Salary Payments
Retirement Plan
Tax Deferred Annuities and Custodial Accounts
Financial Planning Reimbursement Program
Emeriti Retirement Health Solutions Plan
Life Insurance
Federal Social Security
Health Insurance
Long-Term Disability Insurance
Travel Accident Insurance
Workers' Compensation
Flexible Benefits Program
Employee Assistance Program
College Expenses for Children of Faculty Members Employed on or after September 1, 1974
Tuition for Spouses of Faculty Members
Inclusion of Domestic Partners in the College Benefit Program

Salary Payments

1. Faculty salaries are based on the academic year from September to June, and payments are made in twelve equal installments on the last day of each month beginning on September 30, through a deposit in one of the local banks. A faculty member will be advised in writing of any prospective change in salary.
2. A faculty member on a full-time appointment at Carleton is expected to devote full time to teaching, scholarly activity, and related duties while the College is in session. It is assumed that the faculty member's professional development and contributions to his/her field will involve occasional off-campus activities such as attendance at professional meetings, lecturing, performing, consulting, or research.
3. In addition to specified salary payments, the College provides numerous collateral benefits, as described below, which constitute part of the total compensation of faculty members. Any faculty member at Carleton who normally carries at least a one-half time teaching load for at least two terms of the academic year is eligible for benefits on a prorated basis. If a one-term sabbatical is combined with two terms of unpaid leave within a given academic year, the College will continue to pay its share of fringe benefit costs for the sabbatical term only; the faculty member will be allowed to continue some benefits during terms of leave without pay by paying the total benefit costs. Questions concerning salary payments or collateral benefits may be discussed with the College's Human Resources Office. Changes may occur which would amend, modify, or delete portions of the benefit package at any time. Complete descriptions of the benefits are not possible in this publication. Details of various plans are available in the College's Office of Human Resources and in applicable Summary Plan Descriptions provided to each participant.

Retirement Plan

The College makes Retirement Plan contributions for eligible employees to the Teachers Insurance and Annuity Association of America-College Retirement Equities Fund (TIAA-CREF) and allows eligible employees to invest discretionary salary reduction contributions in tax deferred annuities and custodial accounts.

The Terms of the Carleton College TIAA-CREF Plan (herein-after sometimes referred to as the "Plan") are as follows:

1. Eligibility
   Subject to the provisions set forth hereafter, participation in the Plan, which shall begin on the first of the month following or coincident with the date of employment, shall be based on the following:
   1. An active employee who meets all of the following requirements is required to participate in the Plan and must submit an application to Human Resources:
      1. He or she is ordinarily scheduled to work 1) not less than 20 hours per week or the academic instructional equivalent and not less than 9 months in a pension plan year or 2) not less than 1,000 hours in a pension plan year. Notwithstanding the foregoing, an active employee will be treated as having satisfied this requirement if such employee worked 1,000 hours in the one-year period commencing with the individual's employment date or in any pension plan year.
      2. Eligibility of employees in a collective bargaining unit to participate in the Plan shall be subject to negotiations with the representative of that unit. During any period that an employee is covered by the provisions of a collective bargaining agreement between the College and such representative, he or she shall not be eligible for participation in this Plan unless the agreement expressly so provides. For purposes of this section only, such an agreement shall be deemed to continue after its formal expiration during collective bargaining negotiations pending the execution of a new agreement.
   2. Any employee who is participating in a shared appointment and who meets requirements 1 and 2 of subparagraph A must participate in the Plan and submit an application to the Office of Human Resources.
   3. For accounting and reporting purposes, the pension plan year shall be the calendar year.
2. Plan Contributions

   1. Faculty members contribute 2% of their salary and the College contributes an additional 10% for a total contribution of 12% of salary to the Retirement Plan.

      Notwithstanding the preceding, the contribution on behalf of any participant cannot exceed the amounts permitted under IR Code 403(b)(12).

