The transition contribution provides up to 1% annually for employees with eligible compensation of less than $180,000 who meet these two criteria:
- Attained age 50 or older as of December 31, 2017, AND
- Were enrolled in the Boston University Retirement Plan as of December 31, 2017
An employee is no longer eligible to receive the transition contribution if his or her eligible compensation exceeds $180,000 at any time after January 1, 2018.
About the Transition Contribution
In direct response to feedback received from employees, BU provides additional contributions for eligible employees to help ease the transition to the new retirement plan design that took effect January 1, 2018.
BU’s annual transition contribution equals up to 1% of an eligible employee’s pay, and is in addition to the BU core and matching contributions. The total of the BU core and transition contributions to the plan may not exceed $14,868 a year.
This means eligible employees will receive an additional 1% contribution from the University except when the sum of the core and transition contributions exceeds $14,868. In this case the transition contribution will be an amount equal to less than 1% of eligible salary so that the sum of the core and transition contributions is equal to $14,868.
If you were age 50 or older as of December 31, 2017, and meet the transition contribution eligibility requirements, the following contributions will be made to your BU Retirement Plan account:
BU Retirement Plan Contributions (Age 50 or Above)
|Eligibility||As of December 31, 2017:
Eligible compensation below $180,000 per year
| Core Contribution*
(Automatic; based on age and salary)
|7% on first $66,600 and 9% over $66,600|
| Matching Contribution
(Assumes you contribute at least 3% to the Supplemental Retirement & Savings Plan)
|Dollar-for-dollar, up to 3%|
|Transition Contribution||As of December 31, 2017:
Up to 1% on eligible compensation below $180,000 per year*
|Total Potential BU Contribution||11% on first $66,600 and 13% over $66,600|
* BU core and transition contributions cannot exceed $14,868 annually.
Employees will receive the annual transition contribution at the beginning of each year for plan participation in the prior year. The transition contribution will be made in January 2023 for 2022 plan participation. Those who receive the contribution will see a notation in their pay statements when the contribution is made.