The Boston University Plan 1965
If you participated in the Boston University Retirement Plan 1965 and did not choose the new plan formula which was effective on January 1, 1987, you will continue to contribute each payroll period at the rate of 3% of the first $7,800 of your base salary each year and 5% of your base salary above $7,800.
The University will contribute as follows:
When Your Age Is…
The University Contributes…
|Under 45||5% of the first $7,800 of base salary PLUS 7% of your base salary above $7,800|
|45 through 49||7% of the first $7,800 of base salary PLUS 10% of your base salary above $7,800|
|50 and above||7.3% of the first $7,800 of base salary PLUS 13% of your base salary above $7,800|
You may file an election to switch to the new contribution formula effective with the beginning of any calendar year. Once you do so, you may not go back to the old (1965) contribution formula again.
Whether you are better off remaining under the 1965 formula or switching to the new formula will depend on your personal circumstances. You should assess your situation each year prior to January 1, when you can switch to the new plan formula. To help you with your decision, Human Resources can provide the integration level for the coming calendar year and can inform you what the contribution rates would be for the year under the 1965 formula or the new formula, based on your current base salary.