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Benefits

The Deferred Vesting Retirement Plan

For Eligible Faculty and Non-Union Staff Hired On or After March 1, 2001 and
Eligible Members of the Public Safety Bargaining Unit Hired On or After July 20, 2001

ELIGIBILITY

Brown University offers eligible faculty and staff hired on or after March 1, 2001, and members of the Public Safety bargaining unit hired on or after July 20, 2001, a defined contribution retirement plan. However, if you are in one of these employee groups, were hired on or after the date specified for your group but had prior service at Brown, please call the Benefits Office at 401-863-2141 to verify your eligibility for the Deferred Vesting Retirement Plan.

Faculty and staff who are regularly scheduled to work 1,000 or more hours per year (i.e., 51% or more time) are generally considered eligible to participate in the plan. *

CONTRIBUTIONS

Eligible faculty and staff may make voluntary contributions starting on the first day of the month following their date of employment. The minimum contribution is $200 per year. University contributions begin after 6 months of employment and are determined as a percentage of your eligible salary. University contributions vary depending upon your age, years of service, and level of employee matching contribution. The following table illustrates the different levels of employee and University contributions:

Employee
Contribution Schedule
University Contributions
For Employees Below Age 55, or If Ages 55 Or Above With Less Than 10 Years Of Service
University Contributions
For Employees Ages 55
or Above And With 10 Or
More Years Of Service
0% but less than 1%
6%
8%
1% but less than 2%
7%
9%
2% or more
8%
10%

You may change your level of contribution as frequently as once per calendar quarter by completing an Agreement for Salary Reduction. Changes in your level of contribution may increase or decrease the contribution made by Brown University on your behalf. Please refer to the table above illustrating the different levels of Employee and University contributions.

VESTING

University contributions become vested (i.e., owned by you) over time subject to the following schedule:

Completed Years of Service
Vested Percentage
Forfeitable Percentage
Less than 2
0%
100%
2 but less than 3
20%
80%
3 but less than 4
50%
50%
4 but less than 5
75%
25%
5 or more
100%
0%

You are fully and immediately vested in your own Employee contributions, and such amounts are non-forfeitable.

YOUR MAXIMUM ELECTIVE DEFERRAL

Your maximum voluntary contribution, otherwise known as the maximum elective deferral, is established by federal guidelines. Your matched employee contributions to the Plan (i.e., 1% or 2%, as listed in the tables above) are counted as part of your contribution limit. For calendar year 2008, if you are under age 50, the maximum dollar limit for employee contributions is $15,500. If you are age 50 or older (on or before December 31, 2008) your dollar limit for employee contributions is $20,500. Click here for more details on the annual contribution limits as set by the IRS.

Please keep in mind that your employment status, percent time, salary, and leaves of absence may affect the amount you can defer. Additionally, the $15,500 or $20,500 limit applies to all retirement plans with elective deferrals in which you may be participating, such as another employer's 401(k) or 403(b) plans. If you are, or will be saving for retirement through another personal plan or another employer's plan, you should let a Benefits Office representative know at your new hire orientation, so that we can include the appropriate information in your Year 2008 calculation.

* Employees who have prior service with Brown University may be eligible for different retirement plan benefits. Retirement benefits for eligible employees may vary in several ways; percent time worked, employee group, and job title are primary factors. Certain groups of employees are ineligible to participate. These groups include visiting and adjunct faculty, postdoctoral fellows, student workers, and employees working on the limited duration payroll. Those who are ineligible to participate may be permitted to contribute pretax voluntary dollars to a retirement account. Please contact the Benefits Office at 401-863-2141 for additional details.

Note: The information presented above represents a summary of the plan's eligibility and benefits; in the event of a conflict between the above information and the plan document, the plan document will apply.