Automatic 403(b) Enrollment and Escalation Features Effective January 1st

Each January 1st, all employees who are eligible for the DCRP who are currently contributing less than 3% of their eligible pay will be automatically enrolled at 3%. This change aims to encourage increased retirement savings and ensure all eligible employees receive the maximum matching contribution from the University.

• If you are in Phase One of the DCRP waiting period and are contributing less than 3% to the Voluntary Contribution Retirement Plan (VCRP), your contributions will be automatically increased to 3% in the VCRP.
• If you are enrolled in the DCRP and are contributing less than 3%, your contributions will be automatically increased to 3%, and you will receive the corresponding maximum contribution from the University.
• If you are enrolled in the DCRP and are already contributing 3%, there will be no change to your DCRP contributions.

For individuals enrolled in the DCRP and contributing 3%, there will be automatic contribution escalations to the Voluntary Contribution Retirement Plan  (VCRP).

• Beginning on each January 1, this contribution percentage will increase by 1% annually, until you reach a maximum contribution of 12% in the VCRP.
• If your current contribution is a specific dollar amount, it will be converted into a percentage and increased to the nearest whole percentage.
• If you are already maximizing your contributing to the VCRP (“Maximize VCRP” in GMS) your contributions will be automatically updated to reach the new annual limits released by the IRS.  

This automatic escalation feature will not apply if you are in Phase One of the DCRP waiting period.