Retirement Program
Human Resources Policy: 30.004Brown contributes a percentage of eligible employees' base salaries to retirement accounts. Employees can choose to have their retirement money deposited into a selection of funds offered through the University. Taxes on such money and associated earnings are deferred.
Eligibility for Retirement Contributions
Eligible employees receive Brown's retirement contributions starting the first of the month following six full months of employment.
Brown Contributions to Employee Retirement Accounts
Eligible employees hired before March 1, 2001 are required, as a condition of employment, to contribute at least 2% (mandatory contribution) of their salary to their retirement accounts starting the first of the month following six full months of employment. Brown contributes 8% of salary to the retirement accounts of employees working in nonexempt positions, and 10% of salary to employees working in exempt positions. Employees age 55 or older receive a 2% increase in their Brown contributions. Employees are immediately vested (i.e., have ownership rights) in their Brown contributions.
For eligible employees hired on or after March 1, 2001, Brown contributes 6%, 7%, or 8% of salary to their retirement accounts (depending upon their percentage of voluntary contributions as described below) starting the first of the month following six full months of employment. Employees age 55 or older, with 10 or more years of service will receive a 2% increase in their Brown contributions. Employees become vested in their Brown contributions over time.
Brown's retirement contributions are deposited into the currently offered funds of employees' choosing.
Voluntary Contributions to Employee Retirement Funds
Eligible employees may voluntarily contribute as little as $200 per year or as much as the annual limit established by the Internal Revenue Service. Employees may begin making voluntary contributions as early as the first of the month following their date of hire. For eligible employees hired on or after March 1, 2001, their University contribution to retirement will depend on the level of employee (voluntary) contribution. Employees who contribute two percent will receive an eight percent University contribution; those who contribute one percent will receive seven percent from the University; and those who choose to make no contribution will receive six percent. Please contact the Benefits Office for more information on determining and changing the amount of voluntary contributions.
Break in Service Rules
Employees who end their Brown employment and are subsequently rehired in a position eligible for retirement plan participation, will be subject to certain break in service rules. Depending upon the employee's date(s) of hire, prior service, and duration of the break, these rules will determine which retirement plan will be applicable to them, as well as related issues such as vesting and eligibility waiting periods.
Retirement Funds Offered Through Brown
Brown University offers a wide variety of choices for investment of employees' retirement money. The University is not permitted to give investment advice and does not guarantee interest on money invested or the preservation of principal. Certain restrictions govern withdrawals and transfers for each retirement carrier and some carriers charge annual management fees.