Page 7 - Columbia University Retirement Brochure - Officers

The Benefits of Saving Early
The sooner you start to save, the more time your money has to potentially
grow. That’s the power of compound interest (interest on your initial $798,735
principal amount and your accumulated interest). As you can see in ($200,000
this chart, even small contributions now help you end up with a bigger contributed)
amount in the long run, just by giving it more time.

$566,317
$10K annually ($250,000
starting at age 40
contributed)

$5K annually
starting at age 25

Hypothetical illustration only. Not intended to represent the past or future performance of any investment. Assumes contributions are made
monthly at a 6% annual effective rate, compounded monthly. Actual performance will vary with market conditions.

What Is Eligible Pay under the Matching Contributions
Officers’ Retirement Plan? The University will match your contributions to the
In general, eligible pay for the Officers’ Retirement VRSP between 1% - 3% of eligible pay as long as
Plan is your W-2 pay up to the IRS annual you contribute. The match is made based on the
compensation limit for the year. It does not include percentage of eligible pay you contribute on a
special compensation such as: pre-tax and/or Roth after-tax basis combined
from each paycheck, not on the total amount you
• Guaranteed income from clinical activities contribute during the year.
(for Medical Center faculty)
All matching contributions are allocated to the
• Special grants such as science and technology
ventures (but not federal grants and contracts, Officers’ Retirement Plan account. Bonuses and
which are included in eligible pay under the additional compensation payments are not eligible
Officers’ Retirement Plan) for retirement core or matching contributions.
• Allowances (such as for housing) or other Maximizing the Match
non-pension eligible additional compensation To receive the full match, you need to contribute at
earnings least 3% of eligible pay per paycheck throughout the
• Imputed income calendar year.

For more information, go to humanresources.columbia.edu/retirement