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For a detailed description of Smith College’s
retirement plan, please refer to our Summary Plan
Description.
The college's Retirement Plan provides a significant
contribution to income replacement for employees upon retirement. The college pays
approximately 9% of your annual salary to your retirement account(s). The Retirement
Plan is fully funded by the college and you are not required to make any matching
contribution. The college's contributions to your retirement plan are fully vested
beginning with the first premium payment.
The college sends your retirement contributions to accounts
which have been established in your name with insurance and mutual fund companies
with whom the college contracts.
The Retirement Plan is structured so that, after a 30-year
career at the college, you can expect to receive approximately 67% of your final
year's salary in retirement income from a combination of Social Security and Retirement
Plan benefits. While the college cannot guarantee that you will meet this objective,
you have the opportunity to make investment decisions that fit your particular goals.
Tax-Deferred Salary Plan
The Internal Revenue Service (IRS) allows employees
of colleges, universities, and certain other nonprofit organizations to allocate
a portion of salary on a federal tax-deferred basis to retirement accounts.
Eligibility: If you are employed in a regular
or limited-term position of half-time or more, you are eligible to participate in
the Tax-Deferred Salary Plan.
Enrollment: Contact the Office of Human Resources
if you wish to begin saving a portion of your salary for retirement purposes. The
IRS sets annual limits on how much you may defer; these limits are determined by:
(1) your years of service, (2) your current annual salary, (3) the amount of salary
you tax-deferred in previous years, and (4) college contributions to your Retirement
Plan accounts.
Investment Options: You may establish one or
more tax-deferred accounts with the four Retirement Plan companies. The Office of
Human Resources has a list of these companies from which you may choose.
Withdrawal of Funds: You may withdraw funds from
your tax-deferred salary account(s) under certain conditions including termination
of employment, disability, or significant financial hardship. Any amount withdrawn
will be subject to federal tax and an early withdrawal penalty.
Health Insurance for Early Retirees
Employees who retire from Smith College between the ages of 62 and –65, and who have a minimum of 10 years of consecutive service in a regular position at Smith College immediately prior to retirement, may continue to participate in the college's group health plan until age 65, with the college paying half its normal benefit. Please refer to the plan description for the Health Care Program, which can be obtained from the Office of Human Resources, for further details.
For other retiring employees, Medicare Part A (hospital insurance) and Part B (medical insurance) are available beginning at age 65. Enrollment in Part A is automatic when you reach age 65.
Pre-Retirement Counseling
The college sponsors educational programs to help you
acquire the knowledge you need to make appropriate Retirement Plan investment decisions
and to plan for your retirement. The Office of Human Resources will publicize all
on-campus retirement planning seminars. |
