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Benefits

The Brown University Retirement Plan

For Faculty and Exempt Employees Hired Before March 1, 2001

ELIGIBILITY

Brown University offers faculty and exempt employees hired before March 1, 2001 a defined contribution retirement plan. Faculty and exempt employees 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

As an eligible Plan participant, you must make a basic employee contribution of 2% of your retirement-eligible salary as a condition of employment, starting on the first day of the month following six full months of employment.

You will be eligible for a monthly University contribution to the Plan on your behalf, also determined as a percentage of your eligible salary, beginning the first of the month following completion of six months of employment. University Contributions vary depending upon your age and years of service. The following table illustrates the different levels of employee and University contributions:

Basic Employee Contribution Schedule
University Contributions
For Employees Below Age 55
University Contributions
For Employees Ages 55 Or Above (effective the first of the month following your 55th birthday)
2%
10%
12%

VESTING

As a participating eligible employee, you are fully and immediately vested in this Plan.

ADDITIONAL VOLUNTARY CONTRIBUTIONS

Eligible faculty and exempt employees may make additional voluntary contributions starting on the first day of the month following their date of employment. The minimum contribution is $200 per year. You may change your level of additional voluntary contributions as frequently as once per calendar quarter by completing an Agreement for Salary Reduction.

YOUR MAXIMUM ELECTIVE DEFERRAL

Your maximum voluntary contribution, otherwise known as the maximum elective deferral, is established by federal guidelines. Your mandatory employee contributions to the Plan (i.e., 2%) are not 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.

 * Retirement benefits for eligible employees may vary in several ways; percent time worked and employee group are primary factors. Certain groups of employees are ineligible to participate. These groups include 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.