   2. Each participant shall make a contribution of not less than 2% of his or her salary to the Plan as follows:
      1. Each participant must enter into an agreement with the College to reduce his or her salary by an amount equal to 2% for purposes of such contribution. Reduced amounts are tax deferred until benefits are paid out.
      2. In addition, each participant may, but is not required to do so, enter into an agreement with the College to make additional contributions for the purpose of acquiring additional benefits to reduce his or her annual compensation by a percentage (including the 2% referred to in 1 above) not in excess of the amount permitted as a reduction under section 403(b) of the Internal Revenue Code and, not in excess of $16,500 (participants over the age of 50 may defer $22,000 for 2009) unless the further excess amount is expressly permitted by the Code. However, any such contribution may not be in excess of the amount permitted under Section 415 of the Internal Revenue Code.
   3. For purposes of this Article II, "salary" means base salary excluding overtime, bonuses, summer and other supplementary pay. In accordance with IR Code 401(a) (17), salary taken into account under the plan cannot exceed $245,000 (in 2009, as indexed per IRS Code 4l5(d)).

   4. The College shall forward the combined contributions to TIAA-CREF for the purpose of retirement benefits for the participants as follows:

      At the election of the participant, any split of such combined contribution will be applied as a premium for a TIAA retirement annuity certificate and/or a CREF certificate. Contributions to TIAA may be designated to the Regular Annuity, Real Estate Account, Lifecycle Funds or Mutual Funds. Contributions to CREF may be designated to the following funds: Stock, Money Market, Social Choice, Bond Market, Global Equities, Equity Index, Growth, and/or Inflation-Linked Bond Account.

   5. At the election of each TIAA-CREF participant, funds acccumulated under the Plan may be transferred a) among the Plan's approved CREF accounts and TIAA Real Estate Account; b) to the TIAA Retirement Annuity; or c) from the TIAA Retirement Annuity in substantially equal payments over a ten-year period.
   6. No contribution will be made under the Plan with respect to any payments made in connection with an agreement by a faculty member to terminate employment.
3. Leaves of Absence
   During a leave of absence, contributions made by the College and by the individual will be based on the compensation paid to a participant during such time.
4. Contracts
   Each TIAA retirement annuity contract and CREF certificate issued in accordance with Section II of the Plan is for the sole purpose of providing a retirement and/or death benefit and is the property of the individual participant.
5. Spouses' Rights
   Benefits may only be paid for married participants in the Plan under a qualified joint and survivor annuity or qualified pre-retirement survivor annuity meeting the requirements of the Retirement Equity Act of 1984, unless a written waiver of the benefit by the employee and a written consent to the waiver by the spouse is filed with TIAA-CREF. This provision applies to Repurchase, Retirement Benefits, and Death Benefits.
6. Repurchase and Cash Withdrawal
   1. Cash Withdrawals. A Participant who has attained age 55 may receive a cash withdrawal as permitted by the Funding Vehicle. Cash withdrawals may not be received while the Participant is employed at Carleton College.
   2. Repurchase. A Participant's accumulations in TIAA-CREF Retirement Annuities may be received in a single sum through "repurchase" if certain conditions are met. If a Participant in the Plan terminates employment with the College and requests that TIAA-CREF repurchase his or her Retirement Annuities, the College will approve such repurchase if, at the time of the request, all of the following conditions apply:
      1. The total TIAA Traditional Annuity accumulation in all Retirement Annuities owned by the Participant is not over $2,000.
      2. The Participant does not have a TIAA Transfer Payout Annuity in effect.

      3. The total accumulation attributable to Plan Contributions in all TIAA and CREF Retirement Annuities is not over $6,000.

         Amounts paid to the participant on repurchase or cash withdrawal shall be in full satisfaction of the participant's, and his/her pouse's, rights to retirement and/or death benefits attributable to such amounts repurchased.

         Under this plan a participant terminating employment who requests that TIAA-CREF repurchase his or her annuities must urnish the spouse's written consent to repurchase or cash withdrawal together with an acknowledgment that the epurchase is in satisfaction of all rights (with respect to the amounts distributed) to a retirement or death benefit, at the ime application for repurchase is made. A participant electing such a cash withdrawal should review tax consequences of he action with a TIAA-CREF representative and/or personal tax advisor prior to the transaction.

