In a letter to the Brandeis community dated June 12, 2020, President Ron Liebowitz announced that, as part of measures to mitigate expected financial losses to the university in the face of the coronavirus pandemic, Brandeis would temporary suspend employer contributions to employee retirement accounts, beginning July 1, 2020.
The following Q&A is intended to explain and clarify the effects of that decision.
The university sponsors a 403(b) Defined Contribution Plan for faculty and staff. It has a matching contribution feature whereby the university makes a contribution to each participant who is making required contributions of 3% (nonexempt employees) or 5% (exempt employees) to the plan. The university's matching contribution formula is 6% (nonexempt) or 8% (exempt) of a participant’s eligible compensation, which is increased by 2% of eligible compensation the July 1 after the attainment of age 50. In addition, employees may also make additional pretax voluntary contributions to the plan, but these amounts are not matched by the university and are subject to the IRS limits.
The university's matching contribution of 6% (nonexempt) or 8% (exempt) of a participant’s eligible compensation, plus the 2% contribution upon the attainment of age 50, if applicable.
While this will occur for an indefinite period beginning July 1, 2020, we anticipate resumption of the university match on July 1, 2021. This is not a certainty, and resumption of the matching contributions will be contingent on our financial position as we come out of this crisis.
Yes. However, you can choose to suspend or change your required contributions if you wish. You can also choose to make additional contributions to your retirement through the voluntary contribution in our plan. Please note that your existing required and voluntary contribution elections will remain in place during the suspension, but can be changed at any time during the suspension period. Our plan allows you to contribute any amount up to the annual IRS maximum, which is $19,500 if you are under age 50, and $26,000 if you are 50 or older.
Login into netbenefits.com/brandeis and follow the instructions to update your percentages. You may also call 1-800-343-0860 (Fidelity and TIAA) to update your election. Additional instructions can be found on Page 8 of the Brandeis Retirement Planning Website User Guide (pdf).
Once the suspension is lifted, your previously elected employee required contribution will automatically be reinstated if you discontinued it during the suspension period. This will ensure your university matching contribution will resume when the suspension is lifted.
Yes. Once you have met the required one-year waiting period and the suspension of matching contributions is over, you will need to make an active election to start your employee required contribution in our plan at netbenefits.com/brandeis.
Yes. Login to netbenefits.com/brandeis to make any changes to your future contributions and/or to your current balance’s investment allocations. You may also contact Fidelity at 1-800-343-0860 or TIAA at 1-800-842-2252 (www.TIAA.org/brandeis).
Yes. You will be eligible for the extra 2% contribution on July 1 of the year in which you turn 50, if your birthday occurs prior to July 2. If your birthday occurs July 2 or later in the year, your eligibility for the extra 2% will begin on July 1 of the following year.
Contact the Office of Human Resources at humanresources@brandeis.edu or 781-736-4474.