When can I participate in the plan?
If you are an eligible employee, you may begin participation in the plan immediately upon hire. Benefit Eligible employees hire on or after January 1, 2015 will have 31 days from their date of hire to enroll or waive in the plan. If no election is made by the time the window closes, they will be defaulted into a 2% election with TIAA. There is no longer a one-year waiting period for university contributions or an age 25 requirement.
How do I know if I am an eligible employee?
All Drexel employees are eligible to defer pre-tax dollars out of their pay into the plan except for those in student employment, Co-op positions, temporary, casual and per diem employees. ANS employees are still able to maintain their contributions under the ANS Retirement Plan. Employees who are part of a Bargaining Unit are still able to maintain their contributions as well, without any match from the University.
Who is eligible for a Drexel contribution?
Full-time, benefit eligible professional staff and faculty and Part-time employees who work more than 1,000 hours per year are eligible for a Drexel contribution as long as they are contributing to the plan.
Does Drexel contribute to my retirement plan?
Yes, if eligible for a university contribution, the university will match any percent that you contribute, up to a maximum of 6% per pay. PLUS, the university will make an additional contribution based on age. If you are under 50, you will receive an additional 3% from the university. If you are over 50 you will receive an additional 5%.
How much must I contribute to the plan in order for Drexel to contribute?
Drexel University contributions begin when an employee commits to at least a 1% contribution.
How do I enroll?
Enrollments are managed through Drexel One. To enroll or make changes to your 403(b) contribution, please log into DrexelOne and navigate to the Employee Tab where you will see the Benefit Administration Channel. There you can click on the link for ‘403b Plan Management’.
The system will not allow me to enter in dollar amounts, why?
Since the plan is based on a match system, only full percentages are able to be entered as elections.
Do I have to choose one vendor only or can I contribute to multiple ones?
You are still able to choose multiple vendors if you wish. However, you will need to select only one of those vendors to receive the university contribution of either 3% or 5%, based on being under or over the age of 50. Please note that the funds available on each vendor’s platform are designed to offer the capability of creating a diversified portfolio with that vendor. If you contribute to multiple vendors you may be paying multiple administrative fees.
Am I required to contribute 6% or can I elect for a lower contribution?
If you are an eligible employee, the university will match your contributions dollar for dollar up to 6%. So you will receive the maximum benefit from the university should you contribute 6%. However, you are not required to contribute that much in order to participate. You can contribute as little as 1% per pay and still receive a match and university contribution. Because the new plan is based on a match system, contributions must be entered as percentages.
I have a dollar amount in mind that I want to contribute but I am not sure how to factor that into a percentage for my election. How can I do this?
To determine the dollar amount of percent elections simply take your full annual salary and divide by 12 (or 26 for bi-weekly, 52 for weekly). You will then want to multiply that amount by the percent you are trying to achieve.
For example: John wishes to contribute about $150 per pay. He is a monthly paid employee and his annual salary is $52,000.
$52,000/12 = $4,333.33 (monthly salary)
$4,333.33 x .03 = $129.99
$4,333.33 x .04 = $173.34
He will need to choose either 3% or 4% because based on his salary he is not able to contribute $150 evenly. He will need to contribute a little higher than his desired amount or a little lower.
May I contribute more than 6%, and, if so, how much more?
The amount that you can save is determined by federal law. Currently, the statutory limit (annual maximum) is $19,500. If you are over the age of 50, you may add $6,500 for a total limit of $26,000. When enrolling, you may elect to have the annual maximum, but you must figure out what percentage that will require you to use.
To select the annual maximum, use the percent of pay closest to $1,625 (which is $19,500/12) or $2,166.66 (which is $26,000/12). You can use a percent that will exceed the annual limit by the end of the year because the payroll system will automatically end your contribution when you reach the annual maximum, based on your age.
I was enrolled in a 403(b) plan with my prior employer. How does that change my 403(b) enrollment at Drexel?
If you were enrolled in a 403(b) retirement plan at any time in your employment history, you may want to roll your prior plan’s contributions into your new Drexel University Plan. If so, you will need to complete a Rollover form for your new Drexel University vendor and submit it to them for processing. You may need to work with your previous employer to complete this task.
Will my contributions ever be taxed?
Your contributions are deducted from your paycheck before federal taxes are calculated. When you retire and begin to receive distributions from your account, or when you remove funds from the plan after you leave Drexel, the funds will be taxed. There is a penalty of 10 percent if you remove funds before age 59 ½. After you leave Drexel, you may convert your 403(b) plan to an IRA (Individual Retirement Account) or another employer’s 403(b) or 401(k) plan without penalties or taxes. Then, when you are ready to remove the funds, they will be taxed.
Do I own the Drexel contribution or will I lose it if I leave Drexel?
The Drexel contribution is “vested” (you own it) from the first day the contribution goes into your plan.
Where may I invest my money?
Drexel works with three investment companies, TIAA, Fidelity and Vanguard. To learn more about these companies, please visit the retirement plan page.
How do I decide which company to choose?
It's a matter of personal preference. If you visit our main retirement plan page, you can find information including websites, phone numbers, and how to schedule an individual consultation appointment with each company.
Once I have decided on an investment company, must I continue to use that company?
You may move your funds from one of Drexel's investment companies to another at any time, with one exception: TIAA accumulations in the Basic Retirement Plan of less than $2,000 are not transferable.
You also have the option to change the funds to which you have allocated your money within the company you currently use. Please contact your investment company for more information about this.
Can I withdrawal funds from my account(s) while I am still employed?
Funds may be removed at time of termination with a 10 percent penalty if you are less than age 59 ½ or not officially retired.
If you are experiencing a severe financial hardship, you may be eligible for a Hardship Withdrawal on the funds you contributed to the plan. Employer contributions are not able eligible for distribution while still actively employed with the university. You will be penalized for an early withdrawal and the funds are taxable. Please note that if you take a hardship withdrawal, your participation in the plan must be suspended for six months, meaning you will not be able to contribute to the plan and will not receive any match or university contribution.
Loans are available only through TIAA. If you are a participant of TIAA, you may be eligible for a loan against your funds only (not the university contributions) - please contact TIAA directly to see if you are eligible: 800.842.2776. Please note that there is a limit to the number of active loans you may have at any one time.