Qualified employees of Lafayette College are eligible to participate in the Lafayette College Retirement Plan. This is a defined contribution retirement plan covered under Section 403(b) of the Internal Revenue Service Codes.
All non-temporary employees of the College are eligible, at any time, to participate in the voluntary aspect of the Lafayette College Retirement Plan. This aspect allows qualified employees to make pre-tax contributions (elective deferrals) to investment funds, offered by TIAA-CREF and Fidelity Investments, which are selected by the employee. There are no employer (College) contributions on these amounts.
Qualified employees who work 900 or more hours per year are eligible to participate in the Lafayette College Retirement Plan and receive an employer contribution of either 9.5 or 8 percent (Category A / Category B respectively).
Qualified faculty and exempt staff employees receive a 9.5 percent of base pay employer contribution and must make a “mandatory” (required) employee contribution equal to 5 percent of annualized base pay in excess of $15,000 (pro-rated each pay). Eligibility for this group of employees occurs on the first day of the first full pay period of the month following the employee’s date of hire.
Qualified non-exempt staff employees receive an 8 percent of base pay employer contribution, but do not have a “mandatory (required) contribution” requirement. Eligibility for this group of employees occurs on the first day of the first full pay period of the month following the employee’s two-year anniversary.
In addition to employer and mandatory contributions, eligible employees are also able to make voluntary pre-tax contributions to the investment funds offered at the College through TIAA-CREF and Fidelity. Both companies offer a wide variety of investment vehicles that collectively cover all major asset classes.
Employer and employee contributions are fully (100 percent) and immediately vested. Certain in-service withdrawals and loan allowances are available, but only from employee elective deferral sources (voluntary contribution sources).