It’s never too soon – or too late – to start planning for retirement. 51·çÁ÷ realizes the importance of saving for the future, and the University’s 403(b) Retirement Plan can help provide income during retirement years.
An important step in planning for retirement is to establish investment goals and select investment choices to match those goals. Those goals may change over time, so it’s important to periodically reevaluate investment choices.
Investment Options
51·çÁ÷ employees can set up retirement accounts with Fidelity or TIAA.
If no investment option is selected, employees are automatically enrolled in the T. Rowe investment option for the year they turn 65.
To schedule an appointment with Fidelity, call 1-800-642-7131 or visit .
To schedule an appointment with TIAA, call 1-800-732-8353 or visit tiaa.org/schedulenow.
University Contributions
The University will contribute:
- Less than 52 years of age: 5 percent of the employee’s accumulated year-to-date base salary up to $115,230 and 10 percent over $115,230
- 52 years of age and older: 7 percent of accumulated year-to-date salary up to $115,230 and 12.7 percent over $115,230
Maximum base salary eligible for contributions is $345,000. The base salary may change each year based on the Social Security taxable wage base.
Voluntary Contributions
If employees voluntarily contribute an additional amount of their pay, the University will match up to 4%. Changes to voluntary contributions may be made at any time.
Matching Contributions Guide
- 1% salary = 1.5% match
- 2% salary = 3% match
- 3% salary = 3.5% match
- 4% salary = 4% match
Retirement Salary Reduction Agreement Form
Local 200 SEIU - Facilities
The University will contribute an amount equal to 8% of an employee’s base annual salary. The employee is required to contribute at least 2%.
Employees ages 52 and older who contribute at least 3% will receive a 10% contribution from the University.
Faculty Phased Retirement Program
51·çÁ÷’s Voluntary Phased Retirement Program allows eligible faculty members (tenure-stream teaching faculty—full-time and Category I) to move by one intermediate step into normal retirement through the reduction of teaching obligations and salary for a fixed period of time.
Specification of program
- Teaching expectations and salary reduction
The faculty member teaches two courses each year and performs a minimum of 102 hours of other scholarly and non-teaching obligations, e.g., advising, scholarship, and committee service to the department or university, for which they receive 50% of their annual salary. During the phased-retirement period a faculty member’s salary continues to be adjusted through the normal process of setting faculty salaries. The person entering phased retirement may continue to fully participate in department activities if they wish, with the exception that they do not participate in any aspect of the faculty hiring process. A new tenure stream replacement will have first priority for teaching elective or other courses when teaching interests overlap.
- Duration
Maximum of three years (shorter periods may be elected with the approval of the Dean of the Faculty)
- Required ending
In entering this program a faculty member commits to retire at the end of the three-year period; continuous tenure is relinquished and emeritus/a status conferred at the time of retirement; elections to enter the program are irrevocable.
- Hire overlap
With a 50% salary savings, replacement junior faculty may be hired prior to completion of the phased retirement period; as in all cases of replacement hires, these positions are allocated by DAC and are not guaranteed to the department or program of the phased retiree.
- Minimum age
Faculty are eligible to enter phased retirement at age 60.
- Minimum length of service
None is required. However, 51·çÁ÷ does have minimum-service-length requirements for retirement with benefits1 which needs to be satisfied in order to receive normal retirement benefits following the phased retirement period. Retirement with benefits can occur at age 65 with 10 years of service or at 62 with 15 years. Time in service accrues at the rate of ½ year per year served in the phased retirement program.
- Provision of office and/or lab space
Retiring faculty will have access to office and/or lab space depending on availability; space may not necessarily be in the home department and may be shared; junior faculty will receive preference for office space in the departmental area.
- Sabbatical accumulation
Because the faculty member is teaching less than half time for half-time salary, there is no accumulation of SLA credits in phased retirement.
- SLA use
Accumulated SLA credits may be used to decrease teaching load during phased retirement, scheduled via negotiation with the department chair and Dean of Faculty; they cannot be employed to increase salary beyond 50%.
- Institutional support for research and travel
Support continues in full according to the usual policies.
- One or both semesters
The faculty member may choose to teach the two required course in either one semester or two; the salary payment schedule will reflect this choice.
- Option to take on other (external) commitments
Allowed, with approval of the Dean of Faculty for the semester(s) the faculty member is on campus and teaching; approval is not needed for non-teaching semesters.
- Endowed chair-holders
If there are no provisions to allow naming of a second chair holder during the phased retirement period a faculty member will need to relinquish their chair; in the event of a chair being relinquished, emeritus/a status in the chair can be conferred immediately if the individual desires and research stipends attached to the chair will continue in full through the phased retirement period; any course releases associated with distinguished chairs do not apply during a period of phased retirement.
- Dean of Faculty approval is required
Approval is required for a faculty member to enter the phased requirement program; while all applications from eligible faculty members will be approved, 51·çÁ÷ reserves the right to require an employee to defer their requested entry to the phased retirement program if there are multiple requests within the same department or if other operating situations within a department or program so require.
Other Information
- Benefits continue throughout the phased retirement period: health, dental and tuition benefit2 are fully covered; pension contributions, disability coverage and life insurance continue based on base salary paid3.
- It is possible for retirement savings withdrawals to commence during the phased retirement period; it is recommended that the advice of a financial planner be obtained.
- Information concerning this program will be available on the Dean of Faculty web page.
- Teaching faculty members interested in the program should proceed by contacting the Dean of the Faculty, preferably at least one year prior to the requested start date of phased retirement. The Dean will notify the relevant division director and department chair and/or program directors of the request; formal application is by way of the form appended at the end of this document.
- 51·çÁ÷ reserves the right to amend or terminate this program at any time, but such changes will not affect the agreements with faculty members then enrolled in the phased retirement program.
Application
- Please contact Diane Beach (dbeach@colgate.edu) to begin the application process or to learn more about the program.
Footnotes
- 1 Retirement with benefits can occur at age 65 with 10 years of service or at 62 with 15 years. Time in service accrues at the rate of one half (1/2) year per year served in the phased retirement program.
- 2 Eligibility for the higher education tuition benefit (7 years of full-time service) must be established prior to initiation of phased retirement.
- 3 Coverage and benefits will be subject to the terms and conditions of these separate plans, which also may be amended or terminated at any time.
Retirement Healthcare Savings
Emeriti Retiree Health Savings Plan is a way to help 51·çÁ÷ employees pay for healthcare expenses in retirement. As we get older, healthcare costs are likely to take up a larger portion of our budget, and Medicare may not cover everything.
The healthcare savings plan complements the University’s retirement offerings and provides a number of tax advantages.
This account is funded with tax-free employer contributions and your voluntary after-tax contributions. The money is invested in a mutual fund and can be used for qualified medical expenses, including health insurance premiums, deductibles and copays; prescription drug costs; Medicare and long-term care premiums.
Emeriti Plan HighlightsEmeriti Retiree Health Plan Annual Report
Questions
For information on retiring from 51·çÁ÷, visit this page.
If you have other retirement questions, contact Human Resources at benefits@colgate.edu or 315-228-7565.