Bates College 403(b) Retirement Plan

Due to the financial impact of the Pandemic, College Contributions to the 403(b) employer match have been suspended effective for pay periods beginning after June 30, 2020.  You may still contribute your own contributions to the 403(b) Plan.

The Bates College 403(b) Retirement Plan is a 403(b) Tax Deferred Annuity plan, which provides employees with an additional opportunity to save for future financial security for retirement.  All employees are eligible to participate in the Bates College 403(b) Retirement Plan; to participate employees must complete the appropriate on-line enrollment at www.tiaa.org/bates and sign and return a salary reduction agreement to Human Resources.

If you fail to enroll online and make investment elections your contributions will be defaulted into the Lifecycle Fund that most closely matches your expected retirement date at age 65.  Information on how to enroll, the Lifecycle Funds and the Qualified Default Investment Notice are available in Human Resources or found on our web-site at www.bates.edu/hr/benefits or at TIAA at the above internet address.

Because contributions to a 403(b) plan are automatically deducted from an employee’s pay before federal and state tax withholdings are calculated, the employee saves tax dollars now by having their current taxable income amount reduced.  These contributions are not exempt from Social Security or Medicare Taxes.  Employees can elect a percent of their earnings or a flat dollar amount (election of a flat dollar amount must exceed 6% of eligible earnings – see salary reduction agreement for instructions).  The amount that an employee may contribute to the Bates College Savings Plan is limited each year by law.

Previous to July 1, 2020, as an incentive to encourage you to save for retirement, the college matched eligible employee’s contributions by 1/2 up to a maximum college matching contribution of 3% of your salary (i.e. if you contributed 6% the college contributed 3%).  An eligible employee is one in a half-time benefit status or more or has completed 1,000 hours within an employment year.

To have been eligible for the match, the employee must have been enrolled in and contributing to the Bates College 403(b) Retirement Plan.  Eligible participation started on the first of the month following one full calendar month of employment.

Complete details of the Bates College 403(b) Retirement Plan are described in a Summary Plan Description provided to eligible employees. Contact the Human Resources Department for more information about the Bates College 403(b) Retirement Plan.

 

Latest update: 06/29/20