Administrative and Professional Handbook
Retirement Benefits
General Information
The retirement plans are designed to help you tax-shelter retirement savings.
When you retire or leave the University, you can purchase an annuity to receive
a lifetime income, periodically withdraw cash, take out a lump sum, continue
to invest, or take advantage of other options.
The NYU Retirement Plan
To learn about the plan, read the Summary
Plan Description.
The Supplemental Tax-Deferred Annuity Plan (STDA)
To learn about the plan, read the Summary Plan
Description.
The NYU Section 457(b) Deferred Compensation Plan
This plan allows you to take advantage of the additional tax-deffered savings
opportunity made possible by Section 457 of the Internal Revenue Code. This
is in addition to any contributions you make to the the 403(b) Plan. Participation
in the 457(b) Plan is discretionary and restricted to employees who:
- earn more than $140,000 per year (i.e. your regular monthly base salary
for your primary appointment is at least $11,666.67 per month) and
- have elected to contribute the maximum permissible amount to the 403(b)
Plan.
For more information please request a Plan Highlights Brochure form the NYU
Benefits Office.
Social Security Retirement Benefits
How Social Security Works
During your working years, you and your employer pay Social Security taxes.
When your earnings cease due to retirement, total disability, or death, Social
Security pays benefits to you or your survivors to replace part of the lost
income.
Social Security retirement benefits are based on your earnings record. To be
eligible for Social Security retirement benefits, you must be fully insured,
which means that you must have earned “quarters of coverage” in jobs covered
by Social Security.* Depending on the year in which you were born, you may need
a minimum of six to a maximum of 40 quarters (the quarters do not have to be
consecutive). During this time you and your employer must have paid Social Security
taxes on your earned income.**
*A “quarter” is one three-month period in a calendar year. Quarters begin on
the first of January, April, July, and October.
**Earned income is a salary or wage paid to you by an employer.
Retirement Benefits
Generally, the amount of the Social Security retirement benefit is based on
the average of your earned income for each year of employment, up to maximum
creditable amounts. The amount will also depend on the age at which you retire.
After retirement, if you earn income over the maximum allowed by Social Security,
the total amount of benefits payable for that year could be reduced. The Social
Security annual earnings limit governs the amount you may earn each year after
retirement and still keep your Social Security benefits. Because the amount
changes each year, it is wise to check with the Social Security Administration
for the latest figures.
More Information
For more information on how Social Security works, visit the Social Security
Administration Web site, www.ssa.gov.
Enrollment and Effective Date
NYU makes contributions to Social Security that equal the contributions you
make through payment of Social Security (F.I.C.A.) taxes.
Social Security (F.I.C.A.) taxes are automatically deducted from your paycheck
beginning on the day you start work at NYU. The amount is a percentage of your
salary, up to a set maximum which changes each calendar year. Contact the Payroll
Department for the latest F.I.C.A. tax rate.
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