The BU Retirement Savings Program
|Please Note – All University contributions to the BU Retirement Plan will be suspended during Fiscal Year 2021, which occurs from July 1, 2020 through June 30, 2021. Employment during this time, however, will continue to count towards the two year waiting period.|
The BU Retirement Savings Program – Understanding the Contributions
The BU Retirement Savings Program – Understanding the Investment Options
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.
Your retirement benefits include a set of plans collectively called the BU Retirement Savings Program:
The BU Retirement Plan, for University contributions only
The Supplemental Retirement & Savings Plan, for your contributions only
The 457(b) Savings Plan, for additional tax-deferred contributions for highly paid faculty and staff
Each of these plans is described in subsequent sections of this site.
Features of the BU Retirement Savings Program include:
- Automatic enrollment for all eligible faculty and staff
- Boston University automatic core contributions that require no employee contribution
- Boston University matching contributions dollar-for-dollar up to 3%
Integration Level: $61,500
For 2020, the integration level is $61,500 for the University core contributions. This value is adjusted each calendar year based on the Wage Base increase or the Consumer Price Index (wages) increase, whichever is smaller.
Here’s how it works: Let’s say you are 50 years old and earn $75,000. Assuming you contribute at least 3% to the Supplemental Retirement & Savings Plan, you will receive a 10% contribution from the University for the first $61,500 you earn ($6,150). For the remaining $13,500 in earnings above $61,500, you will receive a 12% contribution ($1,620). In this example, your total contribution from BU would be $7,770.
The BU Retirement Savings Program At-a-Glance
|Employee contributions||You are automatically enrolled roughly 30 days following your date of hire at a 3% contribution (you may lower percentage or opt out)|
|BU contributions||You are automatically enrolled in the core and matching contributions after 2 years of eligible service|
contribution to receive
University core contribution
|University core contribution||Less than age 45||4% 1st $61,500 + 6% over $61,500|
|Age 45-49||6% 1st $61,500 + 8% over $61,500|
|Age 50 and above||7% 1st $61,500 + 9% over $61,500|
|Total University contribution
if employee contributes 3% and receives the 3% BU matching contribution
|Less than age 45||7% 1st $61,500 + 9% over $61,500|
|Age 45-49||9% 1st $61,500 + 11% over $61,500|
|Age 50 and above||10% 1st $61,500 + 12% over $61,500|