Retirement Plans - Postdoctoral Associates

Only postdoctoral associates enrolled on or before April 26, 2009 are eligible for the Yale University Retirement Account Plan, otherwise you can save for retirement by enrolling in the Yale University Tax-deferred 403 (b) Savings Plan.

In a 403(b) Defined Contribution Plan both employer and participant know how much will be contributed to the Plan, but cannot know precisely the retirement benefit. Such benefit will be affected by the amount of accumulation at the point of retirement, the age of the participant at that time and the payout option elected. The most important basis for the payout will be the accumulation, and the most important factor in the accumulation will be the investment return on assets over the accumulation period.

Eligibility to participate in YURAP

In order to continue participation in the Plan, you had to be enrolled on or before April 26, 2009. If you were not enrolled in YURAP prior to April 26, 2009, you are eligible to save for retirement by enrolling in the Yale University Tax-deferred (403) b Savings Plan.

Both postdoctoral associate and employer contributions to the plan are immediately vested, meaning that the total accumulation belongs to the participant even if the employee terminates employment. Investment may be made with either one of the following Plan vendors: TIAA-CREF or The Vanguard Group.

Yale University Retirement Account Plan (YURAP)

	YURAP	New YURAP
Sample Salary	Your Contribution	University Contribution
$40,000	0	$2,000
$50,000	0	$2,500

Contribution by the participant or the University may not exceed the limitations imposed by the Internal Revenue Code and applicable Treasury Regulations. The FY2008/ 2009 salary limitation is $245,000.

Employee and University contributions may be invested with either one of the following companies: TIAA-CREF or The Vanguard Group.

Frequently-Asked-Questions

Can I change my contributions whenever I want?
You can always change the amount of your contribution to YURAP and set the amount between zero and 50%, not to exceed the IRS annual limit, currently $16,500. You can make changes by completing the YURAP Election/Change Form and submitting it to the Benefits Office.

Can I reduce my contribution to zero dollars and still get the University Core?
Yes, the University Core is credited to your account independently of whether you contribute to YURAP.

Can I have the University Core contributions invested separately from my voluntary savings?
Yes, the University Core can be invested with the vendor of your choice, TIAA-CREF or Vanguard.

When will my Plan account be vested?
You will be fully vested automatically in all contributions you and the University have made to your account.

Additional Design Features

Loans

• TIAA-CREF participants will be eligible to take a loan on employee contributions only. There is not a loan feature available for Vanguard at this time.
• The number of loans is limited to two general purpose loans and one hardship loan.

Full distribution rights at termination and retirement

• The University will allow you to take your retirement account balance with you upon termination or retirement.

In-service distributions at age 59½

• During active employment at age 59½, you will be able to take a distribution from the Plan. This is limited to employee contributions only.

Ability to direct University Core and Match to different vendors (TIAA-CREF or Vanguard)

• You may select different vendors for the University Core and your contributions.

Supplemental Retirement Account (SRA) is replaced by an all-in-one 403(b) plan

• If you were contributing to an SRA in addition to YURAP, your SRA contributions will continue and now be included as part of your YURAP account.

Yale University Tax-Deferred 403 (b) Plan

If you were not enrolled in YURAP prior to April 26, 2009, you are eligible to save for retirement by enrolling in the Yale University Tax-deferred (403) b Savings Plan.

Yale University 403 (b) Tax-deferred savings plan allows you to invest contributions from your pay in a wide range of investment options. The monthly contributions and earnings are sheltered from state and federal income taxes until withdrawn at or before retirement.

Additional benefits of the plan:

• Low monthly investment minimum of $25/month
• Earnings are tax deferred until withdrawn
• Flexibility of investment options
• Decreases your taxable income

The University currently offers two different companies through which you may invest your tax-sheltered contributions:

• TIAA-CREF (Teachers' Insurance Annuity Association/College Retirement Equities Fund)
• The Vanguard Group

Both vendors have customized websites designed specifically for Yale employees.  These sites offer detailed fund information, retirement planning calculators and all the forms you need to enroll.

• TIAA-CREF: www.tiaa-cref.org/yale
• VANGUARD: http://yale.vanguard-education.com

You have three options available to you when deciding on the amount to contribute:

1. You can elect a specific percentage.
   
2. You can check off the maximum box and this will allow you to contribute the IRS maximum of $16,500.
3. If you are or will be over the age of 50 during 2009, you can also check off the box to do an additional $5,500 catch up.
   

Select any of the options that apply to you specifically during the tax year 2009.

If you are interested in participating, complete the election form found online here. Once completed, mail or fax the form to the Employee Service Center. Fax number: 432-5153, Mail: 221 Whitney Avenue, first floor.