Carleton College Defined Retirement Plan (Non-Union/Regular Retirement Mandatory Plan):
Regular, benefit-eligible, non-union employees that are 21 years of age or older must participate in the Carleton TIAA-CREF Retirement Plan. The employee contributes 2% of their base salary and the College contributes 10% of the base salary for each participant. Contributions are made on a pre-tax basis and are subject to immediate vesting.
IUOE Central Pension Fund (Union):
Regular, benefit-eligible, union employees participate in the IUOE Central Pension Fund of the International Union of Operating Engineers. Union employees are not able to participate in or be covered by the Carleton College Defined Retirement Contribution Plan. Under the current contract bargaining agreement for the period of July 1, 2012 through June 30, 2013, the College will contribute $2.05 per hour for which an employee works (up to 40 hours in any work week); union employees must have successfully completed their probationary period and achieved seniority in order to participate.
Tax-Deferred Annuity (Non-Union and Union Voluntary Retirement Plan):
Group Supplemental Retirement Accounts (Non-Union and Union):
GSRA (Group Supplemental Retirement Accounts) are also available to interested employees that are 21 years of age or older who would like to contribute additional retirement funds through TIAA-CREF. Contributions to a GSRA are made pre-tax. Contact Human Resources (x5989) for more information.
Roth 403(b) Option (Non-Union and Union):
Effective May 1, 2013, the Roth 403(b) retirement contribution option is available to those participating in the Tax Deferred Annuity (TDA) plan -- also known as the Group Supplemental Retirement Account (GSRA) through TIAA-CREF. To participate in the Roth 403(b) option, employees must have an active TDA account.
Roth 403(b) contributions are deferred post tax. Roth deferrals will not reduce your taxable income for the year like a tax-deferred contribution will. The benefit of making Roth contributions comes when taking a payout from the plan (which would be paid tax free as long as you meet certain requirements for a qualified distribution).
Voluntary contributions for the GSRA (through pre-taxed deferred contribution) and the Roth 403(b) (through post-tax deferred contribution) qualify under the annual contribution limit. You can contribute to one or the other or have a combination of both plans, but all contributions need to fall within annual contribution limits.
Annual Contribution Limit Information:
Employees who are age 50 may add additional deferrals annually. Please see the yearly "Age 50 Catch Up" section on the Retirement Salary Reduction Agreement (link above).
Additionally, for employees 50 and over, there is an additional "lifetime" catch up contribution permitted under IRC414(y), which may permit an additional $3,000.00 in annual contributions over a maximum period of five years. TIAA-CREF will need to provide a maximum deferral calculation prior to any change in contribution level that exceeds the stated maximum annual contribution and Age 50 Catch Up. For consideration of the "lifetime" catch up deferral, TIAA-CREF will mandate that the Carleton College employee be 50 years of age (or older) with 15 (or more) years of service.
To obtain the maximum deferral calculation, please contact TIAA-CREF at 1-800-842-2776.
Following authorization for the "lifetime" catch up contribution from TIAA-CREF, the form (below) must be completed and submitted to Human Resources for processing.
Check out these web sites:
On-line Webinars to learn about your retirement plans, investment options and retirement income options
A variety of on-line calculators to help you plan for retirement
Newsletters discussing retirement for employees