7. Annuity Income
   Although annuity income usually begins on the normal retirement date, faculty may begin to receive income from the Plan at any time, which may be earlier or later than the normal retirement date. However, if a faculty member is employed by the ollege on the date when benefits under the plan commence, he or she will cease to be a participant of the Plan and no further contributions will be made on his or her behalf.

   Retirement benefits must normally begin no later than April 1 of the calendar year in which the age of 70 1/2 is reached unless still employed by Carleton College. Failure to begin annuity income by the required beginning date may subject a faculty member to a substantial Federal tax penalty. If still employed at Carleton College after age 70 1/2, a participating faculty member must begin distributions no later than April 1 of the calendar year following termination of employment.

8. Amendment
   While it is expected that the TIAA-CREF Pension Plan will continue indefinitely, Carleton College reserves the right to modify or discontinue it at any time.

9. Administrator, Named Fiduciary, Pension Committee
   Carleton College shall be considered the "named fiduciary" and "administrator" of the Plan for purposes of the Employee Retirement Income Security Act of 1974. For purposes of administering the Plan, the Executive Committee of Carleton College may appoint a Pension Committee of three persons. In the event of any difference between this summary and the official Plan document, the latter will apply and govern in all cases.

10. Effective Date
    The effective date of this retirement plan shall be September 1, 1970. The plan is amended and restated as of July 1, 2009.

Tax Deferred Annuities and Custodial Accounts

1. Description
   Carleton College offers a Group Supplemental Tax-Deferred Annuity plan in addition to its regular retirement plan. Also for those employees who might prefer to use "403(b)7's" as a means of tax deferral, the College processes 403(b)7 custodial accounts (available in the form of "mutual funds"). Through a properly drawn salary reduction agreement with the College, employees may reduce the portion of compensation which is currently subject to taxes, and contribute that amount toward the purchase of one of these tax-deferred investment options.

   There is a limit to the amount of tax-deferred contribution the College can make on an employee's behalf, called the "exclusion allowance." There is an exact computation process which establishes the absolute maximum available to an employee for any given year. The Office of Human Resources will provide instructions for obtaining this important calculation from TIAA-CREF.

2. Administration
   The vice president and treasurer is authorized to act on behalf of the College in connection with these annuities and custodial accounts and to establish such rules and regulations as deemed appropriate for them.
3. Regulatory Requirements
   The College's activities shall be limited to those permitted in Labor Department Regulation 25010.3-2(f) such that this program will not be deemed to be a pension plan maintained by the College and will not result in additional reporting obligations for the College.
4. Effective Date
   The effective date of this program was September 1, 1992.

Financial Planning Reimbursement Program

The College has been fortunate over the last several years to offer its employees numerous opportunities to enhance their ability to make informed decisions regarding financial planning concepts. Such opportunities have included a comprehensive financial planning program series, individual counseling sessions with financial planners from the College's retirement plan provider, and a library of relevant resources.

Carleton College is pleased to have a program designed to encourage additional long-range financial planning for all non-union employees. A reimbursement is available to defray the costs associated with long-term financial planning advice provided by a certified financial planner, accountant, attorney or other financial planning professional. Such costs incurred on or after January 1, 1997, are eligible for reimbursement.

Eligible employees are regular employees who work half-time or more for six continuous years OR are tenured OR have reached the age of 50 with one year of service.

Reimbursements up to $300 per employee are available. Reimbursements up to $150 will be available after an eligible employee has attained six continuous years of service or is tenured. An additional $150 will be available when the employee has reached age 50 for a total reimbursement of $300. For those employees 50 years or older with one year of service, the total of $300 is immediately available.

Eligible employees may apply for reimbursement by completing an application and presenting to human resources a paid receipt from the recognized financial advisor for costs associated with long-term financial planning advice. The Office of Human Resources will authorize payment and forward the information to payroll for processing. Costs associated with product transactions should be identified separately and are not eligible for reimbursement under this program. Reimbursement amounts are considered taxable income, will be paid through payroll, and will be shown as "supplemental pay" on the employees' earnings statements.

