Retirement Savings - Human Resources - Carnegie Mellon University

Retirement Savings: Investing in Your Future

Carnegie Mellon’s retirement program ensures that faculty and staff have a financially secure retirement.

  • The University makes contributions through the Faculty and Staff Retirement Plan.
  • Faculty and staff can make traditional pre-tax or post-tax Roth contributions to a Supplemental Retirement Account through the Tax Deferred Annuities Plan.
  • You are responsible for investing the money contributed by the university and by you.
  • Faculty and staff who are considered non-resident aliens may participate in the Vanguard 401k plan.
  Faculty and Staff Retirement Plan (FSRP) Supplemental Retirement Account (SRA) through the Tax Deferred Annuities Plan
Who is
Eligible

Retirement benefits eligible employees who work at least 1,000 hours in an employment year. (minimum age: 21)

See the Plan Description for information about eligibility.

 All employees.

How to
Enroll

See Enrolling in Your Carnegie Mellon Retirement Benefits.

Complete the TIAA-CREF and/or Vanguard application(s) to select your investment allocations.

 Complete the Salary Reduction Agreement and appropriate carrier enrollment form(s).

See Enrolling in Your Carnegie Mellon Retirement Benefits.
Employee
Cost
$0
You do not need to contribute to the SRA to receive university contributions.		 The amount you contribute per month is up to you. 
Amount
Contributed
  • 12-month appointment: Carnegie Mellon contributes 8% of salary.
  • 9-month academic year appointment: 9.78% of academic year salary, paid over nine months.
  • PT employees: employment year contributions made retroactively once you have worked 1,000 hours in such year, and then continued through the rest of the employment year.

Generally, per IRS rules, contributions cannot exceed $49,000 per year (all sources and plans combined).

 Your choice, via payroll deduction:

Minimum: $25 a month
Maximum: 2012 IRS max: $17,000
Age 50+: $5,500 additional allowed


Total cannot exceed annual salary. Contact TIAA-CREF to determine your personal limit.

Limit applies to contributions to all 403(b) or 401(k) plans combined.
Investment
Options

Your choice. 

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).

 Your choice of investment funds and whether contributions are  pre-tax or Roth.
Vesting for Life
(You own/keep contributions)

You are vested if:

  • you have completed at least 3 years of service with the university;
  • your employment terminates at or after age 65; or
  • your employment terminates due to a permanent and total disability.

Service rendered to another college or university that would have met Carnegie Mellon's vesting requirements may reduce your vesting period if you worked at  the other university within the past five years. For this service to be recognized for vesting purposes, please submit a Prior Service Credit Request to the Retirement Benefits Specialist.
Taxation at Time 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.

Roth 403(b) contributions will be made with salary for which taxes have been assessed.
Taxation at Distribution All contributions and their earnings will be taxable at withdrawal.

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.

Roth 403(b) contributions and their earnings are untaxed in retirement if you participated for at least 5 years and are age 59 ½.

An additional penalty will be assessed if you withdraw the funds prior to age 59 ½.

Carnegie Mellon University reserves the right to amend, modify, suspend, replace or terminate any of its plans, policies or programs, in whole or in part, including any level or form of coverage, by appropriate action of the University (or its delegate), without the consent or concurrence of persons affected.

The information presented is not intended to create, nor is it to be construed to create, a contract between the University (or its affiliates) and any one of the University’s employees, former employees, or other plan participants or beneficiaries.

Please note that a summary of the benefits provided under each plan is contained in the summary plan description for such plan. Full details are provided in the official plan documents, which governs the operation of the respective plan. In the event that the content provided or any oral representations made by any person regarding a plan conflict with or are inconsistent with the provisions of the applicable plan document, the provisions of the applicable plan document will control.