|Submission Date||Aug. 17, 2011|
The New School
Tier2-3: Socially Responsible Retirement Plan
Dir. of Staffing Services
Does the institution offer a socially responsible investment option for retirement plans?:
A brief description of the socially responsible investment option for retirement plans:
The New School offers two retirement plans which are administered by TIAA-CREF.
Employee Contribution – Tax-Deferred Annuity (TDA) Plan
Employees are eligible to make voluntary contributions to the Tax Deferred Annuity (TDA) plan.
New TDA enrollments and changes to existing elections can be made at anytime by completing and a Tax Deferred Annuity (TDA) Salary Reduction Agreement found in the benefits forms and documents section and submitting it to the Office of Human Resources/Benefits.
You may elect to contribute a percentage (i.e. five percent) of your base annual salary or a dollar amount (i.e. $100). The minimum contribution is $25 per pay check. The maximum annual contribution (as set by the IRS) is $16,500. Your account grows on a tax-deferred basis until a distribution is made to you. Employees who are age 50 or over or who will attain age 50 by December 31 are eligible to contribute an additional $5,500 (as set by the IRS) to the Tax Deferred Annuity (TDA) plan.
Please note: Unless you decline to be enrolled, all newly-hired full-time faculty and staff shall be automatically enrolled in the TDA plan the first of the month following 30 days of employment. Contributions will be set at three percent of wages into a TIAA-CREF lifecycle fund based on your expected retirement date, assuming age 65. Information on automatic enrollment will be sent to your home and includes a Declination Form which must be returned to the Benefits Department if you would like to waive participation in the plan. If you have been automatically enrolled and we subsequently receive the waiver form, we will terminate contributions effective the first of the month following receipt of your form.
The New School Retirement Plan (University Contribution)
The New School will make contributions to a retirement plan on your behalf after both of the following requirements are met:
• You must be at least 25 years of age, and
• You have completed one Year of Service with the University.
Please Note: The one-year waiting period will be waived if you were previously employed by a 501(c)(3) organization or governmental entity at least one year as a full time employee. Please note that it is your responsibility to request written verification from your previous employer which states your employment start and end dates, that you were considered a Full-Time employee for at least one year during your employment, that they are a 501(c)(3) organization and submit that statement to the Office of Human Resources with the completed enrollment form. You will be enrolled in the university’s retirement plan and begin to receive the university contribution the first of the month following the date we receive the statement and completed enrollment form.
Once the eligibility criteria are met, you would begin to receive University contributions on the first of the month following one year of employment.
The university will contribute seven percent of your base annual salary if you are under the age of 40 and have less than six Years of Service. The contribution amount is ten percent for those employees age 40 or older or those who have completed six or more Years of Service with the university. The employee directs the investment of the university contributions by choosing from the investment choices offered by TIAA-CREF. Upon enrollment in the plan, you are immediately one-hundred percent vested and have a non-forfeitable right to the university’s contributions and earnings. Your account grows on a tax-deferred basis until a distribution is made to you.
Advantages of the Plan
Voluntary contributions are made on a pre-tax basis, which lowers your taxable income. Upon enrollment, you are immediately one-hundred percent vested and have a non-forfeitable right to your own contributions and earnings.
The website URL where information about the program, policy, or practice is available:
The information presented here is self-reported. While AASHE staff review portions of all STARS reports and institutions are welcome to seek additional forms of review, the data in STARS reports are not verified by AASHE. If you believe any of this information is erroneous or inconsistent with credit criteria, please review the process for inquiring about the information reported by an institution and complete the Data Inquiry Form.