Emeriti Retirement Health Solutions Plan

This plan provides a tax-advantaged way for eligible employees to invest, and accumulate assets to help meet future retiree medical expenses, and provides a health insurance program for retirees upon attaining age 65 and enrolling in Medicare. The College will contribute a fixed amount, per pay period, to the eligible employee's Emeriti account. Employees may elect to make after-tax contributions to their account as well. Information regarding this plan can be obtained from the Office of Human Resources.  Please note that this benefit is scheduled to end on December 31, 2009.

Life Insurance

All full-time faculty members are covered under a group life insurance plan which is paid for by the College. The amount of insurance provided in each case is the basic annual salary multiplied by a number determined by the attained age (as of each December 31) of the faculty member. The multiplier used is determined in accordance with the following schedule:

The amount of insurance paid is rounded to the next higher $1,000 multiple and will not exceed $250,000 in any case.

Federal Social Security

All members of the faculty are required to participate in the federal Social Security program. For this purpose monthly deductions from salary payments and contributions by the College are made according to the prescribed tax schedules. Federal Social Security benefits, including survivor's insurance, are in addition to those provided by the College through the retirement plan and group insurance coverage.

Health Insurance

Health coverage is available to all eligible employees the first of the month coinciding with or next following the date of employment. Employee-only, employee plus one, or family coverage is available. Participation is the plan is voluntary.

Participants may select one of three Blue Cross Blue Shield options; Aware Gold, Aware PPO, or Options Blue. AWARE Gold offers broad coverage for preventative and catastrophic coverage through a network of health care providers. You pay a part of the cost of some services such as office calls which require a $35 co-pay and pharmaceuticals which require a $15 co-pay for generic drugs, a $35 co-pay for brand name formulary drugs, and a $55 co-pay for brand name non-formulary drugs. You may also receive coverage with non-network providers but can expect higher out-of-pocket costs and other restrictions. AWARE Preferred Provider Organization (PPO) covers most eligible services at 80%. Preventive care is covered at 100%. Prescription drugs require a $15 co-pay for generic drugs, a $30 co-pay for brand name formulary drugs, and a $45 co-pay for brand name non-formulary drugs. You may also receive coverage with non-network providers but can expect higher out-of-pocket costs and other restrictions. Options Blue is a high deductible option with an employer funded health reimbursement account (HRA). Preventive care is covered at 100% to a maximum of $500. Routine cancer screenings are covered at 100%. Prescription drugs require a $15 co-pay for generic drugs, a $35 co-pay for brand name formulary drugs, and a $55 co-pay for brand name non-formulary drugs. You may also receive coverage with non-network providers but can expect higher out-of-pocket costs and other restrictions.

Plan availability, plan design, and premium rates for coverage levels are established on an annual basis. The premium is shared by the College and the employee. There is an annual contract renewal period each year during which participants may change plan options. “Off-cycle” enrollments are not guaranteed and are available only under specific circumstances. Information regarding the Carleton group health insurance plan may be obtained from the Office of Human Resources.

Long-Term Disability Insurance

Disability insurance is available to eligible faculty members. The program, in combination with Social Security and/or Worker 's Compensation will provide a disabled participant 60% of salary up to $10,000 per month beginning with the fourth month of disability. This benefit coordinates with benefits from other sources such as Social Security.

The College contributes approximately one-half of the total cost of premiums for long-term disability insurance against the interruption of income because of long-term total disability. Benefits for participants begin after three consecutive months of total disability and continue during such disability as follows:

Any eligible faculty member is entitled to enter this program after one year of College employment. However, if within three months prior to employment at Carleton, the faculty member was insured through a previous employer under a group disability insurance policy providing income benefits for a minimum of five years, eligibility for insurance hereunder shall be as of the first day of the month coinciding with or next following his or her date of employment.

Travel Accident Insurance

The College contributes the full cost of premiums on a travel accident policy under which faculty members are covered against permanent disability or death while traveling on College business. Similar coverage for all types of accidents, whether incurred in travel or not, is also available to eligible faculty on an employee only or employee and family coverage basis at moderate cost. Further details can be obtained from the Office of Human Resources.

