Part I Section I: Salary and Benefit Provisions for Active Faculty
A-4 Retirement Plans
Except for Jesuits, all faculty, as defined above, are eligible to participate in the University Retirement Plan.
University faculty may begin participation in the University Retirement Plan upon employment by the University.
Faculty are required, as a condition of employment, to begin participation in the Plan on the January 1 which coincides with or next follows the later of the completion of one year of service at the University, or the attainment of age 30.
Currently, Fordham faculty have a choice of two funding agents for their retirement plan: TIAA or Fidelity.
Contribution to the University Retirement Plan
The University's contribution to the Retirement Plan is based on the faculty member's base salary. Base salary is defined as annual contract salary, and does not include extra remuneration.
For full-time faculty who have less than five (5) years of service the University's contribution to the funding agent is 5% of the faculty member's base salary up to the FICA wage; 10% of base salary in excess of the FICA wage base is also contributed by the University subject to the maximum compensation limitations under IRS regulations.
Note: In order to receive the University contribution, full-time faculty must contribute 5% from their base salary.
Faculty who have five (5) or more years of service have a University contribution of 11 % of their base salary to the funding agent. The faculty member's contribution is 5% of the base salary to the funding agent. The faculty member's contribution is tax deferred.
Payments to the Retirement Plan During a Leave of Absence
During a faculty fellowship and paid leave of absence, the University and faculty member shall continue contributions based upon the base salary during the fellowship or paid leave, provided faculty contributions continue.
During an unpaid leave of absence the University makes no retirement plan contribution.
The plan contributions of the faculty member and the University are vested immediately.
Tax-Deferred Annuity (TDA) Plan
In addition to the University Retirement Plan, faculty may contribute to a tax-deferred annuity plan with TIAA or Fidelity on a tax-deferred basis, that is, before payment of federal and most state and local income taxes, but after the payment of Social Security and Medicare taxes. The funding agent annually informs each faculty member about the maximum exclusion allowance allowed by the tax code.
Distributions from the Retirement Plan or Tax-Deferred Annuity Plan
One of the following qualifying reasons must be satisfied for a faculty member to be eligible for a distribution.
Separation from service
Age 70 1/2, or if later, April 1, following the calendar year in which the faculty member retires
Tax-Deferred Annuity Plan
Separation from service
Attainment of age 59 ½ while actively employed
Amounts contributed to TIAA or Prudential prior to December 31, 1988 are grandfathered and may be withdrawn at any time.
Retired faculty have a number of options available for distributions from their Retirement Plan, including a lump sum option. Faculty anticipating retirement should consult with a representative of the funding agent prior to retirement.
Additional information on the University Retirement Plan and Tax-Deferred Annuity Plan is available from the vendor and the University's Office of Human Resources. All faculty are urged to review the Plan Documents for complete details on the retirement plans.
Pages in Part I Section I: Salary and Benefit Provisions for Active Faculty