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Faculty and Staff Retirement Plan (FSRP) |
Supplemental Retirement Account (SRA) |
Who is
Eligible |
Benefits-eligible employees who work at least 1,000 hours in an employment year. (Minimum age: 21) |
All benefits-eligible faculty and staff who are at least 21 years of age. |
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How to
Enroll
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You will automatically be enrolled in the default investment option (an age-appropriate TIAA-CREF LifeCycle fund).
Complete the TIAA-CREF and/or Vanguard application to select a different investment allocation. |
To begin participating in an SRA, complete the Salary Reduction Agreement and the appropriate carrier enrollment form(s).
See Enrolling in Your Carnegie Mellon Retirement Benefits (.pdf) |
Employee
Cost |
$0
You do not need to contribute to the SRA to receive university contributions. |
There is no administrative cost to establish an account. The amount you contribute per month is up to you. |
Amount
Contributed |
Those on a 12-month appointment: Carnegie Mellon contributes 8% of your monthly salary.
Those on a 9-month appointment: 9.78% per month of their academic year salary, paid over nine months.
For part-time employees: contributions are made retroactively once you have worked 1,000 hours, and then continued through the rest of the employment year.
Per IRS rules, employer contributions cannot exceed $49,000 per year (all sources combined).
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Your choice, via payroll deduction:
Minimum: $25 a month
Maximum: IRS max (2009 & 2010)
$16,500.
(Age 50+: $5,500 additional catch-up contribution allowed)
Total deferral cannot exceed your annual salary. Contact TIAA-CREF to determine your personal limit.
Limit applies to contributions to al 403(b) or 401(k) plans combined.
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Investment
Options |
You choose the fund options into which the money should be invested.
If you do not select funds, your contributions will be invested into an age-appropriate TIAA-CREF LifeCycle fund (based on a retirement age of 65) by default. |
You choose the investment funds into which your contributions should be invested.
You choose whether your funds are invested in a traditional or Roth 403(b) account. |
| Vesting |
After 3 years of service in which you qualified for University contributions, you will be vested for life. The waiting period may be waived or reduced if you worked at another university, or contributed to a 403(b) account, within the past five years. |
Immediately |
Taxation of
Contributions |
You are not taxed on the contributions Carnegie Mellon makes on your behalf. |
Contributions into a traditional 403(b) account will reduce your taxable income for the months in which you contribute.
Roth contributions will be made with salary for which taxes have been assessed. |
Taxation in
Retirement |
All contributions and their earnings will be taxable at withdrawal in retirement.
An additional penalty will be assessed if you withdraw the funds prior to age 59 ½. |
Traditional, pre-tax contributions and their earnings will be taxable at withdrawal in retirement.
Roth contributions and their earnings are untaxed in retirement if you participated for at least 5 years and are age 59 ½. |
