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OM 8.1.5 Pension Plans

About This Policy

Effective Date: March 1, 2026
Last Updated: March 5, 2026
Responsible University Office: Human Resources
Responsible University Administrator: Vice President of Human Resources

Policy Contact:

Human Resources
clarksonhr@clarkson.edu

Applies To:

Exempt or Non-Exempt, Full-time or Part-time Employees in regular or grant funded positions.

Excluded Employees: Visitors, Adjuncts, Students, Per Diem, Third-party Vendors

Table of Contents:

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

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 retirement after the completion of one (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 post-tax salary deferral contributions are also available (no university match). 

Definition of Terms:

Mandatory 403(b) Defined Contribution Retirement: 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 for collectively bargained (union) employees . Both the employee and employer contribute a mandatory, fixed (non-changeable) percentage of the employee’s regular bi-weekly salary.

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

  • Voluntary elective (pre-tax) 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: 

Exempt or Non-Exempt, Full-time or Part-time Employees in regular or grant funded positions.

Excluded Employees: Visitors, Adjuncts, Students, Per 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 403(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 one (1) year of service.
    • Employees contribute 4.8% of regular bi-weekly salary
    • Clarkson’s contribution of 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. 

Collectively Bargaining (Union) Employees:

  • Begins on the first of the month following the completion of two (2) years of service.
    • Employees contribute 4.8% of regular bi-weekly salary
    • Clarkson’s contribution of 9.6% of regular bi-weekly salary

Automatic Enrollment:

  • The first of the month following the completion of the waiting period.
  • Employees will be 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 (1) year break in service:

  • Vested participants prior to departure will be re-enrolled.
  • Non-vested participants' previous years of service will count towards the one (1) year waiting period.
  • Mandatory contributions will begin after the completion of one (1) year of service for non-collective employees and two (2) years of service for collectively bargained employees.  

Reemployment after a one (1) year break in service:

  • Vested participants prior to departure will be re-enrolled.
  • Non-vested participants' previous years of service will NOT count and the waiting period begins with the new date of hire.
  • Mandatory contributions will begin after the completion of one (1) year of service for non-collective employees and two (2) years of 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 one (1) year of service for non-collective employees and two (2) years of service for collectively bargained employees and enroll the new employee into the mandatory 403(b)defined contribution retirement plan. 

Voluntary Contributions:

  • The mandatory and voluntary contributions are maintained in separate accounts.
  • Voluntary elective (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 (after-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 TIAA provider website. www.tiaa.org/clarkson
    • Create a personal profile account.
    • View, elect contribution amount or make changes to existing contributions.  
      Contact TIAA customer service 800-842-2252 or to schedule an appointment 800-732-8353.

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

Contribution Limits

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

Departing the University:

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 1-800-842-2252 or by logging into your account www.tiaa.org/clarkson.

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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