Lesley University Retirement Plan

Enrolling in the Retirement Plan

New employees are eligible to join the Lesley University Retirement Plan (the Plan) upon their date of hire, and are automatically enrolled in the Plan. Current employees who are eligible to participate in the Plan must complete a Salary Deferral Agreement [pdf] to indicate how much they want deducted from their salary each pay period. Once the necessary enrollment form has been completed, it will be processed, setting up the appropriate deductions from your pay. Additionally, an application to establish your account will be sent to TIAA-CREF directly, and any money you or Lesley contributes to your retirement account will be allocated to the investment fund(s) you select.

Investing in the Retirement Plan

The Plan offers over 30 investment choices through TIAA-CREF. These include annuities, money market funds, real estate funds and equities. Each of these categories carries a different degree of investment risk. Plan participants may make changes to their investment choices by going on-line at www.tiaa-cref.org/lesley or by contacting a TIAA-CREF counselor anytime during the year. You may call the TIAA-CREF Counseling Center at 800.842.2252 to speak to a counselor directly.

Pre-Tax Versus After-Tax Contributions

The Plan allows employees to contribute to their retirement account on a pre-tax or after-tax basis. By making contributions on a pre-tax basis, you lower your current state and federal income taxes. In this scenario, you pay taxes on your investments and earnings when you withdraw the money from your account during retirement. Essentially, the taxes an employee pays when receiving income in retirement might be less than what they would otherwise pay now.

In addition to being able to make pre-tax deposits, Plan participants may also make after-tax deposits to their retirement account by directing payroll deductions to the Roth 403(b) account. Under the Roth 403(b) feature, taxes are paid on deductions at the time they are taken from your pay. These deductions may be invested in the same funds as those invested with pre-tax dollars. However, if you meet certain requirements, when you withdraw your funds in retirement, your deposits and investment earnings are not taxed.

Note: You may want to consult your financial advisor or accountant before deciding whether to make pre-tax or after-tax contributions to your retirement account.

University Contribution Match Schedule

If a Plan participant deposits at least 3% of pay into his retirement account, the University will deposit 5% in the participant's account. At a 5% participant contribution, the University's match is increased to 7% of pay. The University match may be even higher, depending on the participant's years of service. The table below shows the University match based on the Plan participant's contribution level.

Salary Deferral Limits

In 2012, Plan participants will be able to defer up to $17,000 annually for their retirement account, up from $16,500 in 2011. Plan participants must complete a Salary Deferral Agreement [pdf] (SDA) to indicate the percentage they want to have deducted from their pay.

Catch-Up Contributions

Employees who are age 50 or older will be able to make additional, tax-deferred contributions ("catch-up contributions"), beyond the general salary deferral limit described above. The catch-up contribution maximum amount is $5,500 in 2012.

15-Year Rule

The 15-year rule allows employees with 15 or more years of service at Lesley (including service at AIB) to contribute up to an additional $3,000 per year to the Plan on a pre-tax basis (up to a career maximum of $15,000 in these extra contributions). A few highly compensated employees who have made maximum contributions over many years may be limited in the extra amounts they can contribute under the rule.

To determine if you are eligible to make additional deposits under the 15-year rule, TIAA-CREF must run a tax deferred annuity calculation. Eligibility is dependent upon prior contributions, salary and years of service. Employees may contact TIAA-CREF directly to request the 15-year calculation. Eligible employees may also contact Human Resources at 617.349.8787 to complete the appropriate paperwork.

Changing or Stopping Elections

You are allowed to increase or decrease your contributions to your retirement account up to four times during the calendar year by completing a new Salary Deferral Agreement [pdf] (SDA) and submitting it to Human Resources. You may waive your participation in the Plan at any time. If a change is desired, you must submit your new SDA to Human Resources before the 1st of the month in order for the change to take effect during the following month. Past contributions to your retirement account will remain intact and will continue to be active.

Changing Your Beneficiary

To designate or change your Plan beneficiary, you can do so on-line at www.TIAA-CREF.org/lesley, or by contacting TIAA-CREF directly at 800.842.2252.

Plan Documents

The information on this website is meant to provide a general description of certain features of the Lesley University Retirement Plan, which becomes effective on January 1, 2012. The Summary Plan Description (SPD) and Plan documents provide the full details and description of the Plan and its governance. If there are any discrepancies between the information provided here and the Plan documents, the Plan documents will govern. The SPD and Plan documents are available for review in Human Resources.