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As shared in the FY21 Budget Update, effective October 1, 2020 the University will suspend all employer contributions. The suspension of employer contributions is the result of the COVID-19 pandemic’s impact on this year’s budget and anticipated to be in place through June 30, 2021.
Fiscal year: At Seattle University the fiscal year corresponds to the academic year and runs from July 1 of the current year to June 30 of the following year.
Plan year: Benefits are aligned with a plan year which means they are in effect from January 1 of the current year to December 31 of the same year.
Retirement Plan: The Seattle University Employees Retirement Plan (the "Plan") has been adopted by Seattle University (“Employer”) to provide you with the opportunity to save for retirement on a tax-advantaged basis and to provide additional income for retirement. This Plan is a type of retirement plan commonly referred to as a 403(b) plan or Tax Sheltered Annuity (“TSA”). Please see the Summary Plan Document for more details.
Seattle University contributions to the Faculty and Staff Retirement Plan will be suspended from October 1, 2020, through June 30, 2021 (the remainder of the current fiscal year).
For the current plan year any eligible earnings from January 1, 2020 to September 30, 2020 will be counted toward a university contribution for employees who reach 1,000 hours.
This change does not affect employees’ own voluntary contributions. Employees may continue to make voluntary employee contributions while employer contributions are suspended. Employees may also still enroll for voluntary contributions during this time. To enroll, go to www.netbenefits.com/su or contact Fidelity at 800-343-0860.
1) Why did Seattle University decide to temporarily suspend contributions to the Retirement Plan?
The decision was the direct result of the financial toll of the COVID-19 pandemic and resulting negative impact on the finances of the University. It is expected that this action will have a significant positive effect on the current budget deficit and reduce the possibility of further employment actions.
2) When will the University’s contributions to the plan be reinstated?
The University contribution will be suspended through the end of the current fiscal year (June 30, 2021). A decision to resume contributions in the future (as well as the level of contribution) will be made based on the financial status of the University.
3) Will employees still receive any University contribution to the Retirement Plan for the current plan year (2020)?
Yes. Those employees who have met the eligibility requirements will receive a contribution based on eligible earnings from January 1, 2020 through September 30, 2020.
4) Will I still be eligible for my 2020 contribution if I do meet the 1,000-hour eligibility threshold after October 1, 2020?
Yes, those employees who reach the 1,000 hour eligibility requirement by December 31, 2020 will be eligible for a contribution for any eligible earnings from January 1, 2020 to September 30, 2020.
5) Will current voluntary employee contributions toward the Retirement Plan continue?
Yes. Employees can review their voluntary contribution percentage (or make changes to their contributions) at any time by visiting: www.netbenefits.com/su or by calling 800-343-0860.
6) Who should employees contact for help with investment questions or planning?
Personalized investment assistance is available from Fidelity, which can provide educational information to help plan participants make the right decisions for them and their retirement goals.
Speak with a Fidelity Retirement Planning Consultants by calling 800-642-7131 or scheduling an appointment online at https://nb.fidelity.com/.
7) How will this change be reflected on my pay stub after October 1, 2020?
Since earnings from October 1, 2020 to December 31, 2020 will not be considered eligible compensation, there will be no current university contribution shown for these paystubs, however the year to date total will continue to be reflected. Beginning in 2021, all line items for the retirement contribution will be maintained but no balances will be reflected during the suspension.
8) Can employees make additional contributions to make up for the contributions not received from Seattle University?
Yes, however the IRS limits how much can be contributed to the 403(b) Plan. The IRS deferral limits lower on the retirement plan webpage.
Additional plan information beyond the highlights shown below may be found in the official plan summary. Under all circumstances, the plan summary will take precedence over information contained on this website.
| Who’s eligible to contribute | -All employees, except student workers, leased employees and participants in a religious order plan |
|---|---|
| Contribution percentage | - You elect any percent of your before-tax eligible pay - May enroll, disenroll or change your contribution at any time |
| Maximum contribution | - $19,500 for 2020 - $6,500 catch-up contribution for 2020 if age 50 or older - Up to $3,000 additional, if employed by SU 15 years or more |
| Waiting period | - You may enroll immediately |
| Vesting | - Your contributions are always 100% vested |
| Investment choices | - A diverse set of mutual fund choices encompassing stocks, bonds, domestic/international, index and actively managed, target date, socially responsible investments, short-term and fixed return funds - You can change investment allocations at any time |
| Access to your contributions while employed - Loans |
- Available for general purposes For 2020, additional loan options may be available due to the pandemic |
| Access to your contributions while employed - Withdrawals |
- May withdraw funds for any reason if age 59-1/2 or older For 2020, additional withdrawal options may be available due to the pandemic |
| Access to your contributions after employment has ended | - Roll over funds to new employer - Leave funds in account - Request payment |
| Who's eligible | - Employees (except student workers, leased employees and participants in a religious order's plan) who have completed the eligibility period |
|---|---|
| Participation date | -The first of the month coincident with or immediately following completion of the Year of Service eligibility requirement |
| University contributions | - The university may make contributions to your retirement account as a percentage of your eligible pay. - Allocation condition – amounts contributed to your account within a calendar year will be forfeited if you work less than 1,000 hours in that year (unless your employment separation was due to normal retirement, death or Disability) |
| Vesting | - 100% vested immediately |
| Investment choices | - One election applies to all types of plan contributions. Same investment choices as for your own contributions. |
| Access to University contributions while employed - Loans |
- For post-secondary educational expenses or principal home purchase only For 2020, additional loan options may be available due to the pandemic |
| Access to University contributions while employed - withdrawals |
Not available unless you are a faculty member who is participating in phased retirement For 2020, additional withdrawal options may be available due to the pandemic |
| Access to University contributions after employment has ended | - Roll over funds to new employer - Leave funds in account - Request payment |