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403 (b) Annunity Plan
Spelman has
established a 403(b) annuity plan to provide employees the potential
for future financial security for retirement. The plan is provided
through The Teachers Insurance and Annuity Association (TIAA) and the
College Retirement Equities Fund (CREF)
To be
eligible to join the 403(b) savings plan and receive the matching
funds, you must a full-time employee and be at least 21 years of age.
You are eligible to join the plan and contribute funds the 1st of the
month following your date of hire. Eligible employees may participate
in the 403(b) plan subject to all terms and conditions of the plan.
The 403(b)
annuity plan allows you to elect how much salary you want to contribute
and direct the investment of your plan account, so you can tailor your
own retirement package to meet your individual needs. Spelman also
contributes an additional matching amount to each employee's 403(b)
contribution. The matching schedule is shown below:
You
Contribute Spelman's Contribution
You Contribute Spelman's Contribution
2% 4%
5% 6%
Matching
contributions will apply only to base pay. Employee contributions will
only be taken from regular earnings.
Normal
retirement benefits are available at age 65 and death benefits are
available for beneficiaries.
Your
contribution to a 403(b) plan is deducted on a pre-tax basis and you
may save tax dollars by having your current taxable income reduced.
While the amounts deducted generally will be taxed when they are
finally distributed, favorable tax rules typically apply to 403(b)
distributions.
Vesting
Full-time
employees hired before January 1, 2001, are fully vested. This means
you own the funds in your account including the contributions made by
the College. Employees hired after January 1, 2001 are vested upon
completion of three (3) years of service.
Group
Supplemental Retirement Annuity (GSRA)
The Group
Supplemental Retirement Annuity is also an option available to
employees. The GSRA offers a vehicle for employees to tax defer
additional income. The College does not contribute to the GSRA. The
GSRA has various investment options and offers a loan feature.
Complete
details of the 403(b) annuity plan are described in the Summary Plan
Description provided to eligible employees. Contact the Office of Human
Resources for more information about the 403(b) plan.
Policy No. 320 Effective Date: 9/1/2000
Revision Date: 6/1/2002
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