Regardless of your age, the time to think about retirement is now. With careful planning, you can help make your retirement years a more comfortable and secure time of life for you—and your family.
Once you have completed the necessary service requirement, the Boston University Retirement Plan provides you with an opportunity to set aside money for your retirement. If you make the required participant contributions to the plan, the University more than matches that contribution. Both your contributions and the University’s may be invested in any of the following investment vehicles: guaranteed and variable annuity accounts through the Teachers Insurance and Annuity Association (TIAA) and the College Retirement Equities Fund (CREF), or mutual funds administered through Fidelity Investments (Fidelity).
You can choose to pay no income tax on the money you contribute to the plan until withdrawal. The University’s contributions are not taxable to you when made. In addition, investment earnings accumulate tax free until withdrawal.
Alternatively, your contributions to the plan may be made as Roth contributions, on an after-tax basis, through Fidelity Investments only. If you make Roth contributions, your investment earnings will accumulate tax free and will be considered tax free at the time of withdrawal as long as your withdrawal is qualified. The University’s contributions will be considered taxable income to you at the time of withdrawal regardless of whether you make before-tax or Roth contributions.
Your Retirement Plan income, together with your Social Security benefits and personal assets, are intended to give you the financial security you will need during your retirement years. You may also increase your retirement savings by making contributions to the Supplemental Retirement & Savings Plan.
If you are classified by the University as an employee (other than a student), have a normal work schedule of at least 50% of a full-time schedule, and have an appointment of nine months or more duration, you may participate in the Boston University Retirement Plan.
As an eligible employee, you can participate in the plan beginning on the first day of the month in which you complete two years of service with the University. A year of service is a 12-month period in which you complete at least 1,000 hours of service.
Any prior eligible service will be applied toward your two-year waiting period. These provisions apply only to the eligibility waiting period.