Page 16 - 2015 New Hire Guide
P. 16
Open
Enrollment
Retirement
Fontbonne University 403(b) Plan
(Amended and restated as of January 1, 2015)
The Fontbonne University 403(b) Plan provides one of the best ways to save money for retirement while
deferring current income taxes. The Plan allows both voluntary and matched contributions (for eligible
employees).
Employees must satisfy an eligibility waiting period of two (2) years and be 21 years of age in order to receive a
match from Fontbonne University. This waiting period is waived if an employee is joining Fontbonne after being
employed by another college, university or research institution and was participating in the former employer’s
fully vested plan. In addition, all staff employees who work at least 1,000 hours per year (approximately 20 hours
per week on average) are eligible after satisfying the two year waiting period.
Once eligible for the plan, Fontbonne University will match pretax employee contributions into the plan up
to 5.5% of the employee’s salary. There is also a 403(b) Roth option available to participants eligible for the
Fontbonne match.
During the eligibility waiting period, employees may contribute on a pretax basis into the plan without a match
from Fontbonne. In addition, employees who do not meet the participation requirement (not employed for two
years or adjunct employees), can contribute on a pretax basis immediately following the effective date of hire.
All contributions, whether matched or voluntary, are subject to the limits established by the Internal Revenue
Service. There is currently no vesting on voluntary and matched accounts; in addition, loans are allowed from any
employee accumulations effective in 2014.
Employees will have an account established at TIAA-CREF, and contributions will be sent to TIAA-CREF at
the end of each month. Each participant is responsible for determining the investments for their contributions.
TIAA-CREF has a wide range of investment options available to participants including a traditional annuity,
stocks, money market, bond funds, lifecycle, and mutual funds.
TIAA-CREF’s website offers retirement planning tools as well as online access to accounts. One-on-one
counseling on campus is also available periodically.
16
Enrollment
Retirement
Fontbonne University 403(b) Plan
(Amended and restated as of January 1, 2015)
The Fontbonne University 403(b) Plan provides one of the best ways to save money for retirement while
deferring current income taxes. The Plan allows both voluntary and matched contributions (for eligible
employees).
Employees must satisfy an eligibility waiting period of two (2) years and be 21 years of age in order to receive a
match from Fontbonne University. This waiting period is waived if an employee is joining Fontbonne after being
employed by another college, university or research institution and was participating in the former employer’s
fully vested plan. In addition, all staff employees who work at least 1,000 hours per year (approximately 20 hours
per week on average) are eligible after satisfying the two year waiting period.
Once eligible for the plan, Fontbonne University will match pretax employee contributions into the plan up
to 5.5% of the employee’s salary. There is also a 403(b) Roth option available to participants eligible for the
Fontbonne match.
During the eligibility waiting period, employees may contribute on a pretax basis into the plan without a match
from Fontbonne. In addition, employees who do not meet the participation requirement (not employed for two
years or adjunct employees), can contribute on a pretax basis immediately following the effective date of hire.
All contributions, whether matched or voluntary, are subject to the limits established by the Internal Revenue
Service. There is currently no vesting on voluntary and matched accounts; in addition, loans are allowed from any
employee accumulations effective in 2014.
Employees will have an account established at TIAA-CREF, and contributions will be sent to TIAA-CREF at
the end of each month. Each participant is responsible for determining the investments for their contributions.
TIAA-CREF has a wide range of investment options available to participants including a traditional annuity,
stocks, money market, bond funds, lifecycle, and mutual funds.
TIAA-CREF’s website offers retirement planning tools as well as online access to accounts. One-on-one
counseling on campus is also available periodically.
16
