Saving For Retirement
College-Paid Retirement Account
(Defined Contribution Plan)
The Davidson College Retirement Plan is a defined contribution plan that operates under Section 403(b) of the Internal Revenue Code. Davidson College has two retirement vendors, The Teachers Insurance and Annuities Association (TIAA) and Fidelity Investments.
Davidson College contributes 8.5 percent of the salary up to the Social Security wage base ($137,700 in 2020) and 12.5 percent over the Social Security wage base up to the Internal Revenue Code limit. The employee is 100 percent vested in this plan after three years of employment.
In addition, the college will contribute 9.5 percent instead of 8.5 percent if the employee contributes at least 1 percent of his or her annual salary to an Employee Contribution Account.
Employee Contribution Retirement Account
(Tax-Deferred Annuity Plan)
The Employee Contribution Account is an account into which an employee may make voluntary pre-tax contributions to save for retirement. As such, the total amount of contributions made for any year cannot exceed the limits imposed by section 415 and section 403(b) of the Internal Revenue Code.
You have the choice of opening an account with TIAA or Fidelity.
- College-Paid Defined Contribution Plan: Once an employee works in a regular position for Davidson College for one year (worked at least 1,000 hours/year), the college opens a college-paid plan for the employee. The employee is 100 percent vested in the college-paid annuity after three years of employment.
- If you were eligible to receive employer contributions under a 403(b) retirement plan maintained by a prior employer within the one-year period immediately preceding employment at Davidson College, the one year waiting period may be waived. To secure such a waiver you must complete the “Verification of 403(b) Retirement Plan Eligibility Form” and submit a pay stub or attestation from former employer.
- Davidson College Tax Deferred Annuity Plan: This plan allows employees to defer pretax money from their paychecks into a retirement account, and it is open to all employees. Participation may begin shortly after employment begins at Contact Human Resources for more information ab out beginning or changing a deferral into the TDA plan.
Davidson Contributions and Maximums
To calculate the amount that qualifies for the additional 1 percent per pay period, see the following examples:
|Annual Salary Examples||Calculation of 1 percent||Amount Per Pay Period|
|$20,000||$20,000 X .01=$200||Biweekly: $200/26=$7.69/period
|$30,000||$30,000 x .01=$300||Biweekly: $300/26=$11.54/period
Retirement Planning Resources
Access the Davidson College Retirement Planning website (both Fidelity and TIAA).
Representatives from our retirement vendors are on campus once a month to provide one on one appointments with employees.
Fidelity: To schedule an appointment with our representative, visit the Fidelity website or call 800-642-7131.
- TIAA: To schedule an appointment with our representative, visit the TIAA website or call 877-267-4505, ext. 0.
Documents And Forms
- 2014 Retirement Enhancement Presentation (PDF)
- Qualified Default Investment Alternative (QDIA) Annual Notice (PDF)