All non-temporary employees of the College are qualified to participate in the voluntary aspect of the Lafayette College Retirement Plan. This aspect allows employees to make pre-tax contributions (elective deferrals) to investment funds, offered by TIAA and Fidelity, 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.
Qualified faculty and exempt staff employees receive a 10 percent of base pay College 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). (Category A)
Qualified non-exempt staff employees receive an 8.5 percent of base pay College contribution, but do not have a “mandatory (required) contribution” requirement. (Category B)
In addition to employer and mandatory contributions, qualified employees are also able to make voluntary pre-tax contributions to the investment funds offered at the College through TIAA and Fidelity. Both companies offer a wide variety of investment vehicles that collectively cover all major asset classes.
Note: For qualified non-exempt staff employees who are paid on a bi-weekly payroll schedule, voluntary pre-tax contribution elections are applicable to 24 pay periods per year, similar to other employee benefit deductions (such as for healthcare benefits) which are only withheld from the first two pay periods of a month, but not when a third payroll occurs in the same month for the bi-weekly payroll schedule.
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).
The Salary Reduction Agreement (SRA) must be completed to submit changes to and/or enroll in your retirement plan contributions. The SRA form is in DocuSign and automatically submitted for processing. You may download the completed form for your records.
You may enroll online with either, or both, of the College’s retirement plan administrators:
Credit for service worked at a prior employer in which the employee participated in an “employer funded” retirement plan may be submitted for approval toward the waiting period for employer contributions.
We have developed a financial wellness page for employees to access a schedule of workshops, webinars, and other information on financial education resources. This page also includes contact information to schedule individual counseling sessions with a representative of Fidelity or TIAA.
The Retirement Plan offers two recordkeeping platforms, TIAA and Fidelity. There is a parallel line-up of funds across the platforms which include the same eleven (11) mutual funds, and TIAA also includes the TIAA annuity, and a few CREF annuities, that are only available through the TIAA platform.
Investments include a mix of index and actively managed funds, mutual funds and annuity offerings, and a selection of investments from various well-known organizations across the industry, including names like Vanguard, TIAA and CREF, MetWest, and The Hartford. Vanguard will serve as the index provider on the Plan. A suite of Vanguard Target Date Funds is included in the line-up. Target date funds are an asset mix of stocks, bonds, and other investments that automatically become more conservative as a participant approaches their target retirement date and beyond. If a Faculty or Staff member does not choose a preferred platform (TIAA or Fidelity) upon eligibility in the Plan, that member’s contributions will be directed to a Vanguard Target Retirement Fund based on their date of birth on the TIAA platform, which serves as the Plan Qualified Date Investment Alternative (“QDIA”). A QDIA is a default investment option used for plan participants who have not elected where to invest their retirement plan contributions.
For more information on these funds, please refer to the participant communication from your current record keeper, TIAA and/or Fidelity. You may also refer to your dedicated Retirement Plan website at TIAA, www.TIAA.org/lafayette, and/or Fidelity, www.netbenefits.com/atwork.
Investment fees are generally lower than investment fees for funds offered in the past. Lower fees can have a significant impact on fund balances as a result of compounding.
TIAA applies a fee of .09% of your account balance. Participants have the opportunity to receive refunds throughout the year in the form of plan service credits to the extent that total recordkeeping fees collected for the plan exceed $100 per Plan participant, minus plan administration expenses.
Fidelity has an annual participant fee of $115. Other costs of administering the plan may also be charged to participants should they arise.
A mutual fund is a type of investment in which the money of many investors is pooled together to buy a portfolio of different securities. The fund is managed by professionals who invest in stocks, bonds, money market instruments or other securities. In contrast, an annuity is a contract by which an insurance company agrees to make regular payments to someone for life or for a fixed period. Generally, there are two types of annuities. A guaranteed annuity is backed by an insurance company’s claims-paying ability and guarantees principal and a specified minimum interest rate. It may also offer the opportunity for additional amounts in excess of the guaranteed rate. A variable annuity is a contract that provides future payments, usually at retirement. Future payments depend on the performance of the portfolio’s securities and may rise or fall based on investment performance.
Target date funds are an asset mix of stocks, bonds, and other investments that automatically become more conservative as a participant approaches their target retirement date and beyond. A suite of Vanguard Target Date Funds have been added to each of the TIAA and Fidelity platforms.
For more information on these funds, please refer to the participant communication from your current record keeper, TIAA and/or Fidelity. You may also refer to your dedicated Retirement Plan website at TIAA, www.TIAA.org/lafayette, and/or Fidelity, www.netbenefits.com/atwork.
If you wish to move future contributions or balances to the other record keeper, refer to the HR website at https://hr.lafayette.edu/benefits/retirement-savings-plan/ for enrollment information and the salary reduction agreement form that you will need to complete and return to Human Resources.
Fidelity and TIAA Financial Consultants can provide personalized, fund-specific advice and planning services using investment choices on the new menu. During a one-on-one counseling session, a consultant will help you determine if you are saving enough for retirement and create an investment portfolio that is tailored to your unique financial situation and goals. All employees, retirees, and other Retirement Plan participants are welcome to schedule an appointment. You may also use a Financial Advisor of your choice to assist you.
To schedule an individual session with Fidelity by phone, please call 800-343-0860, weekdays, between 8:30 a.m. and 8 p.m. (EST). To schedule a meeting online, please visit http://www.fidelity.com/reserve. .
To schedule an individual session with TIAA by phone, please call 800-842-2252. Consultants are available weekdays from 8 a.m. to 10 p.m. (EST), and Saturday from 9 a.m. to 6 p.m. (EST). You may also schedule a meeting online at TIAA.org/schedulenow.
The Retirement Plan Committee (the “Committee”) was appointed in 2019 by the Board of Trustees to oversee the administrative operation of the Lafayette College Retirement Plan (the “Plan”). That Committee includes faculty and staff who represent a cross-section of the College’s constituencies, and is advised by the College’s investment consultant, Fiducient Advisors.