403 (b) Pension Savings Plan
Wilkes University has established a 403(b) defined-contribution pension savings plan with Teacher's Insurance and Annuity Association/College Retirement Equities Fund (TIAA/CREF) to provide employees the potential for future financial security for retirement.
To be eligible to join the 403(b) savings plan, you must successfully complete 90 days' of full-time service at Wilkes University and be 21 years of age or older. You may join on the first day of the month after completing the 90-day eligibility period or any successive first day of any month thereafter. Part-time employees may be eligible to participate in the 403(b) plan subject to all terms and conditions of the plan.
The 403(b) savings plan requires that you contribute a specifically defined percentage of base pay depending on employee classification (3%, non-exempt staff; 5%, exempt staff) and allows you to direct the investment of your plan account, so you can tailor your own retirement package to meet your individual needs. Wilkes University also contributes an additional amount to each employee's 403(b) contribution. Employees should contact the Human Resources Development Office for information on the employer's contribution.
Because your contribution to a 403(b) plan is automatically deducted from your pay before federal and state tax withholdings are calculated, you save tax dollars now by having your current taxable amount reduced. While the amounts deducted generally will be taxed when they are finally distributed, presumably tax advantages will pertain at retirement age.
Employees are fully and immediately vested in the benefits arising from contributions made to the TIAA/CREF Retirement Annuity under this plan.
Complete details of the 403(b) savings plan are described in the Summary Plan Description provided to eligible employees. You may contact the Human Resources Development Office for more information about the 403(b) Pension Plan.
Policy No. 380 Effective Date: 2/1/2004