Did Somebody Say "Free Money?"
Interested in a 10 percent increase in compensation? Sign me up, coach!
In the Georgetown University 403(b) Defined Contribution Retirement Plan, hundreds of employees are contributing less than 3%. Participants in the DCRP receive a 5% retirement contribution from Georgetown even if they do not contribute, but if they contribute 3% then Georgetown will contribute 10%. Why not take full advantage of this valuable benefit?
You can sign up for the defined contribution program in GMS at any time and the University will pay up to 10 percent of your salary into your retirement savings account. Otherwise, you’re leaving money on the table.
Most people think of a match as a one-to-one proposition, but here at Georgetown our “match” maxes out at more than three to one. That’s as good as it gets. Better yet, your contribution to this plan is collected pre-tax, which means you also save on what you will pay in taxes. And you are vested immediately. What that means is the money is yours whenever you leave Georgetown, whether that is at the end of this academic year or if you remain at the Hilltop for the next 40 years.
Best of all, this money will grow and fund your retirement savings. You get to choose among three top-drawer investment firms – Fidelity, TIAA-CREF and Vanguard – and you will benefit from very low transaction costs so you will get to keep more of what you earn.
Can GURP plan members get in on this action? No, GURP participants can’t get this match, but you can save money pre-tax in the voluntary contribution program. Same investment options, but without the employer contribution. Only 30% of GURP participants currently contribute to the VCRP.