Every year, NYU is required to provide retirement plan participants with a notice regarding plan features that enable the NYU Retirement Plan for Members of the Faculty, Professional Research Staff, and Administration (referred to herein as the “NYU Retirement Plan” or “Plan”) to satisfy certain "nondiscrimination" requirements. See below for a description of these features. Please also see the Notice about the Plan's Qualified Default Investment Alternative, which describes your rights and responsibilities in connection with the investment of your Plan account.
Plan Contributions -- the Highlights:
NYU Combined Matching
Total Employee and
NYU does not match
5%, which are made
to the STDA Plan,
but you can still
contribute up to IRS
annual allowable amounts.***
* "Salary" for NYU Retirement Plan purposes means the base salary paid to an employee for services rendered to NYU in his or her primary appointment position. For faculty members, this means base salary for your appointment, plus compensation for any administrative assignment which carries a title and summer compensation paid up to 3/9 of the academic base year salary. For all employees, overtime, additional compensation for temporary duties, overloads, amounts paid through the School of Medicine payroll, consulting fees and any other additional compensation are excluded. Salary in excess of $275,000 a year (for 2018) cannot be considered under the Plan. (The $275,000 salary limit may be increased from time to time in accordance with the Code.)
** Except in connection with a plan correction, the NYU non-matching contribution and matching contribution will never be greater than 10% of the IRS maximum recognizable compensation. For 2017, the maximum recognizable compensation amount is $270,000.
*** The IRS maximum limits for 2018 are $18,500 if you are under age 50 and $24,500 if you are age 50 and over.
Vesting & Withdrawal Rules:
You are always 100% vested in your account under the NYU Retirement Plan. In general, you may take a distribution from the NYU Retirement Plan when your employment with NYU terminates. If you are at least age 59 1/2 and are no longer eligible for contributions under the NYU Retirement Plan, you may make an in-service withdrawal from the Plan.
Default Investment Rules:
Please also see the Notice about Qualified Default Investment Alternatives, which describes your investment rights and responsibilities under the NYU Retirement Plan and the steps you should take if you want to select a different investment than the default Vanguard Target Retirement fund appropriate to your age.
The NYU Retirement Plan is intended to satisfy the rules of Section 401(m) of the Code, which requires the Plan to satisfy certain "nondiscrimination requirements." These requirements are imposed to prevent the Plan from discriminating in favor of highly compensated employees. The Code provides plan sponsors with a "safe harbor" method for satisfying these nondiscrimination requirements. The Plan is intended to satisfy these safe harbor nondiscrimination requirements.
The benefits information in this notice only highlights some of your benefits. More complete information about plan provisions (including the types of contributions, the definition of salary, and important exclusions) can be found in the Summary Plan Description and Plan document. The formal plan documents, available in the NYU Benefits Office, contain all Plan details and legally govern their operation.
NYU reserves the right to amend the NYU Retirement Plan or its other benefit plans, at any time during the plan year, or to reduce or eliminate the safe harbor matching contribution at any time in its sole discretion. If NYU amends the Plan to reduce or eliminate the safe harbor matching contribution during the plan year, you will receive a supplemental notice and the suspension or reduction will not apply until at least 30 days after that notice is provided.
For additional information, a paper copy of these notices, or the Summary Plan Description at no charge, contact NYU PeopleLink at firstname.lastname@example.org, 212-992-LINK (5465), or click below:
This communication is intended to provide general information about the Plan. Plan benefits are paid only if provided for in the legal Plan document. Every effort has been made to ensure the accuracy of this information. However, if there is any conflict between the information in this notice or any other written or oral representation and the language in the Plan document, the terms of the Plan document will control. There may be changes to the Plan in the future. NYU reserves the right to amend, modify, or terminate the Plan, in whole or in part, at any time and for any reason. NYU, its affiliates, and the Plan fiduciaries (and their representatives) do not guarantee, and do not have any responsibility for, the tax, legal, or other implications of a stakeholder’s participation in the Plan.