Fordham University’s Retirement Program is designed to help you build retirement income on a tax-favored basis. While there is no mandatory retirement age, certain criteria must be met, to be afforded benefits under this program. There are two plans that comprise Fordham University’s Retirement Program – the Fordham University Retirement Plan and the Fordham University Tax-Deferred Annuity (TDA) Plan.
Normal Retirement from Fordham University is defined as age 65 with ten years of service.
Early Retirement from Fordham University is defined as age 62 with ten years of service
If you are a full-time or part-time administrator, working a minimum of 20 hours or more per week, you can participate in the Fordham University Retirement Plan on the first payroll date occurring after the first day of the first month following your employment with the University.
As a condition of employment, you are required to participate in the program after one year of service or the attainment of age 30, whichever occurs later.
You can participate in the Fordham University Tax-Deferred Annuity (TDA) Plan regardless of the number of hours in a week that you may work. This plan is also available the first payroll date occurring after the first day of the first month following your employment with the University.
Fordham University Retirement Plan
In order to receive a contribution from the University under this plan you are required to make a basic contribution of 5% of your annual base salary. The University, in turn, will contribute an amount equal to 5% of your annual base salary up to the Social Security Wage Base and 10% on any salary above the Social Security Wage Base up to the maximum amount of compensation recognized by the IRS.
If you are under age 30 and have less than one year of service you are not required to make a 5% contribution. If however, you are at least age 30 and have at least one year of service, you are required, as a condition of employment to make the basic contribution of 5%.
After 5 years of service, the University will increase its contribution to 11% of your annual salary, up to the maximum permitted by the IRS.
Tax-Deferred Annuity (TDA) Plan (Voluntary Contributions)
You can enhance your retirement savings by participating in the Tax-Deferred Annuity TDA Plan. The maximum allowable contribution under this program is determined by Internal Revenue Service Regulations. Once per year, typically in December, you will be notified of the maximum voluntary contribution you can make under IRS regulations. If you are a new administrator, you will be advised during your New Employee Orientation on how to have this calculation performed. If you are an existing administrator and would like a recalculation of your benefit, please contact a Benefits Specialist in the Office of Human Resource Management.
You have the choice of making pre-tax or after-tax contributions. Your Roth contributions must remain in the TDA for a minimum of five (5) years in order to be distributed to you tax-free.
Features of the Retirement Program
- You are 100% vested in the program on the first day you join the plan. This means that all of the money that is placed into your account whether through Fordham University’s or your own contributions are 100% your assets.
- All of your contributions in the Fordham University Retirement Plan are based upon pre-tax dollars. This means that your contributions are taken from your bi-weekly paycheck before income taxes are computed. You may make your contribution in the Fordham University Tax-Deferred Annuity (TDA) Plan either as pre-tax or after-tax (otherwise known as a Roth contribution).
- In both the Retirement and the TDA Plans you have the option of investing your contributions with one, or a combination of the following investment providers:
Each company offers a full-range of investment options, from money market and bond funds to stock funds.
- Your earnings can grow with time and are tax-deferred. This means that you will not have to pay taxes on the earnings until you withdraw the money from your account. If you make Roth contributions your withdrawals, including your interest growth may be withdrawn tax-free but must remain in your account a minimum amount of time set by the IRS.
- Loan provisions are offered through this program. For full details please consult with your vendor.
- Withdrawals from your Retirement Plan are not permitted while you are actively employed.
- In-service withdrawals from your TDA are permitted once you reach age 59 ½.
- You are eligible for a Hardship Withdrawal from both the Retirement Plan and the TDA Plan provided you meet the requirements under IRS Regulations. All withdrawals are subject to a 10% penalty tax if you are under the age of 59 ½. To obtain more information on this benefit you should contact a Benefits Specialist.
- Loans are allowed under both the Retirement Plan and the TDA Plan. You must meet certain IRS Regulations in order to obtain a loan from either of these plans. You can borrow up to the lesser of, 50% of your account balance or $50,000. Your loan must be a minimum of $5,000. The loan must be repaid within 5 years for a general purpose loan and 15 years for a loan to purchase a primary residence. The interest rate that is used to calculate your loan repayment will be set by the provider.
Retiree Benefits (Medical, Life Insurance & Tuition Remission)
The Office of Human Resources Management strongly encourages you to review the Summary Plan Description(s) of the health plan(s) you are considering, and consult with a Benefits Specialist for full details regarding the associated costs.
Normal Retirement (65 with 10 Years of Service)
Under the “Normal Retirement” provision you are eligible to participate in Fordham University’s Medicare Carve-Out plan through either CIGNA or Aetna Medicare Advantage (HMO) as long as you were eligible to elect coverage as an active employee, regardless of whether you chose coverage as an active employee. These programs are designed to supplement your Medicare coverage.
Group Life Insurance
As an administrator you are eligible for life insurance under Fordham University’s Group Life Insurance Plan, based upon the following formula:
|65 through 69 years of age||70% of your annual salary at the time of retirement|
|70 years of age or over||$6,000|
Fordham University’s Group Life Insurance is a non-contributory benefit, therefore Fordham University is responsible for the entire cost of the premium.
Administrators who retire from Fordham University at age 65 with 10 years of service are eligible for the same benefits to which they would have been entitled had they continued their employment (see the section entitled Tuition Remission).
Early Retirement (62 with 10 Years of Service)
Under the “Early Retirement” provision you may continue to participate in the same group health coverage that was in effect at the time of your active employment status. Upon the attainment of age 65, you must convert to a retiree medical option, available to retirees beginning at age 65.
Group Life Insurance
As an administrator you are eligible for life insurance under Fordham University’s Group Life Insurance plan, based upon the following formula:
|62 through 64 years of age||1 times your annual salary at the time of retirement up to a maximum of $50,000|
|65 through 69 years of age||70% of your annual salary at the time of retirement up to a maximum of $50,000|
|70 years of age or over||$6,000|
Fordham University’s Group Life Insurance is a non-contributory benefit therefore the University is responsible for the entire cost of the premium.
Administrators who retire from Fordham University at age 62 with 10 years of service are entitled to the same benefits to which they would have been entitled had they continued their employment (see the section entitled Tuition Remission).