Newly hired non-exempt staff to participate in new retirement plan
September 9, 2013
New clerical, service and operations/technical employees hired on or after Sept. 9 will be enrolled in a new Non-Exempt Defined Contribution Plan to be administered by Fidelity.
The University will make a base contribution of 4 percent of an eligible employee's salary and earnings to a 403(b) Defined Contribution Plan, as well as match up to 4 percent of the employee's voluntary contributions.
Thirty days after being notified about the opportunity to contribute to the Voluntary Savings retirement plan, these newly hired employees will be automatically enrolled at a rate of 5 percent of pretax earnings to be deducted from pay. To begin contributions sooner and maximize the University's matching contribution, they are invited to log into NetBenefits at http://plan.fidelity.com/purdue and click "Access Your Account."
Employees may change the amount they set aside for retirement at any time. To receive Purdue's matching contribution, an employee must contribute to the 403(b) Voluntary Savings retirement plan.
Non-exempt employees (clerical and service staff and operations/technical assistants) hired before Sept. 9 who currently participate in PERF's defined benefit plan will remain in that plan. For staff transfers, rehires, reclassifications and other changes, Benefits has created an Interactive Retirement Guide, found at https://www2.itap.purdue.edu/BS/HRCALCULATORS/RetirementCalculator/RetirementCalculator.html, to walk employees through those changes and their impact on an employee's retirement plan. Frequently asked questions about the new plan can be found at www.purdue.edu/hr/pdf/nonExemptDCFAQs.pdf.
For more information on the Non-Exempt Defined Contribution Plan, or to schedule a one-on-one consultation with Fidelity, go to http://plan.fidelity.com/purdue or call 800-642-7131. Additional details are also available at www.purdue.edu/hr/Benefits/retirement.html.
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