To All Eligible Participants in the Vanguard University 403(b) Retirement Plan
As you have been previously notified, Vanguard University will be increasing the match of your salary deferral into the 403(b) Plan to $1.00/$1.00 on the first 2% you elect to contribute into the Plan. Additionally, Vanguard University will match $.50/$1.00 on the next 4% that you elect to contribute. Another way to look at this contribution is that if you want to maximize Vanguards matching contribution, you can do so by contributing 6% or more of your compensation. If you contribute less than 6% of your compensation, you still receive a match, but you are leaving money on the table. Finally, if you are not contributing to the plan, you are encouraged to start, as matching dollars await your contribution. For those currently not contributing, there will be a special informational session December 10th, 2013.
If you intend to make a change in contributions or begin to participate in the 403(b) retirement plan in the 1st pay period in January 2014, there is a requirement to complete the attached form and submit by December 20, 2013. Additionally we have previously discussed the need to set up an account for 1st time participants or those changing vendors. Please continue reading below to see which of the 4 groups you fall into, then, when you are ready to proceed, follow the guidelines for your group:
1. For those who are currently contributing 6% or more and are not changing vendors or contribution percentage, your deductions will continue as current for the January 16 paycheck. The increased match will be reflected with the first paycheck of the New Year, January 16. Unless you want to increase your deductions, you do not have to do anything to get the new match.
2. For those of you who are currently contributing less than 6% and would like to take advantage of the higher match, we must have a new completed form by December 20th, 2013, at 5 PM in our office. As a reminder, regular deductions need to be expressed as a whole percentage, not a flat dollar amount, or we will not be able to process your request.
3. For those who have recently completed and submitted the form, and are 1st time plan participants or have chosen to switch vendors, (i.e. from TIAA-CREF to Fidelity, Fidelity to MBA, etc.) you should have by now enrolled on-line, or in the case of MBA, mailed the form to them, and chosen investment direction for your money. If you have not done that, we will not be able to deduct monies from the upcoming paycheck, as you must set up an account and make investment decisions. Please make sure that you set up an account with your new vendor, as we are not authorized to do it for you.
4. For new employees or existing eligible employees who are not currently contributing to the plan, if you now would like to participate, you must complete the attached enrollment form and submit by the deadline, along with activating your account with the selected 403(b) vendor. Again, if you have not done that, we will not be able to deduct monies from the January 16, 2014 paycheck, as we cannot setup an account or make investment decisions for you.
To complete the new enrollment form, please click here. The maximum contribution for calendar year 2014 is $17,500, with an additional $5,500 catch-up contribution for those 50 and over. The total amount of contributions made on behalf of the employee for any year will not exceed the limits imposed by section 415 and section 403(b) of the IRC. These limits may be adjusted from time to time, and are driven by calendar year IRS regulations. There is no open enrollment, so you can enroll or make changes at any time.Thanks for reading and responding to this e-mail. This is a great opportunity to begin or continue participation in the Vanguard Retirement 403(b) plan, including receiving the enhanced institutional match, so don’t delay . . . sign up today! If you have any questions, please contact Nina Coppersmith or myself.
In His Peace,
Joe Baffa, Director of Human Resources
Vanguard University of Southern California