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myHR: January 21, 2015

Before You Borrow Against Retirement

iStock_000009466746Large-iouIf you’re facing extra expenses, you may be tempted to borrow against your 403(b) or other retirement savings account. After all, it’s like borrowing money from yourself, right? Actually, it may not be as simple as that. According to a recent TIAA-CREF survey, most people who borrowed from their retirement account regret doing it or would not do it again. So before you write a retirement I.O.U., consider the risks and alternatives carefully.

Risks
By borrowing against your retirement account, you miss out on two major advantages to workplace retirement plans: tax-deferred compounding of your money and tax-deductible contributions. Even if you pay yourself back with interest, that interest is paid with after-tax dollars. Also, it will be harder for you to make new contributions while you're repaying your old loan. Sadly, many people wind up not repaying themselves at all. If you leave your job, you may face additional penalties.


Alternatives
While borrowing against your 403(b) is less expensive than cash advances or other high-interest debt, there are other choices that might be better for your financial future. You may want to explore alternatives before you decide. TIAA-CREF’s Advice and Guidance website lists some of the possibilities.

These alternatives may not be appropriate or available in all situations. A professional financial advisor at your Penn retirement carrier can help you understand your personal options. Contact TIAA-CREF or Vanguard for free, confidential, one-on-one retirement counseling.

Gateway to Essential Information for New Faculty and Staff

iStock_000009611000Large-gateThere’s a lot to do and learn when you’re new to Penn. To help ease that process, Human Resources today launched the New Faculty and Staff Member Portal. The website gathers in one place the forms, information and resources that new faculty and staff need and want during their first weeks of work.

The site is organized into five main categories, with each section providing links to specific programs and offerings. Here’s a sample of what you’ll find:

New Faculty and Staff Member Essentials – Learn the basics of working at Penn, including how to obtain a PennKey, get paid, request time off, set up telephone and voicemail, and get around campus.

Benefits – Compare health, dental, and vision benefit plans. Quickly find information on retirement savings plans, tuition benefits, and career development. Explore the many other ways Penn supports faculty and staff, from adoption assistance to flexible work options to wellness workshops. Also discover special deals and discounts on a variety of products and services.

Policies and Compliance – Link to University policies and the Human Resources Policy Manual, as well as critical information on institutional compliance.

Departments and Resources – Know where to go and who to call when you have questions or need help with issues related to Human Resources, Public Safety, Information Systems and Computing, Environmental Health and Radiation Safety, Office of the Ombudsman, Office of Affirmative Action and Equal Opportunity Programs, and Office of Research Services.

Get to Know Penn – Learn more about Penn’s history, leadership, people, and campus. Make the most of Penn’s resources and become a part of the community by discovering things to do, places to go, and organizations to join.

Learning and Education offers the free, half-day New Staff Orientation, which covers these benefits and programs, but not all new faculty or staff are able to attend. The portal helps ensure they can easily access this valuable information. In fact, anyone with a PennKey can use the portal, making it a handy resource for the whole Penn community.

If you’re a new faculty or staff member, or if you’ve just hired someone, visit the New Faculty and Staff Member portal. You can also find a link to the portal on the Human Resources homepage and Resources and Support page. To learn more about New Staff Orientation, visit Knowledge Link or contact L&E’s Training and Development Consultant.  

Did You Know?

Your work group can get help dealing with a traumatic event through Penn’s Employee Assistance Program (EAP). EAP offers services to help support coworkers following a death, divorce or other loss. Managers can request this support by calling 1-888-321-4433, or visit the Management Support page for more information.