Retirement Plan Enhancements for 2009
The following message was delivered via broacast email to faculty, staff and AAPs on Wednesday, March 19, 2008:
Dear Colleagues:
In early December, 2007, President DeGioia shared the good news that Georgetown University’s Board of Directors unanimously approved an enhancement to the retirement benefits available to staff. It is with great pleasure that I introduce you to the enhancements to the Defined Contribution Retirement Plan (also known as the “403(b) Plan”), which will be available to all eligible faculty, AAP and staff in January 2009.
Before I explain the enhancements to the Plan, let me first reiterate the University’s commitment to providing competitive and equitable benefit programs for all members of our community. The Office of Faculty and Staff Benefits’ goal is to continue to provide you with choice, access, and service, and we believe this program is a positive step in fulfilling our mission. We realize that retirement is an important part of your overall compensation and are happy to offer these benefit plan enhancements to help you meet your future financial needs.
As of January 2009:
* All benefits eligible staff members who are enrolled in the Georgetown University Retirement Plan (GURP) will have the choice to participate in the Defined Contribution Plan or remain in the GURP. Eligible staff members will have the opportunity to carefully evaluate and compare the two plans and make a one-time choice on how to accrue retirement benefits as of January 1, 2009. The choice period will begin in late summer and continue into early fall.
* All faculty members and AAPs eligible for retirement benefits will automatically be eligible to receive all Plan enhancements. This is of particular relevance to those who are currently eligible and not participating in the Plan.
* For Grandfathered participants in the Defined Contribution Retirement Plan (those currently in the Plan and hired prior to 1/1/96) there will be no change to the maximum University contribution. This group will continue to accrue benefits at their current rate.
Overview of Enhancements to Defined Contribution Plan for Staff and Non-Grandfathered Faculty and AAPs
Under the enhanced Plan, the University will automatically contribute 5% of the participant’s pay to his or her retirement account each pay period. Like the current plan, participants will decide how to invest these contributions from a variety of available investment options offered through our three retirement plan vendors. In addition to the automatic 5% University contribution, participants who contribute 3% of their pre-tax pay will receive an additional 5% contribution from the University, for a total contribution to the plan of 13% of pay for the year. Participants are immediately vested in 100% of University contributions toward their retirement. This means that participants own all contributions that post to their accounts.
Information and Resources
To help you get acquainted with the changes to the Defined Contribution Retirement Plan, the Office of Faculty and Staff Benefits is currently developing online and print communications for you, in addition to planning information sessions and other face-to-face outreach opportunities. If you are a benefits eligible staff member, you will have the choice to participate in the enhanced Defined Contribution Retirement Plan or remain in the GURP. To help you make an informed decision, you will receive a personalized statement and projection of future benefits under both plans and will have access to an online modeling tool. Rest assured, staff will have ample time to consider the options and finally make a decision during a choice period which will be held in the late summer and early fall.
The first opportunity you will have to learn more about the enhanced Plan will be at the Financial Education Conference, which will be held in April. We will hold information sessions on each campus as well as on Wisconsin Avenue. We hope to see you there.
Start Saving Now
As you may know, all University employees are eligible to supplement current retirement benefits by participating in the Voluntary Contribution Retirement Plan. This Plan will remain unchanged and continue to be offered in January 2009. So, if you want to start saving now or increase the amount you save, please contact the Office of Faculty and Staff Benefits, or visit http://benefits.georgetown.edu, for more information on how to do so.
We hope you consider Georgetown’s retirement program as an important piece of your overall compensation package and look forward to providing you choice, access, and service in your pursuit of maximizing your retirement benefits. No matter what your circumstance, I encourage you to review all upcoming communications so that you fully understand the impact of this change on your individual retirement and future well-being. If you have any questions, please contact the Office of Faculty and Staff Benefits at 202-687-2500. We look forward to serving you.
Sincerely,
Charles DeSantis
Associate Vice President & Chief Benefits Officer
