Untitled Document

RETIREMENT PLAN

Pace University offers a retirement program to assist you in building financial security. The retirement plan provides you with an opportunity to make contributions to tax sheltered investments for the purpose of accumulating retirement income.

The University’s retirement program is made up of two separate plans, Basic and Supplemental. Participation in the plans is voluntary and contributions made by either the University and/or the employee are immediately vested.

Employees may direct either their own contributions and the University contributions to either one of all of the following funding vehicles. Each of the funding vehicles allow you to invest in equities, bonds, fixed income and mixed funds.

Investment Carrier	Website	Telephone Number
TIAA-CREF	www.tiaa-cref.org	800-842-2776
Fidelity Investments	www.fidelity.com	800-868-1023
T.Rowe Price	www.troweprice.com	800-492-7670

Basic Retirement Plan

The Basic Retirement plan is a defined contribution plan in which specific contributions are made by the employee and the University once eligibility requirements are met. The requirements are based upon age and full time service criteria. Please review our website www.pace.edu/hr for eligibility requirements needed to join the basic retirement plan.

Once you meet the eligiblity requirements and have completed the necessary enrollment forms, the University will contribute a percentage of your base salary, up to $200,000. You will also be required to make contributions, which will be on a tax-deferred basis.

The percentages that the you and the University contribute will differ based upon your full time date of employment and years of service with the University. Please review our website, www.pace.edu/hr to see what percentage you and the University contribute to the retirement plan.

Supplemental Retirement Plan

The Supplemental Retirement Plan is a tax deferred contribution plan in which the employee makes additional voluntary contributions to supplement other retirement investments.

There is no eligiblity and/or service requirements to join. Participation begins on the first of the following month upon completion of the necessary enrollment forms. You are not required to participate in the basic retirement plan to join the supplemental retirement plan.

The maximum that you can contribute is subject to IRS statutory limitations. Effective January 1, 2003, employees will be able to contribute a maximum of $12,000 per year, which includes your contributions to the basic and supplemental plans. You may be eligible to contribute an additional $3,000 if you have 15 or more years of service. If you over the age of 50, you may also be eligible to contribute an additional $2,000. Please contact the Human Resources/Benefits office to determine your annual maximum contribution.

Tax Advantage

Your contributions to the basic retirement or supplemental retirement plan are not subject to federal income tax, as governed under section 403(b) of the Internal Revenue Code.

University contributions are also not taxable to you as income as long as they remain in the retirement plan.

Investment earnings that accumulate are tax deferred. Your investment returns grow faster because they are not taxed each year, until withdrawn.

Enrollment Considerations

You must complete the necessary enrollment and payroll authorization forms to participate in the retirement program. Any contributions that you make are tax deferred and are subject to a statutory IRS annual limit.

Once you join the supplemental retirement plan, your contributions will continue and roll-over from year to year. You are able to make 3 changes per calendar year which includes your initial enrollment. All changes and/or new enrollments must be completed no later than October 31st of each year.

You decide how to allocate the investment of both your required contributions and those made on behalf of the University. Any changes to your investment strategies can be addressed directly with your investment carrier(s).

Enrollment in the supplemental plan will not automatically enroll you in the basic plan when you become eligible. You must complete the appropriate enrollment forms for the basic plan upon reaching eligiblity.

You may be eligible for a special tax credit of up to $2,000 based upon your adjusted gross income. You should speak with a tax advisor to determine your eligibility. For more information, contact your local IRS office or review their website at www.irs.ustreas.gov.