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Human Resources » Benefits Information
Center » Defined
Contribution Retirement Plan
General
Information
The University Retirement Plan
is comprised of two components: the Group Retirement Plan
and the Supplemental Retirement Plan.
Under
the Group Retirement Plan employees are eligible to participate
upon completion of one (1) year of eligible service in a
benefit eligible position at a minimum of twenty (20) hours
per week. A year of eligible service includes immediate prior
service at a non-profit, tax-exempt institution of higher
education. Employees must complete the required application
form in order to begin participation.
Once
enrolled, the University contributes a percentage of the
employee's salary to their account. This percentage is determined
by the administration of the University. Employees should
see Human Resources for the Group Retirement investment options.
All
contributions to the Group Retirement Plan are fully vested
(owned) by the employee immediately. The accumulations are
not accessible to employees while they are still working
at Northwestern. However, upon retirement or termination
of employment, several distribution options will be available.
Under
the Supplemental Retirement Plan employees may participate
immediately upon starting employment in a benefit eligible
position. This plan allows employees to contribute a portion
of their salary on a pre-tax basis to their retirement plan.
Contributions are made on a tax-deferred basis for federal
and state income tax purposes.
The
same investment options available for the Group Retirement
Plan are available for this plan. Accumulations in the
employee's supplemental accounts are generally not accessible
before age 59½ except in case of death, disability,
termination of employment or hardship as defined by IRS regulations. In certain situations (determined by
IRS regulations) loans may be taken out against an employee's
supplemental retirement account.
If
an employee dies before retirement, the full current value
of their accumulations in their retirement plan are payable
to their designated beneficiary.
Further details regarding these
Plans may be found in the Summary
Plan Description (SPD), which is also available in Human Resources.
FAQs
Q: When do
I need to enroll in a 403b plan?
A:
You are eligible to start setting aside funds immediately!
Q: How much
does the University match and when does matching begin?
A: The University will begin their contribution
following one (1) year of benefit eligible status.
Currently, the University contributes an amount equal
to 6.5% of your salary. This amount may vary from
year-to-year. Lisa Franczak
@ Human Resource will contact you with the
applicable information before your one-year anniversary.
Please note that the University will not contribute
the 6.5% until you return the necessary forms! The
University contribution is not a matching contribution.
You do not need to contribute on your own in order
to receive the University contribution.
Q: When do
I become fully vested in my retirement funds?
A:
You are 100% vested as soon as funds are put into your account.
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