Defined Contribution Retirement Plan-403(b)

 

Agnes Scott College has established a 403(b) Defined Contribution Retirement Plan to assist employees in saving for retirement.

Full-time and half-time employees who complete at least 1,000 continuous work hours each year are required to participate in the Agnes Scott College 403(b) Defined Contribution Retirement Plan. Participation begins (for those working 1,000 hours or more) after the employee has completed one year of service to the College. The plan is provided through Teachers Insurance Annuity Association (TIAA).

Eligible employees are required, as a condition of employment, to contribute 3.5 percent of their salary to the Plan. The college will make an employer contribution equal to 7% of their compensation to the Plan on your behalf.

Employees may contribute on a tax-sheltered (salary-reduction) basis or on a regular after-tax deduction basis. After two years of service, the employee will be fully vested in the College's contributions and their earnings. If the employee dies or becomes totally disabled before retirement and has not yet attained two years of service, they are automatically vested. Employees are immediately vested in their own contributions to the plan.

A variety of investment options are available. Allocations can be changed at any time by calling TIAA at 800 842-2252, or logging on their web site: http://www.tiaa.org.

Employees may choose to make additional contributions to the Defined Contribution Retirement Plan that are not matched by the College, or contribute to a Tax-Deferred Annuity (TDA) Plan, also known as a Supplemental Retirement Annuity (SRA) fund. Additional contributions are subject to Internal Revenue Service (IRS) regulations. Reduction and contribution maximums are subject to IRS Code Section 415 restrictions and amounts designated by the employee should be determined after consulting TIAA and/or the employee's personal financial adviser. Employees contributing annual additions must fill out a form each year and must have documentation of consultation with TIAA or personal financial adviser. Without this information, the Office of Human Resources will not be able to process the request.

Salary reduction agreements can be changed once each calendar year. Complete details of the 403(b) Defined Contribution Retirement Plan are described in the Summary Plan Description provided to eligible employees. Contact the Office of Human Resources for plan summary information, details and enrollment forms.

Agnes Scott College reserves the right to modify, change or discontinue this retirement program at any time.


Policy No.  383  Issued  1/1/2004 Revised 1/1/2017