For each Plan Year
in which you are a participant and in which you have a Year of Participation,
the University will make a Retirement Contribution to the Plan for your
benefit equal to
- 9% of your Compensation
for the Plan Year, plus
- 5.7% of your
Compensation in excess of the Social Security Wage Base in effect
at the beginning of the Plan Year.
You will have a
Year of Participation when the University has determined that you have
completed, or will complete in such Plan Year at least 1,000 Hours of
Service (750 Hours of Service if your service is not credited on the
basis of actual hours worked).
compensation for the Plan Year ending June 30, 2003 is 90,000. The
University will make the following contribution to Jane's Retirement
of Jane's total compensation
$8,100 (.09 x $90,000)
of Jane's excess compensation
$290.70 ($90,000 -$84,900)($5,100 x .057)
The University will
calculate and make its contribution to the trust fund (via the funding
vehicles you have selected) each month, based on your Compensation paid
during that month. Such contributions will begin in the Plan Year when
the University has determined that you have met or will meet the requirements
for a Year of Participation described above. Any part of such contributions
for a Plan Year that are not contributed prior to making this determination
will be included in contributions made for that Plan Year after the
With the approval
of the Plan Administrator, a Fund Sponsor may accept a rollover of your
distribution from a prior employer's Eligible Employer Plan or from
a "conduit rollover IRA." Conduit rollover IRAs include only amounts
from another Eligible Employer Plan. You make rollover contributions
through either a direct rollover or a 60 day rollover:
- Direct rollover
- Your prior employer's Eligible Employer Plan or IRA provider must
make your distribution check payable directly to the Trustee.
- 60-day rollover
- You must make this rollover contribution within 60 days after you
receive payment from the Eligible Employer Plan or conduit rollover
IRA. When the distribution is initially made directly to you, 20%
of the total amount is withheld for federal income tax. You may add
the equivalent of this 20% to your rollover amount. You can recover
the 20% federal tax withholding when you file your income tax return.
In both cases, you
must submit proof that the rollover is from an Eligible Employer Plan
or conduit rollover IRA.
contributions may not be rolled from an IRA to the Plan. You should
consult your tax advisor to determine whether a Rollover Contribution
is in your best interest.
Your Rollover Contribution
will be placed in a separate account called your Rollover Account. Amounts
in this Account will be distributed at the same time as your other Plan
benefits are distributed. You may also request a distribution of all
or a portion of your Rollover Account not more than one time per Plan
Year, provided your spouse, if any, consents to the withdrawal.