5.8 Retirement Programs
Standard Retirement Program: Regular full-time and part-time faculty are eligible to enroll in the University's Standard 403(b) Retirement Program. Participants may allocate contributions to Teachers Insurance and Annuity Association (TIAA)/College Retirement Equities Fund (CREF) and/or Fidelity Investments and choose from a variety of funds offered by each company. Participation is mandatory at age 35 for full-time and part-time faculty members. Participation with University contributions is optional for eligible persons under age 35. Faculty are required to enroll at the beginning of the contract year following their 35th birthday.
Individuals generally contribute by payroll reduction (tax-deferred contribution). The required minimum contribution is 4 percent of annual base salary in order to receive the University's 11 percent contribution. Employees may make additional tax-deferred contributions (see below). Contributions for employees hired on or after July 1, 1996, are subject to an annual compensation limit per IRS regulations. The compensation limit for 2003 is $200,000.
Faculty and chairpersons have the option to contribute on earnings from summer supplemental contracts. The University will also contribute, providing the individual has elected this option. (Rev. 6/01, Office of Human Resources to reflect Collective Bargaining Agreement)
Voluntary (Supplemental) Retirement Programs: Regular full-time and part-time faculty as well as visiting faculty, may enroll in the Voluntary 403(b) Retirement Program. A variety of funds through TIAA/CREF and Fidelity Investments are available to paticipants for investing their contributions. Contributions are deducted from salary on a pre-tax basis and are subject to IRS limits.
Effective July 1, 2002, eligible faculty may participate in the University's Voluntary 457(b) Deferred Compensation Plan. To participate in the 457(b) plan, employees must first be enrolled in the University's 403(b) plan and be contributing the maximum annual amount (excluding catch-up amounts) as defined by IRS regulations. Contributions to the 457(b) plan are deducted from salary on a pre-tax basis and subject to IRS limits.
Delaware State Employees' Pension Plan: University faculty who are not eligible for the University Retirement Program (TIAA/CREF and Fidelity Investments) may be grandfathered in the State Pension Plan. There is a mandatory personal contribution of 3 percent of monthly earnings in excess of $6,000/year. The University also makes contributions for faculty members who participate in the program. (Rev. 9/02, Office of Human Resources)
Agricultural Extension Retirement Plan: Agricultural Extension staff members holding cooperative appointments with the U. S. Department of Agriculture and who draw 51 percent or more of their salary from Extension funds participate in the Federal Retirement Plan and in the University Standard Retirement Plan (unless grandfathered in the State of Delaware Pension Plan). Additional information may be obtained from the Office of Human Resources and/or the Cooperative Extension Service Department. (Revised 9/02; 4/03)