Benefits Summaries & Orientation

Retirement

 

Grand Valley State University
RETIREMENT PLAN
Faculty and Executive/Administrative/Professional Staff

 

Get the Summary Plan Description. This document provides further details of the Base Retirement Plan and an example of how benefits are calculated.

Eligibility:All regular faculty and executive, administrative and professional staff members with full time salaried appointments (one half-time or more) who are paid on the basis of a fiscal or academic year are eligible to participate in the plan.

Participation and Vesting:Eligible faculty and staff will begin participation in the retirement plan upon employment with the University. Participants are vested 100% upon completion of two calendar years of employment. The vesting period is waived for those with a minimum of two years experience as a faculty or staff member in a governmental or private institution of higher education.

University Contribution:The University contributes an amount equal to 12% (effective July 1, 1996) of a participant's base salary plus commissions if applicable. Contributions are made to the investment options of the participants choice on a bi-weekly basis.

Participants may choose the retirement planning option that they feel best matches their goals. Participants may direct all or part of their retirement contributions into any combination of the following alternatives:

1. Teachers Insurance and Annuity Association (TIAA) and /or College Retirement Equities Fund (CREF)
2. Fidelity Investments

Participants must inform Human Resources of their choice of allocation for the University contribution between TIAA/CREF and Fidelity Investments. Changes to this allocation may be made at any time during the year by completing the Allocation of University Retirement Contributions/Wavier of 2-year Vesting Period Form available in Human Resources or online.

Changing The Allocation of Funds Within The Investment Firm:Participants may change their allocation of the funds selected within TIAA-CREF or Fidelity Investments as frequently as permitted by that company by contacting the company directly. TIAA-CREF may be contacted at 1-800-842-2733 and Fidelity Investments may be contacted at 1-800-343-0860. Human Resources does not need to be informed of these changes.

Tax Free-Fund Transfer:The University will allow a participant to transfer any portion of their accumulated retirement fund to another approved retirement fund to the extent permitted by law and the companies involved.

Retirement Benefits:Upon retirement at any age, death or total disability, a participant will be entitled to receive monthly or periodic income in accordance with the payment options available by the investment company, subject to any legal requirements. There will be no requirement to select an annuity payment option.

Availability of Withdrawals:

The University will permit retirement plan withdrawals on/after age 59 for current faculty and staff. Withdrawals, transfers and rollovers are also available to those who retire or terminate employment. Borrowing from the base retirement plan (University contributions) is not permitted.

Investment and Retirement Counseling:

This retirement plan will require an increased level of personal planning and counseling. The University has made arrangements to make these services available. Each participant should meet with an approved retirement counselor prior to retirement from the University and preferably no later than age 60. Retirement counselors from TIAA-CREF and Fidelity are on campus semi-annually and are available for personal appointments.

Grand Valley State University

Supplemental Retirement Accounts

 

Faculty and Staff are encouraged to make a pretax contribution to a supplemental retirement account to supplement their retirement income and reduce their current tax burden. Participants can contribute up to the maximum permitted by law to any of the approved retirement investment options.

Faculty and Staff have the opportunity to participate in a 403b or 457b tax-deferred compensation plan. You can view the comparison chart below to assist you in determining which account(s) are most appropriate for your investment plans.

Notice Regarding Eligibility to Make Elective Deferrals to our 403(b) Plan

Get the 403b v. 457b Comparison Chart

Additional information and supplemental retirement account applications for each vendor are available in Human Resources.

If you are a current GVSU faculty or staff member with an existing supplemental retirement account and wish to change your contribution amount, forms are available online.

If you are a current GVSU faculty or staff member with an existing supplemental retirement account and wish to change your asset allocations, you must change those allocations directly with your vendor.

Financial Planning Approved Investment Firm Vendor List

403(b) and 457(b)

TIAA-CREF
730 Third Avenue
New York, NY 10017-3206
(800) 842-2776

Fidelity Investments Tax-Exempt Services
Po Box 1823
Boston, MA 02105-9916
(800) 343-0860

Compounding Interest Calculator
This Calculator shows how much you can accumulate in a tax deferred account based on various hypothetical
monthly contributions, at various rates of return, over a period of 5 to 30 years.

Accumulations after 5 Years
Monthly Contributions
Rate of Return
3%
6%
8%
10%
50
3,237
3,491
3,671
3,859
100
6,474
6,982
7,341
7,717
200
12,948
13,965
14,683
17,434
400
25,896
27,930
29,366
30,869

 

Accumulations after 10 Years
Monthly Contributions
Rate of Return
3%
6%
8%
10%
50
6,990
8,163
9,064
10,073
100
13,979
16,326
18,128
20,146
200
27,958
32,653
36,257
40,292
400
55,917
65,306
72,513
80,583

 

Accumulations after 20 Years
Monthly Contributions
Rate of Return
3%
6%
8%
10%
50
16,383
22,782
28,633
36,199
100
32,766
45,565
57,266
72,399
200
65,532
91,129
144,532
144,797
400
131,064
182,258
229,064
289,595

 

Accumulations after 30 Years
Monthly Contributions
Rate of Return
3%
6%
8%
10%
50
29,007
48,963
70,881
103,965
100
58,104
97,926
141,761
207,929
200
116,028
195,851
283,523
415,859
400
232,056
391,703
567,045
831,717

Tax Savings Calculator
This calculator shows the reduction in your take home pay and your monthly federal and state tax savings based on equal monthly contributions.

15% Federal Tax Bracket
Monthly Contributions
Reduction in Take Home Pay
Monthly Tax Savings
50
41
9
100
81
19
200
162
38
400
324
76

 

28% Federal Tax Bracket
Monthly Contributions
Reduction in Take Home Pay
Monthly Tax Savings
50
34
16
100
68
32
200
135
65
400
270
130

 

31% Federal Tax Bracket
Monthly Contributions
Reduction in Take Home Pay
Monthly Tax Savings
50
32
18
100
64
36
200
128
72
400
256
144
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