ÌÇÐÄvlog¹ÙÍø

Retirement Benefits

It’s never too soon – or too late – to start planning for retirement. ÌÇÐÄvlog¹ÙÍø realizes the importance of saving for the future, and the University’s 403(b) Retirement Plan can help provide income during retirement years.

Eligibility

There is a one-year waiting period for enrollment in the defined contribution retirement plan, along with meeting the requirements of the plan. This waiting period may be satisfied by a year of service at another credited college or university. A year of service is defined as a continuous 12-month period of service (or academic year for faculty) in which an employee is credited with 1,000 or more hours of service. Please refer to the Summary Plan Description for more information. 

Defined Contribution Retirement Plan Summary Plan Description

Investment Options

An important step in planning for retirement is to establish investment goals and select investment choices to match those goals. Those goals may change over time, so it’s important to periodically reevaluate investment choices

ÌÇÐÄvlog¹ÙÍø employees can set up retirement accounts with Fidelity or TIAA.

If no investment option is selected, employees are automatically enrolled in the T. Rowe investment option for the year they turn 65.

Fidelity Investments

To schedule an appointment with Fidelity, call 1-800-642-7131 or visit . 

TIAA

To schedule an appointment with TIAA, call 1-800-732-8353 or visit tiaa.org/schedulenow.

Employees will need to create an account under both the Defined Contribution Retirement Plan (employer and Mandatory) tab as well as the ÌÇÐÄvlog¹ÙÍø Defined Contribution Retirement Plan (Employee Voluntary) tab. 

Faculty and Staff (except for Local SEIU Facilities Union)

University Contributions

The University will contribute:

  • Less than 52 years of age: 5 percent of the employee’s accumulated year-to-date base salary up to $126,100 and 10 percent over $126,100
  • 52 years of age and older: 7 percent of accumulated year-to-date salary up to $126,100 and 12.7 percent over $126,100

The maximum base salary eligible for contributions is $360,000. The base salary may change each year based on the Social Security taxable wage base.

Voluntary Contributions

If employees voluntarily contribute an additional amount of their pay, the University will match up to 4%. Changes to voluntary contributions may be made at any time.

Matching Contributions Guide

  • Employee Contribution     University Matching Contribution
    • 1% salary                             1.5% match
    • 2% salary                             3% match
    • 3% salary                             3.5% match
    • 4% or more of salary            4% match
       

Local 200 SEIU - Facilities

The University will contribute an amount equal to 8% of an employee’s base annual salary. The employee is required to contribute at least 2%. 

Employees ages 52 and older who contribute at least 3% will receive a 10% contribution from the University.

Employees can complete the Salary Reduction Agreement to change their personal contributions

Retirement Salary Reduction Agreement Form

 

Faculty Phased Retirement Program

ÌÇÐÄvlog¹ÙÍø’s Voluntary Phased Retirement Program allows eligible faculty members (tenure-stream teaching faculty—full-time and Category I) to move by one intermediate step into normal retirement through the reduction of teaching obligations and salary for a fixed period of time.

