Pension Plan Salary Deferral
As an employee of Hofstra University, you are immediately eligible to make pre-tax salary contributions into the voluntary portion of the 403(B) Pension Plan unless you are a student who is enrolled and is regularly attending classes at Hofstra University (as described in Section 12 (b)(10) of the Internal Revenue Code).
All contributions are made on a pre-tax basis that means the money comes out of your paycheck before your income is taxed which lowers your taxable income. You can select from a diverse range of investment offerings from hundreds of mutual fund companies. Please keep in mind that pension plans are designed for retirement. Withdrawals before age 59.5 may not be allowed. Additionally, you must contribute at a rate of at least $200 per year to the 403(B) Plan in order to make elective deferrals. In 2018, you may contribute up to $18,500 if you are less than age 50 and employees age 50 or older have the opportunity to make additional contributions up to $6,000.
Total employer and employee contributions to all qualified defined contribution plans are subject to an overall IRC Section 415 limit, which is the lesser of $55,000 or 100% of the employee’s compensation.
If you would like to participate in the plan, or if you would like more information regarding the voluntary salary deferral plan and the sponsored 403(B) pension plan vendors, contact Human Resources at 516-463-5366 or www.tiaa-cref.org/hofstra.