OM 8.1.5 Pension Plans

Applies To:

Exempt or Non-Exempt, Full-time or Part-time Employees in a regular positionor andgrant forfunded somepositions.

temporary

Excluded positionsEmployees: ifVisitors, vestingAdjuncts, criteriaStudents, isPer met.Diem, Third-party Vendors

Table of Contents:

1. Purpose
2. Summary
3. Definitions
4. ProceduresProcedure
   

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) defined contribution retirement plan and eligible employees will be automatically enrolled in the mandatory pensionretirement after the completion of twoone years(1) year of service for non-collective bargained (non-union) employees or two (2) years for collectively bargained (union) employees or if the plan policy vesting criteria is met. Voluntary pre-tax or Roth postpost-tax salary deferral contributions are also available (no university match). 

Definition of Terms:

Mandatory Pension:403(b) Defined Contribution Retirement:Automatically Participation automatically begins after the completion of one (1) year of service for non-collective bargained (non-union)  employees or two (2) years of service.service Employeesfor collectively bargained (union) employees . Both the employee and employer contribute a setmandatory, percentagefixed and the University contributes a match(non-changeable) percentage of the employee’s regular salarybi-weekly bi-weekly.salary.

Voluntary Contribution: Employees can contribute an additional percentage or dollar amount within the annual IRS limits. The

University

does
• Voluntary notelective match(pre-tax) voluntarycontributions
contributions.
• Roth (after-tax) contributions

403(b) Defined Contribution Retirement Plan: Retirement plan for higher education institutions that allow employees 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

Temporaryin Positions: Exemptregular or Non-Exempt,grant Full-timefunded or Part-time Employeespositions.

• 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
Diem, Third-party Vendors

• Visiting Faculty - Time served under a visiting faculty appointment will count toward the mandatory year of service requirement if the individual is hired into a permanent position immediately following the visiting contract.

Mandatory Pension403(b) Defined Contribution Retirement Plan (Effective March 1, 2026)

Non-collectively Bargaining (Non-Union) Employees:

• Begins on the first of the month following the completion of twoone years(1) year of service.

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

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

  • Clarkson match contribution will be 9.6% of regular biweekly salary

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

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

  • Clarkson matchClarkson’s 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

    • This University’s contribution percentage is subject to change based on institutional financial conditions and Board of Trustee approval. 

ClarksonCollectively matchesBargaining (Union) Employees:

• Begins on the contributionfirst atof the month following the completion of two (2) years of service.
  • Employees contribute 4.8% of regular bi-weekly salary

  • Clarkson’s

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

    • Employees contribution will increase to 4.8%9.6% of regular bi-weekly salary

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

  Automatic Enrollment:

  • The first of the month following the completion of the waiting period.
  • Employees

    Years of service mustwill be continuous.

    notified by Human Resources one month prior to the start date with the following information.
    • Qualified Default Investment Alternative (QDIA) Initial Notice
    • Current Year’s Default Lifecycle Funds

  Reemployment within a one-one (1) 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. 

      enrolled.

    • Non-vested participants' previous years of service will count towards the two-one (1) year waiting periodperiod.

    and mandatory
    • Mandatory contributions will begin onceafter two-the completion of one (1) year of service for non-collective employees and two (2) years of service isfor completed.
      collectively
    bargained
    employees.  

  Reemployment after a one-one (1) 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.

      enrolled.

    • Non-vested participants' previous years of service will NOT count and the two-year waiting period begins with the new date of hirehire.

    and mandatory
    • Mandatory contributions will begin after the completion of two-one (1) year of service for non-collective employees and two (2) years of service.
      service for collectively bargained employees. 

  • Waiting Period Waiver Form: 

    New employees whose previous employer was in higher education and they were vested in that previous employers’ plan can submit a waiver form for review and approval which allows the University to waive the two-one (1) year waitingof periodservice for non-collective employees and two (2) years of service for collectively bargained employees and enroll the new employee into the mandatory pension403(b)defined annuitycontribution retirement plan. 

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

  • Employees will be notified by Human Resources one month prior to the start date with the following information.

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

    • Annual Lifecycle Funds

  Voluntary ContributionsContributions:

  • The mandatory and voluntary contributions are maintained in separate accounts.
  • SupplementalVoluntary Pre-taxelective Contributions(pre-tax) contributions – There are no federal or state income taxes on the before-tax money contributed into a supplemental plan and are referred to as tax-deferred contributions.
  • Roth Post-tax(after-tax) Contributionscontributions – 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 pensionTIAA provider website. www.tiaa.org/clarkson
    • Create a personal profile account.
    • View, elect contribution amount or make changes to existing contributions.  
    • 
      Contact theTIAA pensioncustomer planservice provider800-842-2252 directlyor byto callingschedule an appointment 800-732-8353.

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

  Contribution Limits

  • IRS issued annually – IRS Contribution Limits

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

  Departing the UniversityUniversity:

  • All University mandatory and voluntary contributions to your TIAA account will cease on your last day worked.  The account itself remains intact unless you choose to take a distribution or rollover to another qualified plan.  You can continue to manage your account through a TIAA representative by calling 1-800-732-8353842-2252 or by logging into your account www.tiaa.org/clarksonclarkson..

  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
  February 2026 changes include updated title, contribution amounts, waiting period requirements effective 3/1/26.
  

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