You are eligible to make voluntary contributions to The New School's Tax Deferred Annuity (TDA) plan beginning the first of the month following your hire date. You can make new TDA enrollments and changes to existing elections at any time through MyDay. Follow these instructions for making your change. Your election will take effect on the first of the month following the date you complete the Benefit Event process in MyDay.

A variety of investment choices are offered by TIAA. You can select investment options and name beneficiaries for this plan online directly with TIAA (click "Ready to Enroll"; then select "Tax-Deferred Annuity Plan"). If you do not make an investment choice, your contributions will be automatically invested in a qualified default investment alternative, which is a TIAA Lifecycle Fund, on the basis of your expected year of retirement, assuming age 65. Review the fact sheet for Lifecycle Funds and the investment performance and fee information. You can change your investment choices online with TIAA at any time by logging in to your account.

You can choose to contribute a percentage of your base annual salary or a flat dollar amount per paycheck. The maximum annual contribution as set by the IRS in 2020 is $19,500. Employees age 50 and older (and those who will attain age 50 by December 31) are eligible to contribute an additional $6,500 annually, as set by the IRS (referred to as the "Age 50+ Catch-Up"). If you have made or are making contributions to more than one employer's retirement plan, it is your responsibility to ensure that your total calendar year contributions do not exceed the maximum annual basic contribution amount and the Age 50+ Catch-Up contribution amount (if applicable).

Your election is a Salary Reduction Agreement and shall be legally binding and irrevocable with respect to amounts paid while the agreement is in effect. Generally, employees must pay Social Security and Medicare tax on 403(b) contributions that they make into their Tax Deferred Annuity Account. It is recommended that you consult a tax advisor before making your elections.

Automatic Enrollment of Newly Eligible Employees

Unless you decline to participate or otherwise make a separate election, you will be automatically enrolled in the TDA plan at a 3 percent contribution rate on the date indicated in the enrollment notification email you receive. If you are automatically enrolled and do not make an investment choice, contributions will be invested in a qualified default investment alternative (see information above). If you have been automatically enrolled and you subsequently decline the enrollment or make a new election, the change will take effect on the first of the month following your change request. If you decline the automatic enrollment, you can elect to contribute at any time in the future through MyDay by following these instructions.

The New School will make contributions to a retirement plan on your behalf once you have met both of the following requirements:

• You must be at least 25 years of age.
• You must have completed one year of service with the university.

Once the eligibility criteria are met, you begin to receive university contributions on the first of the month following completion of one full year of employment. Contributions will be made into a separate account (from the Tax Deferred Annuity plan described above) with TIAA.

Note

The one-year waiting period will be waived if you were previously employed at any time in your career by a 501(c)(3) organization, public college or university, not-for-profit private college or university, or governmental entity as a full-time employee for at least 12 consecutive months. It is your responsibility to request written verification from your previous employer stating

• Your employment start and end dates
• That you were considered a full-time employee for at least a 12-month period during your employment tenure
• That the employer is a 501(c)(3) organization, public college or university, not-for-profit private college or university, or governmental entity

Please note that if a letter is received and approved prior to your benefits' effective date, university contributions will begin on your benefits' effective date. Thereafter, university contributions will begin on the first day of the month following receipt and approval of the letter to waive the one-year waiting period. 

Once you are enrolled in the plan, the university will contribute 7 percent of your base annual salary if you are under the age of 40 or have less than six years of service. The contribution amount is 10 percent of your base annual salary if you are age 40 or older or if you have completed six or more years of service. Contributions are made to your account each pay period. Upon enrollment in the plan, you are 100 percent vested and have a nonforfeitable right to all contributions made to your account and all earnings. Your account grows on a tax-deferred basis until a distribution is made to you.

A variety of investment choices are offered by TIAA. Select investment options and name beneficiaries for this plan online directly with TIAA (click on "Ready to Enroll" then select "The New School Retirement Plan"). If you do not make an investment choice, your contributions will be automatically invested in a qualified default investment alternative, which is a TIAA Lifecycle Fund (multi-asset fund), on the basis of your expected year of retirement, assuming age 65. Review the fact sheet for Lifecycle Funds and the investment performance and fee information. You can change your investment choices at any time online with TIAA by logging into your account.

You have the option of opening a TIAA Self-Directed Brokerage Services Account within your retirement plan, giving you an opportunity to divide your retirement plan contributions among a variety of investment choices beyond the investments offered through The New School's plans.