For eligible faculty and staff employed by Seattle University on June 30, 2022, the university will restore its prior retirement contributions of 10% of base salaries. The university will introduce a new approach starting in 2023 for those hired on or after July 1, 2022. This new approach will also apply to anyone who leaves the university’s employment and rehires after June 30, 2022. Learn more in the 2023 Retirement Plan Communication 12.20.22.
I was hired by the university before July 1, 2022, and I contribute less than 5 percent to Fidelity. Will this impact the university’s contributions in 2023?
No. Faculty/staff who were employed before July 1, 2022 and have remained employed since then will be eligible for university contributions of 10 percent in 2023 without regard to their personal contributions to Fidelity.
When am I eligible for the university’s contributions?
The general rule is that faculty/staff become eligible for the university’s retirement plan contributions upon completing their first year of employment, if also are credited with 1,000 or more work hours within that year.
Individuals coming directly from another university may be eligible soon after their date of hire. They must have completed two continuous years of full-time employment at an accredited institution of higher education immediately prior to the date of hire and be at least 21 years of age.
What are some examples of the new approach of nonelective and matching contributions for eligible employees hired on or after July 1, 2022?
Example One: You elect to contribute 5% of your 2023 salary. Once eligible, Seattle University will match your contributions with an amount equal to 5% of your pay. The university will contribute another 5% of your pay as nonelective employer contributions. The total contributed to your account is 15% with 10% coming from the university.
Example Two: You elect to contribute 1% to the plan. Once eligible, Seattle University matches your 1% contribution and contributes another 5% as nonelective employer contributions. The total contributed to your retirement account is 7%, with 6% provided by the university.
Example Three: You elect to contribute 0% to the plan. Once eligible, Seattle University contributes 5% as nonelective employer contributions.
What is auto enrollment?
Auto enrollment is a plan feature being added in 2023 for faculty/staff who are hired or rehired on or after January 1, 2023. Employees in this category will have 35 days from Fidelity notification to register their account and make an initial election to voluntarily contribute to a Fidelity account. They may contribute 0 percent or more and may change their elections at any time.
If an election is not made within the initial 35-day window, auto enrollment will be at 5 percent to be deducted from subsequent paychecks. The 5 percent auto enrollment rate may be changed at any time. The university’s plan allows for a request to return, adjusted for gains and losses, up to 90 days after auto enrollment by contacting Fidelity.
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||- $20,500 for 2022, $22,500 for 2023
- $7,500 catch-up contribution if age 50 or older for 2023
- Up to $3,000 additional, if employed by SU for 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
|Access to your contributions while employed - Withdrawals||
- May withdraw funds for any reason if age 59-1/2 or older
|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 retirement at age 65 or older, 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
|Access to University contributions while employed - withdrawals||
Not available unless you are a faculty member who is participating in phased retirement
|Access to University contributions after employment has ended||- Roll over funds to new employer
- Leave funds in account
- Request payment
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”).