Program Details

Specification of program

  • Teaching expectations and salary reduction
    The faculty member teaches two courses each year and performs a minimum of 102 hours of other scholarly and non-teaching obligations, e.g., advising, scholarship, and committee service to the department or university, for which they receive 50% of their annual salary. During the phased-retirement period, a faculty member’s salary continues to be adjusted through the normal process of setting faculty salaries. The person entering phased retirement may continue to fully participate in department activities if they wish, with the exception that they do not participate in any aspect of the faculty hiring process. A new tenure stream replacement will have first priority for teaching elective or other courses when teaching interests overlap.
  • Duration
    Maximum of three years (shorter periods may be elected with the approval of the Dean of the Faculty)
  • Required ending
    In entering this program, a faculty member commits to retire at the end of the three-year period; continuous tenure is relinquished, and emeritus/a status conferred at the time of retirement; elections to enter the program are irrevocable.
  • Hire overlap
    With a 50% salary savings, replacement junior faculty may be hired prior to completion of the phased retirement period; as in all cases of replacement hires, these positions are allocated by DAC and are not guaranteed to the department or program of the phased retiree.
  • Minimum age
    Faculty are eligible to enter phased retirement at age 60.
  • Minimum length of service
    None is required. However, ÌÇÐÄvlog¹ÙÍø does have minimum-service-length requirements for retirement with benefits1 which needs to be satisfied in order to receive normal retirement benefits following the phased retirement period. Retirement with benefits can occur at age 65 with 10 years of service or at 62 with 15 years. Time in service accrues at the rate of ½ year per year served in the phased retirement program.
  • Provision of office and/or lab space
    Retiring faculty will have access to office and/or lab space depending on availability; space may not necessarily be in the home department and may be shared; junior faculty will receive preference for office space in the departmental area.
  • Sabbatical accumulation
    Because the faculty member is teaching less than half time for half-time salary, there is no accumulation of SLA credits in phased retirement.
  • SLA use
    Accumulated SLA credits may be used to decrease teaching load during phased retirement, scheduled via negotiation with the department chair and Dean of Faculty; they cannot be employed to increase salary beyond 50%.
  • Institutional support for research and travel
    Support continues in full according to the usual policies.
  • One or both semesters
    The faculty member may choose to teach the two required courses in either one semester or two; the salary payment schedule will reflect this choice.
  • Option to take on other (external) commitments
    Allowed, with approval of the Dean of Faculty for the semester(s) the faculty member is on campus and teaching; approval is not needed for non-teaching semesters.
  • Endowed chair-holders
    If there are no provisions to allow naming of a second chair holder during the phased retirement period a faculty member will need to relinquish their chair; in the event of a chair being relinquished, emeritus/a status in the chair can be conferred immediately if the individual desires and research stipends attached to the chair will continue in full through the phased retirement period; any course releases associated with distinguished chairs do not apply during a period of phased retirement.
  • Dean of Faculty approval is required
    Approval is required for a faculty member to enter the phased requirement program; while all applications from eligible faculty members will be approved, ÌÇÐÄvlog¹ÙÍø reserves the right to require an employee to defer their requested entry to the phased retirement program if there are multiple requests within the same department or if other operating situations within a department or program so require.

Other Information

  • Benefits continue throughout the phased retirement period: health, dental and tuition benefit2 are fully covered; pension contributions, disability coverage and life insurance continue based on base salary paid3.
  • It is possible for retirement savings withdrawals to commence during the phased retirement period; it is recommended that the advice of a financial planner be obtained.
  • Information concerning this program will be available on the Dean of Faculty web page.
  • Teaching faculty members interested in the program should proceed by contacting the Dean of the Faculty, preferably at least one year prior to the requested start date of phased retirement. The Dean will notify the relevant division director and department chair and/or program directors of the request; formal application is by way of the form appended at the end of this document.
  • ÌÇÐÄvlog¹ÙÍø reserves the right to amend or terminate this program at any time, but such changes will not affect the agreements with faculty members then enrolled in the phased retirement program.

Application

  • Please contact Diane Beach (dbeach@colgate.edu) to begin the application process or to learn more about the program.

Footnotes

  1. Retirement with benefits can occur at age 65 with 10 years of service or at 62 with 15 years. Time in service accrues at the rate of one half (1/2) year per year served in the phased retirement program.
  2. Eligibility for the higher education tuition benefit (7 years of full-time service) must be established prior to initiation of phased retirement.
  3. Coverage and benefits will be subject to the terms and conditions of these separate plans, which also may be amended or terminated at any time.

Retirement Healthcare Savings for Employees Hired After July 1, 2012

Emeriti Retiree Health Savings Plan is a way to help ÌÇÐÄvlog¹ÙÍø employees pay for healthcare expenses in retirement. As we get older, healthcare costs are likely to take up a larger portion of our budget, and Medicare may not cover everything.

The healthcare savings plan complements the University’s retirement offerings and provides a number of tax advantages. 

This account is funded with tax-free employer contributions and should you choose to contribute, your voluntary after-tax contributions. The money is invested in a mutual fund and can be used for qualified medical expenses, including health insurance premiums, deductibles and copays; prescription drug costs; Medicare and long-term care premiums.

Emeriti Plan Highlights             Emeriti Retiree Health Plan Annual Report

Questions

If you have other retirement questions, contact Human Resources at benefits@colgate.edu or 315-228-7565.