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Human Resources

Financial Security

The University's 403(b) Defined Contribution Retirement Plan is an important part of your total compensation, the more you know about the plan the better you can take advantage of all it has to offer.


403(b) Defined Contribution Retirement Plan

In these difficult economic times, all of us would agree that saving for retirement can be difficult - it takes planning and discipline. The Pace University 403 (b) Defined Contribution Retirement Plan is designed to provide faculty and staff with the opportunity to accumulate a source of retirement income in addition to Social Security and personal savings on a tax-deferred basis.

TIAA is the sole plan service provider for the Pace University 403(b) Retirement Plan. The Pace University Retirement Program allows you to electively defer monies from your payroll check on a tax-deferred basis, and if eligible University contributions, into the 403(b) plan. TIAA is the sole plan service provider of the Pace University Retirement Plan, effective January 1, 2011.

  • Investment Carrier: TIAA
  • Website: www.tiaa.org/pace
  • Telephone Number: 1-800-842-2776

The 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.

Summary Plan Description


Eligibility for Employee Contribution

All employees are eligible to contribute to the plan except for students, visiting faculty* and those deemed to be independent contractors. Simply complete a Salary Reduction Agreement Form, and return it to the University Benefits at benefits@pace.edu (or via the helpdesk at at https://help.pace.edu). For employees joining for the first time, please see the bottom of the form for instructions on setting up an account with TIAA.

*a visiting faculty member is a professor on a short-term (non-tenure track) contract to teach at Pace University and are expected to return to that University that generally employs them upon completion of the contract. Visiting faculty are generally paid through their originating college or university and maintain benefits from originating school.


 

Eligibility for University Contribution

All full time employees who meet the following age and full-time criteria are eligible to join the Plan:

Age Service
21-25 years 2 years
26 + years 1 year

Once you meet the eligibility requirements and have completed the necessary enrollment forms, the University will contribute a percentage of your base salary, up to $275,000 effective January 1, 2018. You will also be required to make contributions, which will be on a tax-deferred basis.

The percentages that you and the University contribute will differ based upon your full time date of employment and years of service with the University.

Note: Eligibility Criteria may be waived or credited upon establishing service requirements stated above at another institution of higher education or 501(c)3 organization. Employment with the former institution, organization must be within three years of employment with Pace.


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 retirement plan, your contributions will continue and roll-over from year to 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.


Contribution Limits

Contributions are expressed as a percentage of pay and made on a pre-tax basis by payroll deduction only. Federal law limits the total amount a participant can contribute in one year to all Retirement Savings Plans (such as this plan and other 403(b) plans offering tax-deferred annuities), depending on your age and; in some cases, years of service to your employer.

Year: 2018

Employee Contribution Schedule:   $18,500

Additional Age 50 Catch-up Limit: $6,000

* Each year in October, these limits are adjusted by the IRS for the following year, according to a formula based on the inflation rate (linked to “COLA”) in the third quarter vs. the previous year’s quarter.


Contribution Schedule

The Pace University Retirement Plan accepts both employee and employer contributions:

  1. University Contributions: For required contributions made by the University.
  2. Employee Contributions: For additional voluntary contributions made by the Employee.

The following depict the contribution schedules available under the Pace University Retirement Plan:

For Employees hired prior to October 2, 2000:

Service Employer Per Payroll Contribution Employee Required Per Payroll Contribution Contribution Investment Options
0-9 Years 5% 5% TIAA (Fidelity - Inactive)
10-19 Years 10% 0% TIAA (Fidelity - Inactive)
20+ Years 12% 0% TIAA (Fidelity & TRP Inactive)

For Employees hired or rehired on or after October 2, 2000:

Service Employer Per Payroll Contribution Employee Required Per Payroll Contribution Contribution Investment Options
0+ Years 9% 3% TIAA

Wells Fargo Advantage DJ Target Date Fund

TIAA has been selected by Pace University as the investment provider for your Plan contributions. The Plan lets you invest your account in a number of different investment funds.  Unless you choose a different investment fund or funds, your Plan account will be invested in the default investment option for the Pace University Defined Contribution Retirement Plan, which is the age-based Wells Fargo Advantage DJ Target Fund that corresponds to your estimated date of retirement.  The Wells Fargo Advantage DJ Target Funds provide a ready-made diversified portfolio emphasizing cash and fixed income elements as the funds approach their target date.  The allocation strategy for the underlying equity, fixed-income and short-term mutual funds is based on the number of years expected to reach the target retirement date.  These funds seek to provide high total returns until the target retirement date.  Each fund’s goal will be to seek high current income and, as a secondary objective, capital appreciation.  Each fund’s target asset allocation percentages will automatically change over time to become more conservative by gradually reducing the allocation to equity funds and increasing the allocation to fixed-income and short-term funds.  If the default investment fund changes at any time in the future, you will be notified.

The fact sheet for the Wells Fargo Advantage DJ Target Date Fund provides additional information, including the investment objectives, risk and return characteristics, and fees and expenses of the funds. You can obtain updated information on fee expenses and a more detailed explanation of the TIAA Lifecycle Funds at www.tiaa.org/Pace  or by contacting TIAA at 1-800-842-2776.


As required by the Department of Labor, please see the 2013 Summary Annual Reports (SAR) for the Pace University Defined Contribution Retirement Plan.


Benefits Disclaimer