Contributions to the Retirement Plan
Under the formula effective January 1, 1987, you contribute 3% of your base salary each payroll period. The University contributes an amount each payroll period equal to a percentage of your base salary. The percentage varies according to your age:
|When Your Age Is…||The University Contributes…|
|Under 45||5% of your base salary up to the integration level PLUS 10% of your base salary above the integration level|
|45 through 49||7% of your base salary up to the integration level PLUS 12% of your base salary above the integration level|
|50 and above||9% of your base salary up to the integration level PLUS 14% of your base salary above the integration level|
For Retirement Plan purposes, you should be familiar with the following terms:
Base Salary – This amount is your base pay from the University including, if applicable, any stipend or other payments coded for payroll purposes as benefits-based overbase opayments, excluding overtime, one-time payments, other overbase payments, commissions and bonuses, or the value of any employee benefits. Base salary amounts contributed under a pay contribution agreement to a 403(b) plan or to the Flexible Benefits Program or for pre-tax transportation benefits will be included in base salary for Retirement Plan purposes.
The tax laws have a maximum limit on the annual amount of compensation that a retirement plan may take into account for contribution purposes. This limit for 2014 is $260,000.
Integration Level – This amount is $36,300 for 2014. It is adjusted each calendar year based on the Wage Base Increase calculated for purposes of the Social Security law, or the increase in the Consumer Price Index (Wages), whichever is smaller.
An adjustment in the University’s contribution percentage based on a change in your age is made at the beginning of the month in which you attain the new age.