after the completion of two years of service. Employees contribute a set percentage and the University contributes a match percentage of regular salary bi-weekly.

Voluntary Contribution: Employees can contribute an institutionadditional ofpercentage higheror education.dollar Verificationamount ofwithin previousthe annual IRS limits. The University does not match voluntary contributions.

403(b) Plan: Retirement plan for higher education employmentinstitutions isthat required.allow Employees are requiredemployees to contribute some of their salary to the plan and the employer may also contribute to the employees’ plan.

Procedures:

Eligible Employees: 

Regular Positions:  Exempt or Non-Exempt, Full-time or Part-time Employees

Temporary Positions: Exempt or Non-Exempt, Full-time or Part-time Employees

ONLY if vesting criteria is met:

Full-time must work 1000 or more hours for two consecutive years Part-time must work 500 or more hours for two consecutive years

Eligible to make voluntary contributions ONLY

Excluded Employees: Visitors, Adjuncts, Students, Per Diem

Mandatory Pension

Begins on the first of the month following the completion of two years of service.

Hired on or before 11/30/2024 contributions will be:

Employees contribution will be  4.8% of regular salary,bi-weekly whilesalary

the University

Clarkson match contribution will equalbe 9.6% of theirregular biweekly salary

Non-Collective Bargaining Employees regardless of start date contributions will be:

Employees contribution will be  4.8% of regular salary.bi-weekly salary

Clarkson match contribution will be 9.6% of regular biweekly salary

Hired on or after 12/1/2024 (less than eight (8) years of service) contributions will be:

Employees contribute 2.4% of regular bi-weekly salary 

Clarkson matches the contribution at 4.8% of regular bi-weekly salary

 Once an employee reaches their eighth (8) year of service contributions will increase to:

Employees contribution will increase to 4.8% of regular bi-weekly salary

Clarkson match contribution will increase to 9.6% of regular biweekly salary

 

Years of service must be continuous.

Reemployment within a one-year break in service:

Vested participants prior to departure will be re-enrolled into the mandatory pension under the new plan effective 12/1/2024. 

Non-vested participants' previous years of service will count towards the two-year waiting period and mandatory contributions will begin once two-years of service is completed.

Reemployment after a one-year break in service:

Vested participants prior to departure will be re-enrolled into the mandatory pension under the new plan effective 12/1/2024.

Non-vested participants' previous years of service will NOT count and the two-year waiting period begins with the new date of hire and mandatory contributions will begin after the completion of two-years of service.

Waiver Form: New employees whose previous employer was in higher education and vested in that previous employers’ plan can submit a waiver form for review and approval which allows the University to waive the two-year waiting period and enroll the new employee into the mandatory pension annuity plan. 

Automatic Enrollment for eligible employees upon completion of two-years of service.

Employees will be notified by the Human Resources Officeone whenmonth theyprior to the start date with the following information.

Qualified Default Investment Alternative (QDIA) with Automatic Enrollment Initial Notice. 

Annual Lifecycle Funds

Voluntary Contributions

Supplemental Pre-tax Contributions – There are pensionno eligible.federal Itor isstate thenincome theirtaxes responsibilityon the before-tax money contributed into a supplemental plan and are referred to completeas anytax-deferred requiredcontributions. formsRoth neededPost-tax Contributions – These are contributions made with money that has been taxed prior to contributing into a Roth.

Steps to set up a voluntary contribution:

Login to the pension provider website. www.tiaa.org/clarkson Create a personal profile account. View, elect contribution amount or make changes to existing contributions.   Contact the pension plan provider directly by TIAA.calling Representatives800-732-8353. from

Funds are remitted to the TIAA visitbi-weekly following each payroll. 

Contribution Limits

IRS issued annually – IRS Contribution Limits

For more information visit: IRS.Gov/Retirement Plans. 

Departing the campusUniversity

All University mandatory and voluntary contributions to your TIAA account will cease on ayour regularlast basisday forworked.  enrollmentThe ofaccount newlyitself eligibleremains participantsintact andunless investmentyou strategies for current participants.

backchoose to toptake a distribution or rollover to another qualified plan.   You can continue to manage your account through a TIAA representative by calling 1-800-732-8353 or www.tiaa.org/clarkson.

Related Information:

Clarkson University - TIAA Plan Policy

History

Revised January 1986

Revised December 1986

Editorial Revision July 1989

Editorial Revision August 1996

Revised July 1997

Editorial Revision May 2008

Section Renumbered & Revised July 2011

Section Renumbered July 2012

Editorial Revision, December 2019

Title revision, Aug 2023
Combining OM 8.1.4 and OM 8.1.5 into one policy OM 8.1.4. Added clarification and updated incorrect information September 2024
Updated title September 2024

 

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