NYU Retirement Plan Eligible Compensation
Eligible Compensation for Calculating NYU Contributions (Matching and Non-Elective): Base Salary Only
The compensation eligible for calculating the NYU matching and non-elective contributions to the NYU Retirement Plan is your base salary only. (Note that for faculty, base salary includes salary for your primary position, plus compensation for any titled administrative assignment, and summer compensation paid up to 3/9 of faculty base salary.)
Eligible Compensation for Calculating Employee Contributions:
Total Cash Compensation
The compensation eligible for calculating an employee contribution to the NYU Retirement Plan is your total cash compensation for the pay period. Your total cash compensation includes:
- base salary,
- additional compensation for teaching,
- activity pay,
- overtime pay,
- cash bonuses,
- summer compensation, and
- any additional compensation for academic and administrative duties performed.
Note that your employee contribution election does not apply to any imputed income, allowances, subsidies, stipends, or other amounts that you did not earn for services performed.
If you receive any form of additional compensation, your employee contribution will increase on a per paycheck basis. As shown in the chart below, the employee contribution increases due to additional compensation being included in eligible compensation for calculating the employee contribution.
|Example of Additional Compensation|
|Employee contribution election||5%|
|Pay period base salary / academic pay||$10,000|
|Pay period additional compensation||$1,500|
|Total pay period compensation||$11,500|
|Results in contributions of:|
|Employee contribution (based on total cash compensation)||$575|
|NYU Non-elective contribution (based on base salary / academic pay)||$500|
|NYU Matching contribution (based on base salary / academic pay)||$500|
|Total NYU and Employee Contributions||$1,575|
How to Enroll / Manage Your Account
Login to NYUHome and select Go on the NYU Retirement Plans card or login to TIAA.org/nyu to manage your employee contribution amount, investments, and beneficiary information. If you need help accessing or navigating the retirement site, contact the NYU Retirement Plans Helpline at 844-NYU-TIAA (844-698-8422).
What compensation is eligible for employee contributions to the NYU Retirement Plan?
Effective May 1, 2018, eligible compensation for the employee contribution is your total cash compensation for the pay period – which includes base salary, additional compensation, activity pay, overtime pay, cash bonuses, summer compensation, and any additional compensation for duties performed.
How could this affect my contributions to the NYU Retirement Plan?
Your employee contribution, which is a percentage of your pay, is now based on total cash compensation for the pay period. If you maintain your current election, and receive any form of additional compensation, your employee contribution will increase. Once your employee contributions have reached the IRS allowed annual maximum, your employee and employer matching contributions will cease for the remainder of the calendar year.
Do I need to take action to maintain my current elections?
No. If you take no action, your NYU Retirement Plan elections are based on your previous NYU Retirement Plan and Supplemental Tax Deferred Annuity (STDA) Plan (if applicable) percentage of pay elections.
What is the Maximum Amount option for my employee contributions to the NYU Retirement Plan?
Choosing the Maximum Amount option enables you to contribute up to the IRS allowed annual maximum (for 2020, $19,500 if you are under age 50 or $26,000 if you are age 50 or older), over the course of the plan year.
Your contribution amount is systematically determined by dividing the applicable IRS maximum by the remaining pay periods in the calendar year, taking into account your 2020 year-to-date pre-tax contributions. Whereas a percentage of pay election may result in employee contributions fluctuating depending on total cash compensation for the pay period, the Maximum Amount election provides a predictable and steady contribution throughout the year.
Is there a change in the NYU employer contribution to the NYU Retirement Plan?
No. The NYU Retirement Plan continues to provide a non-elective (non-matching) employer contribution of 5% of base pay and matching contributions of up to 5% of base pay on a per pay-period basis. NYU employer contributions are subject to the IRS annual compensation limit ($285,000 for 2020).
Three Options for Your Elections
The FAQs at left describe your election options.