Understanding the Defined Contribution Retirement Plan Enhancements for 2009
Please use the bulleted links below to jump to the corresponding section:
- Plan Overview
- What's New for 2009?
- Staff Hired in 2008
- President DeGioia Announcement - December 2007
- Chief Benefits Officer, Charles DeSantis, Letter to the Community - March 2008
- Georgetown University Retirement Plans and Enhancements for 2009, Presentation from Financial Education Conference - April 2008 (pdf)
Defined Contribution Retirement Plan - A Brief Overview
Building retirement income is a shared responsibility between you and Georgetown University. With the Defined Contribution Retirement Plan, you and Georgetown University work together to invest in your future. Your retirement account balance grows based on:
- Your contributions,
- Georgetown University’s contributions, and
- Investment income on your total account balance.
Contributions to the Plan (yours and Georgetown University’s) are made to your account every pay period, giving your account the opportunity to grow
throughout the year. Not only will the account grow with contributions, it also has the potential to grow as a result of investment returns on your balance that may be realized throughout the year. You decide how to invest your contributions and Georgetown University’s contributions by choosing
among a variety of funds offered by Fidelity Investments, TIAA-CREF and The Vanguard Group. All investment earnings and/or losses are reflected in
your account.
- All benefits-eligible faculty, AAP and staff working at least 20 hours a week are eligible to participate;
- The University automatically contributes 5% of your gross pay, regardless of whether you personally contribute;
- The University will contribute an additional 5% when you contribute 3% of your salary.
- If you contribute less than 3% to the Plan, your contribution will automatically increase by 1% each July 1, until you reach the maximum 3% employee contribution to the 403(b) plan. You may opt-out of this “automatic enrollment” feature by contacting the Office of Faculty and Staff Benefits.
Retirement CHOICE: August 15 - September 30
Staff who are working more than 20 hours a week and currently eligible and/or enrolled in the Georgetown University Retirement Plan (GURP) have a one-time opportunity to choose how to receive future retirement benefits as of January 1, 2009. If you fall into this category, you will need to decide if you would like to enroll in the Defined Contribution Retirement Plan or remain in your current plan, GURP. The Retirement Choice period is officially over. All Choice-eligible staff will be receiving a confirmation statement of their Retirement Choice mailed to their home address. If you have any questions, please contact the Office of Faculty and Staff Benefits at 202-687-2500.
If you are a staff member working 20 or more hours a week and were hired in 2008, you are eligible to participate in the Defined Contribution Retirement Plan as of January 1, 2009. For those who were hired before July 15, you will have access to the the Online Retirement Choice Tool between August 15 - September 30, to make your elections. Staff hired after July 15 will be contacted by the Office of Faculty and Staff Benefits and asked to complete the required paperwork.
