Retirement Plans, Age 70 1/2 Minimum Distributions FAQs

NYU offers a number of valuable retirement benefits plans to its employees. The Supplemental Tax Deferred Annuity (STDA) Plan is available to all employees. The NYU Retirement Plan and the 457(b) Plan are available to eligible full-time Faculty, Administrators and Research Staff. The Staff Pension Plan is available to all Office & Clerical, Laboratory & Technical, and Service Employees in Object Codes 107PAR, 107PRG, 107PRG/SGT. Participation in these plans provides an excellent opportunity for you to build a financially secure future.

The Supplemental Tax Deferred Annuity (STDA) Plan is a savings investment program that allows you to defer taxes and save money at the same time. The Plan is a defined contribution plan under Section 403(b) of the Internal Revenue Code.

The STDA Plan is available to all employees beginning on their first day of employment. Participation in the plan is voluntary and funded completely by your own contributions. There is no waiting period and you can join at any time during the year.

You decide how much you want to save, up to the IRS maximum, and you choose the investment funds in which contributions to your account will be invested. A wide array of choices are available, so that you can choose the investments that are right for you. (See also, "How much can I contribute to a 403(b) Plan?" below)

You contribute to your account through pre-tax salary reductions. This means that your contributions are taken out of your pay before taxes are calculated, thus reducing current taxable income. (See also, "A Note on Tax-Deferred Contributions and State Practices" below.)

The University has selected TIAA-CREF and the Vanguard Group to offer as investment options under the Plan. When you join the Plan, you choose the investment funds in which contributions to your account will be invested. You can choose to invest your entire account in one fund, or you can spread your investments among several funds. You do not pay Federal, New York State or New York City taxes on the money you save or the earnings on your investments until you withdraw the money, or you begin receiving a regular monthly annuity payout.

If you are not participating in the NYU Supplemental Tax Deferred Annuity Plan and would like to join, contact the NYU Benefits Office for an Enrollment Kit. If you choose to participate, NYU will deduct the amount that you elect to contribute from your pay and invest it on your behalf into the investment option or options that you choose from among the available alternatives.

Your contributions to the NYU Supplemental Tax Deferred Annuity Plan (a 403b plan) are taken from your paycheck before Federal and state taxes are calculated.

State tax laws, however, can differ from state to state. New York State and New York City do not currently tax your individual contributions. However, New Jersey and Pennsylvania consider your contributions to a 403(b) plan as taxable income. Therefore, if you reside in one of these states, you may have to include your 403(b) contributions in your state or local taxable income. Consult with a tax advisor, if necessary.

The NYU Retirement Plan is a defined contribution plan under Section 403(b) of the Internal Revenue Code. You can join the NYU Retirement Plan if you are in an eligible job category at NYU, you normally work at least 20 hours per week, and you have completed one year of service. NYU provides a non-matching contribution of 5% of your retirement eligible salary in the NYU Retirement Plan effective after one year of service. In addition, for every 1% of salary you elect to contribute to the plan, NYU will match each 1% up to a maximum of 5% of your retirement eligible salary. Note: For 2013, the IRS limit for retirement eligible earnings is $255,000. If you elect to contribute more than 5% of your retirement eligible salary (subject to IRS limits), those contributions will be deposited into the Supplemental Tax-Deferred Annuity Plan (STDA Plan).

You can join the NYU Retirement Plan if you are in an eligible job category at NYU with an eligible job title, you normally work at least 20 hours per week, and you have completed one year of service. You have a year of service if you’ve completed:

• One year at NYU in which you worked at least 1,000 hours; or
• One year with your previous employer provided that:
  – Your previous employer was a college, university, medical institution or practice, or tax-exempt medical research institution;
  – Your employment with that institution ended not more than 180 days before your employment at NYU; and
  – You were employed by that institution for at least one year in a non-student capacity and you worked at least 1,000 hours in that one-year period.
  Note: If you have less than one year of service, you can begin contributions to the NYU Supplemental Tax Deferred Annuity (STDA) Plan with your first paycheck or any time thereafter.

The Economic Growth and Tax Relief Reconciliation Act (EGTRRA) established maximum annual limits on the amount that you can contribute to your 403(b) accounts each year. If you participate in both the STDA Plan and the NYU Retirement Plan, your combined contributions to both plans, are subject to this IRS maximum.

For 2013, the maximum contribution is $17,500 for participants under age 50 and $23,000 for participants age 50 or over. This maximum is adjusted by the IRS each year and is usually announced before the end of each calendar year.

The NYU Section 457(b) Deferred Compensation Plan is a deferred compensation plan for eligible faculty, professional research staff, and administrative and professional staff that allows additional tax-deferred savings under Section 457(b) of the Internal Revenue Code.

Eligibility to participate in the 457(b) Plan is determined annually.  In February each year, eligible employees will be notified through email of their eligibility to participate in the Plan, which runs from April 1 through December 31.

Note: Under Section 457(b) of the Internal Revenue Code, this Plan must be considered "unfunded" which means that your deferrals of salary (including any earnings on those deferrals) must be part of NYU's general assets. This means that in the unlikely event that NYU ever became insolvent, your deferrals under the Plan and any investment earnings that have accrued would be subject to the claims of NYU's general creditors and you might lose part or all of your benefits.

The NYU Staff Pension Plan is a defined benefit plan. The University funds the Plan and has oversight of the management of the assets.

You are eligible to participate in the NYU Staff Pension Plan if you are a staff employee working in an eligible job category - Office & Clerical (106/116), Laboratory & Technical (104/114), and Service Employees (107/117PAR, 107/117PRG, 107/117PRG/SGT).

If you are an eligible staff employee, your participation in the Plan will begin on the September 1 closest to when you have completed at least 1,000 hours of service in the 12-month period from your date of hire and you have attained at least 21 years of age.

Note: If you were a Security Officer who was a participant in the Local One Security Officers Money Purchase Pension Plan on June 30, 2007, you became a participant in the NYU Staff Pension Plan on July 1, 2007.

NYU has outsourced the administration of the Plan to JP Morgan Retirement Plan Services, which calculates the benefits and makes sure they are paid. You can reach them by calling the Retirement Service Center at 1-800-345-2345 or online at www.retireonline.com.