Tax-Deferred Retirement Plan (TDR): Contributions
Under the TDR, you will receive Basic contributions from the University, whether or
not you choose to contribute your own money. These contributions are a percentage of
your base salary based on your age as of January 1 of each year. Then, if you choose to
make your own contributions to your account, the University will provide Matching
contributions up to 5% of your base salary (subject to Internal Revenue Code
limitations). The chart below details the contribution schedule under the TDR.
|
Up to 30
|
1.5%
|
$-for-$ match on employee contributions up to 5%
|
6.5%
|
11.5%
|
|
30 - 39
|
3%
|
8%
|
13%
|
|
40 and over
|
4%
|
9%
|
14%
|
Your contributions are made on a pre-tax basis from your paycheck*. In addition,
all contributions (from both you and the University) are made on a tax-deferred
basis. This means that you do not pay taxes on the contributions or any investment
earnings until you actually take the money out of your account.
*You may make after-tax contributions if desired. Contact the Retirement
Call Center at 1-877-PENN-RET.
Please note that you may supplement the TDR by making additional tax-deferred
contributions through the Supplemental Retirement Annuity
(SRA).