Carnegie Mellon Retirement Program

Employee Cost

$0

The university plan is non-contributory (you do not need to contribute to the SRA to receive university contributions)

Your choice. From $25 a month up to annual maximum.

The aAnnual maximum is $15,500 in 2007. For those age 50+, upto $5,000 in additional catch-up contribution is allowed.

Benefit

Carnegie Mellon contributes 8% of your monthly salary on your behalf. (Employees on a nine-month appointment from September to May receive 9.78% per month of their academic year salary, and no contributions are made with respect to summer salary.)

You choose the fund options into which the money should be invested. The FSRP is a traditional 403(b) plan; the contributions and their earnings will be considered taxable income when you withdraw the funds at retirement.

You can contribute your own money through payroll deductions. You choose the investment funds into which your contributions should be invested.

You may contribute to a traditional 403(b) account or to a Roth 403(b) plan. The traditional plan allows you to make pre-tax contributions, which lowers your taxes now while building your retirement income. The Roth plan allows you to make post-tax contributions; the contributions and their earnings are untaxed in retirement.

How to Enroll / How to Change Allocations

Enrolling in Your Carnegie Mellon Retirement Benefits (.pdf) helpsheet

You will automatically be enrolled in the default investment option as of your benefits-eligibility date.

When/if you complete the TIAA-CREF and/or Vanguard application, your funds will be invested into the investment accounts of your choice.

To change the funds in which your contributions are invested, use the retirement administrator websites or complete a new carrier enrollment form.

To begin participating in an SRA, begin investing with a different carrier, or initiate a new type of account (Roth, Traditional) with your carrier,

• complete the New SRA Salary Reduction Agreement (.pdf)
• complete the appropriate carrier enrollment form.

You must complete the carrier enrollment form to begin a Roth account, even if you already have a traditional 403(b) account with the same carrier.)

Once you have enrolled in an SRA with the carrier(s), you can update the amount you contribute to each carrier through HR Connection's SRA Online.

To change the funds in which your contributions are invested, use the retirement administrator websites or complete a new carrier enrollment form.

Full-time employees

All benefits-eligible full-time employees are entitled to contributions.

Part-time or temporary employees

Part-time and temporary employees are entitled to contributions if and when they complete 1,000 hours of service during an employment year. When the participant reaches this point, contributions are made retroactively up to that point, and are continued through the rest of the employment year.