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    Defined Contribution Retirement Plan 403(b)


    Policy Statement

    The 403(b) Retirement Plan for faculty and staff (the 403(b) Plan) is a defined contribution plan under Section 403(b) of the Internal Revenue Code.


    Reason for Policy

    This policy was created to define the rules and procedures of the employee 403(b) retirement plan.


    Who is Governed by this Policy

    Faculty, Administration and Staff


    Policy

    Adelphi University provides employees with the opportunity to participate in a defined contribution retirement plan established under section 403(b) of the IRS Code.  

    Eligibility and Participation

    All University employees are eligible to participate in the Plan except for the following excluded groups:

    • non-resident aliens who receive no U.S. source income from Adelphi
    • Leased employees
    • Students who are excludable under U.S. regulations; and
    • Independent Contractors

    If you are an eligible employee, you may begin to participate in the Plan by making Voluntary Contributions on the first day of the first calendar month following your date of hire or appointment.

    All full-time non-union employees are required to contribute a portion of their eligible compensation to the Plan after completing two years of service (known as “Mandatory Contributions”).  (See Summary Plan Document for details regarding bridging service). Additionally, effective January 1, 2014, part-time non-union employees who are classified as academic or administrative executives by Adelphi are also required to make Mandatory Contributions to the Plan after completing two years of service.

    If you are required to make Mandatory Contributions, these contributions will start automatically with the first payroll period commencing on or after the first day of the calendar month coinciding with or next following your completion of two year of service or you have eligible service with a previous employer (see Summary Plan Document for details regarding bridging service).

    If you are an employee covered by a collective bargaining agreement between the University and a union (a “union employee”) and or are a part-time employee (other than an academic or administrative executive as described above), you are not subject to the Plan’s Mandatory Contribution requirements.

    The University provides generous employer contributions. The schedules below show the minimum amounts that are required to be contributed and the amount that Adelphi contributes after completing two years of service.   

    For Non-Union Employees

    Years Receiving University Contribution

    Minimum Employee Contribution

    Adelphi Contribution

    First 2 years

    4.5%

     7.5%

    Years 3 to 6

    3.5%

     8.5%

    Years 7 to 20

    2.5%

     9.5%

    Years Greater than 20

     .5%

    11.5%

    For Union Employees

    Years Receiving University Contribution

    Minimum Employee Contribution

    Adelphi Contribution

    First 2 years

    4.5%

     7.5%

    Years 3 to 6

    3.5%

     8.5%

    Years 7 to 20

    2.5%

     9.5%

    Years Greater than 20

    3.5%

    11.5%

    Automatic Enrollment and Contribution Election for Local 153 Employees

    A “Local 153 Auto-Enrolled Employee” shall be automatically enrolled in the Plan on the Automatic Entry Date (as defined below) and shall be deemed to have elected to contribute to the Plan the percentage of his or her Salary set forth as Voluntary Contributions.

    The deemed election described above shall be effective as of the Local 153 Auto-Enrolled Employee’s first payroll period following the Automatic Entry Date (or as soon thereafter as is administratively feasible), unless the Local 153 Auto-Enrolled Employee elects on or before the Automatic Entry Date to increase or decrease his or her deemed election or elects not to contribute Voluntary Contributions to the Plan.

    A “Local 153 Auto-Enrolled Employee” means an Employee covered under the terms of the collective bargaining agreement between the University and the Office and Professional Employees International Union, Local 153 AFL-CIO whose employment commencement date under the Plan is on or after January 1, 2014.

    “Automatic Entry Date” means the first day of the month that is coincident with or next following the 60 day period after the Local 153 Auto-Enrolled Employee’s employment commencement date.

    Each Local 153 Auto-Enrolled Employee’s deemed election percentage for each Automatic Contribution Period (as defined below) shall be determined in accordance with the table set forth below.  The deemed election percentage indicated below shall be applied to the Local 153 Auto-Enrolled Employee’s Salary for each pay period beginning in the applicable Automatic Contribution Period and deposited to the Plan as Voluntary Contributions.

    Automatic Contribution Period Deemed Election Percentage:

    • First Automatic Contribution Period 1%
    • Second Automatic Contribution Period 2%
    • Third Automatic Contribution Period 3%
    • Fourth Automatic Contribution Period 4%
    • Fifth and all subsequent Automatic Contribution Periods 4.5%

    The “Automatic Contribution Period” means each twelve-month period ending on the day before the anniversary of the Automatic Entry Date, such that the “first” Automatic Contribution Period ends on the day before the first anniversary of the Automatic Entry Date and the “second” Automatic Contribution Period ends on the day before the second anniversary of the Automatic Entry Date.


    Definitions  

    Please view formal summary plan description.


    Procedures  

    To begin making voluntary contributions, you must complete a salary reduction agreement and investment designation requesting that a portion of your compensation be contributed to the Plan instead of being paid to you as wages. You must receive these form in the Office of Human Resources. When electing to make voluntary contribution you must:

    • Choose the percentage of your pay that you wish to save each pay period and authorize pre-tax deductions from your paycheck
    • Indicate how you want to invest voluntary contributions and other contributions that may be made to your account (see summary plan document for additional details); and
    • Name a beneficiary.  You plan beneficiary is the person (or persons) you choose to receive plan benefits in the event of your death.  If you are married and want to name someone other than your spouse as beneficiary for at least 50% of your benefit, your spouse must agree to your designation by signing the appropriate beneficiary designation form in the presence of a notary public or Plan representative.
    • If you choose to make voluntary contributions, your pre-tax salary deferrals will begin as soon as administratively possible after you complete and submit your salary reduction agreement.

    Forms

    Forms for this policy must be received in the Office of Human Resources. Upon periodic policy review this area will be evaluated to determine if additional information is needed to supplement the policy.


    Related Information

    Defined Contribution Retirement Plan


    Policy Owner

    Karen F. Loiacono
    Director of Total Rewards
    Levermore Hall, Room 203
    p – 516.877.3229
    e – loiacono@adelphi.edu

    Secondary Contacts

    Sandra Concepcion
    p – 516.877.3217
    e – concepcion@adlephi.edu

    Joanna Ocampo
    p – 516.877.3221
    e – ocampo1@adelphi.edu


    Document History

    • Last Reviewed Date: July 31, 2018
    • Last Revised Date: July 31, 2018
    • Policy Origination Date:  

    Who Approved This Policy

    Karen Loiacono
    Director of Total Rewards

     

    Schools/Departments:

  • Office of Human Resources
  • Categories:

  • Employment/Human Resources
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