Workers' Compensation

The College carries Workers' Compensation insurance to reimburse medical expenses and to continue salary in the event of occupational illness or accident incurred in the course of employment. Faculty members should immediately notify Human Resources of any such injury. The law requires that a report of injury be filed immediately with the insurance carrier.

Flexible Benefits Program

All eligible employees of the College may voluntarily participate in the Flexible Benefits Program. The program allows eligible faculty members to establish a reimbursement account for dependent care and/or out-of-pocket health care expenses. Since the accounts are funded by pre-tax salary dollars, the employee realizes an immediate tax savings on these expenses. Full program details are available from the Office of Human Resources.

Employee Assistance Program

Because personal and family problems can have just as negative an effect as physical illness on a person's job performance, Carleton College provides an Employee Assistance Program. The program is entirely confidential and provides professional counseling and referral services to the employee, the employee's spouse and dependents.

Services prepaid by the College include: assessing the problem and its severity, developing an individualized treatment plan, assisting in obtaining appropriate and effective information or treatment, and following up to review results. If further treatment is advisable, the costs will be the employee's responsibility; however, those costs may be at least partially covered by health insurance. Employees and members of their family can call any time for professional help. Phones are answered 24 hours a day, seven days per week:

1-800-828-6025

The Employee Assistance Program counselor is also available to assist faculty members, managers, employees, or family members who may be concerned about a person but are unsure of what to do. Anyone may suggest to a Carleton employee or family member that he or she seek help through the program.

College Expenses for Children of Faculty Members Employed on or after September 1, 1974

1. Eligibility
   1. Carleton College extends tuition benefits to faculty and exempt staff whose employment began on or after September 1, 1974. This benefit will be limited to children of tenured faculty and exempt staff with six years of continuous employment at Carleton. The following provisions also apply.
   2. The benefit is limited to the legal children of eligible faculty and staff.
   3. The benefit is limited to children attending accredited undergraduate colleges or universities.
   4. The benefit will not exceed four regular academic years per child and a maximum of twelve regular academic years per eligible member of the faculty or staff.
   5. Eligibility is limited to students of 26 years of age or less as of September 1 in any given year.
   6. The benefit may not be used for expenses in summer school, special programs, or other special fees.
   7. Any child may receive only one benefit under this policy even if both parents fall in the eligible category.
   8. The benefit will be continued for children of deceased faculty and staff who were eligible at the time of their death, subject to the other conditions on this benefit and financial need.
   9. For part-time employees who are employed at least half-time and who meet the other conditions of eligibility, the benefit will be based on the employee's current FTE.
2. Benefit
   1. At Carleton: one half of Carleton's tuition.
   2. At fully accredited colleges and universities other than Carleton:
      1. Either: 50 percent of tuition up to a maximum of 33 percent of Carleton's tuition.
      2. Or: payment of guarantee fee and loan interest on a loan equal to 70 percent of tuition up to 33 percent of Carleton's tuition while the child is a full-time undergraduate student. The subsidy would continue whenever eligible siblings are full-time undergraduate students.

Tuition benefit payments generally will be made directly to the institution the student attends. Contact the Office of Human Resources for financial arrangements or for policy information.

1. Effective Date
   This benefit is effective beginning with the 1990-91 academic year.

Tuition for Spouses of Faculty Members

The College will waive tuition charges for spouses of faculty and "exempt" professional staff members who enroll as special students for one course per academic term at Carleton. All special students register for courses through the Office of the Registrar. Please refer to the Special Student section in the Academic Regulations and Procedures handbook.

Inclusion of Domestic Partners in the College Benefit Program

Domestic partners of eligible faculty members may participate in many of the college's benefit plans. For purposes of this program, a domestic partner is an unrelated partner of either sex whose emotional and financial relationship to the employee is roughly equivalent to that of a spouse. This equivalency is evidenced by facts such as shared residence, joint rental lease, joint ownership of a motor vehicle, joint checking account, joint credit account, joint mortgage, designation of domestic partner as beneficiary for life insurance and retirement contract, designation of domestic partner as primary beneficiary in employee's will and durable property and health care powers of attorney.

Copies of the Domestic Partners policy statement, program details, and application materials are available in the Office of Human Resources.