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Employee Retirement Savings Plan

Purpose

The College's retirement savings plan (the “Plan”) is a defined contribution tax deferred annuity plan, set up under Internal Revenue Service Code 403(b), with its plan year beginning on July 1 each year and ending on June 30.  It is mandatory, both as a condition of employment, and as required by the Plan, that all eligible employees participate in the Plan, including through employer contributions.  This policy provides additional details and information about the Plan.

Scope

This policy applies to eligible College employees.

Policy

To be eligible to participate in the Plan, employees must fulfill all of the following requirements:

  1. Complete one (1) year of employment with the College;
  2. Be twenty-one (21) years of age; and
  3. Work at least one thousand (1,000 hours*) or more per Plan year.

* This does not apply to adjunct/part-time faculty of the College

For full Plan details, employees should contact the Human Resources Department.

College Contributions

At its discretion, the College may contribute a certain percentage of annual eligible wages to the each employee’s Plan account.  This amount is determined annually by the Board of Trustees and will be announced at the beginning of each Plan year on July 1.  Employees who began employment at the College on June 30, 2000, or before are fully vested in the plan upon entrance.  Employees who began employment at the College on July 1, 2000, or later, vest 20% of the amount contributed by the College to their account during the first year in the Plan, and an additional 20% in each year of eligible service thereafter.  Employees hired after July 1, 2000 are fully vested in their Plan account after 6 full years of continuous employment.

Employee Elective Contributions

It is not mandatory that an employee contribute to their retirement plan.  However, for retirement purposes, employees may elect to contribute up to a certain maximum percentage of their annual wages (excluding the College's contribution). The elective maximum percentage allowed is controlled by Internal Revenue Service regulations. Contact the Human Resources Office for further details.

Retirement Plan Questions

All questions regarding the retirement plan should be directed to the Human Resources Office or to the College's Plan record-keeper.  After an employee is enrolled in the Plan, they will be provided with a Summary Plan Description booklet that contains complete details of the Plan.

Separation from Employment

When an employee separates from employment with the College, they should contact the Human Resources Office to complete appropriate forms for options regarding funds contributed on their behalf by the College, as well as their own elective contributions.

 

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