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 ($126,200 in 2017) 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.
The Employee Contribution Account is an account into which an employee may make volutnary 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. To open an account with either, visit www.netbenefits.com/davidson.
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
Monthly: $300/12= $25/period
To access the Davidson College Retirement Planning website (both Fidelity and TIAA) go to www.netbenefits.com/davidson.
Representatives from our retirement vendors are on campus once a month to provide one on one appointments with employees.