UK Human Resources
UK's Retirement Savings Plan Mandatory 403(b)
What You Need to Know:
The University of Kentucky's Retirement Plan is designed to help you save and invest for your retirement. There are two carriers as options for where to invest your savings. Immediate advantages are that your contributions are set aside from your paycheck before taxes are withheld and you are not taxed on contributions or investment earnings while those dollars remain in your plan account.
You are eligible to participate in the University of Kentucky's Retirement Plan if you are a regular full-time employee of the University. Your participation is mandatory unless you are under age 30 or if you are a Federal Civil Service or Federal employee.
Enrollment in the basic retirement plan must be done within the first 30 days of regular full-time service or the attainment of age 30. Beginning January 1, 2012, if you do not enroll, you will be automatically enrolled through a default enrollment on day 31 and your contributions will be made to TIAA-CREF's Lifecycle Index Fund.
You may participate in the Plan if you are under age 30, however, it is not mandatory until your 30th birthday. Participation is irrevocable once started.
The University of Kentucky's Retirement Plan is designed to help you save and invest for your retirement.
- You will contribute the required amount - 5% of your base salary - on a pre-tax basis.
- The University will contribute 10% of your base salary, a generous 200% match.
- You pay no federal, state, and in some cases, city tax on these amounts, until you begin receiving income from the Plan.
- To contribute on a tax-deferred basis, you must enter into a Salary Reduction Agreement with the University.
- The total amount you may tax-defer is limited by the Internal Revenue Code.
How It Works
The Plan offers two immediate advantages to participants:
Your contributions are set aside from your paycheck before taxes are withheld
- so you lower the amount of taxable income on your W-2, enjoying a tax break today while you save for tomorrow.
You are not taxed on contributions or investment earnings while those dollars remain in your plan account
- that account is not taxed until it is paid out.
Because contributions and investment earnings grow tax-sheltered, your savings grow and compound more quickly than in a bank savings account. Because retirement investment earnings compound on a tax-free basis, it is to your advantage to join the University's retirement plan as soon as you are eligible.
The University Retirement Plan offers two carriers from which to choose for investing your savings:
You may choose to invest among several investment options with both carriers.
- If hired on 7-1-2015 or after; you have investment options in Tier 1 Lifecycle Funds and Tier 2, Best-In-Class fund options.
- If hired prior to 7-1-2015 and enrolled in the plan, you may invest in Tiers 1 and 2 as well as all Fidelity and TIAA-CREF funds offered on their platforms. It is important to note that Tier 3 funds will not be monitored by the Retirement Plan Committee, whereas Tiers 1 and 2 investments are reviewed on a quarterly basis.
Employees hired on or after January 1, 2010 will be subject to a three-year vesting on the University’s contributions to the Plan. This means that your right to retirement income benefits provided as a match by the University cannot be revoked after three years of service.
Beneficiary Appointment and Changes
All beneficiary appointments and changes must be made through the Retirement carrier(s) of your choosing. The University does not make any changes or updates to your beneficiaries for your Retirement Plan. You may make changes through your online account on the carrier website, or by contacting the carrier by phone.