4 things you need to know:
- Effective Jan. 1, 2024, the university will match employees’ contributions to their retirement plan up to 6 percent, up from the previous 5 percent
- To take advantage of the increased match, you can visit www.netbenefits.com/vanderbilt to update your voluntary contribution
- New hires and rehires will be auto-enrolled in the retirement plan at the 6 percent match
- Employees may update their voluntary contribution percentage, investment elections or beneficiaries at any time
Vanderbilt University will make significant enhancements to its employee retirement plan beginning this holiday season, Chancellor Daniel Diermeier announced today. Effective Jan. 1, 2024, the university will match employees’ contributions to the plan up to 6 percent, as well as automatically enroll new hires and rehires in the plan at the 6 percent match.*
“With the support of Provost Raver and the school and college deans, the enhanced retirement plan will make Vanderbilt an even more attractive destination for talented individuals seeking to join our dynamic and inclusive community as well as incentivize current employees to remain at the university,” Diermeier said. “By investing in our faculty and staff members’ futures, we’re also ensuring Vanderbilt’s long-term sustainability and success.”
Read more about the enhancements below.
The employer match will increase from the current 5 percent to 6 percent.* This increase aligns with Vanderbilt’s commitment to foster a culture of financial well-being for its employees. The enhanced benefit has the potential to significantly improve employees’ financial futures, enabling them to accumulate savings for their retirement years.
Why Increased Match Is Important
Vanderbilt’s dollar-for-dollar retirement match—up to 6 percent,* for a total savings of 12 percent*—is added to employees’ retirement accounts to help them be prepared financially for retirement. This savings, combined with plan investments, continues to grow and allows employees to save more over time.
New Hires/Rehires Auto Enrollment
Since June 1, 2023, new full-time and part-time regular staff, as a condition of employment, have been automatically enrolled in the plan at the mandatory contribution rate of 3 percent. That 3 percent contribution is matched 100 percent, dollar for dollar, by Vanderbilt.
Starting Jan. 1, 2024, new hires and rehires also will be enrolled in pre-tax voluntary contributions of 3 percent, meaning they will be enrolled starting at 6 percent* of their pay. Vanderbilt also will match 3 percent of the voluntary contributions, dollar for dollar.
Employees are immediately vested 100 percent in their contributions and in the university’s matching contribution. This means employees immediately own their contributions and Vanderbilt’s contributions upon eligibility and may take them if or when their employment with Vanderbilt ends.
New hires and rehires may:
- Opt out of the 3 percent voluntary component of automatic enrollment, leaving them at 3 percent mandatory.
- Opt to contribute less than 3 percent voluntarily (they may elect to contribute 1 or 2 percent). The contribution is still matched 100 percent, dollar for dollar, by Vanderbilt.
- Opt to contribute 3 percent to keep the full match but change the contribution type from pre-tax to Roth (after-tax).
Choices 1 and 2 would mean that employees would be leaving some or all of Vanderbilt’s additional 3 percent matching contribution on the table.
“We recognize the importance of providing our employees with comprehensive benefits that support their long-term financial goals,” said Cleo Rucker, associate vice chancellor and chief human resources officer. “Enhancing our retirement plan with a higher employer match demonstrates our unwavering commitment to employees’ future financial security and overall well-being.”
Making Changes to Your Retirement Account
Employees may update their voluntary contribution percentage, investment elections or beneficiaries at any time. New investment elections and beneficiary designations are effective immediately. New voluntary contribution percentages will be effective within one to two payroll cycles.
To take advantage of the increased match, you can visit www.netbenefits.com/vanderbilt to update your voluntary contribution.
Fidelity, Vanderbilt’s retirement plan vendor, provides guidance to help employees plan for their futures. Schedule a meeting either one-on-one on campus or over the phone with a Fidelity Planning and Guidance Consultant. Visit www.netbenefits.com/vanderbilt (see step-by-step registration instructions) or call 800-642-7131 to schedule an appointment. Consultants can help employees learn about investment funds, discuss how much money they may need at retirement, review their current investments, learn how to initiate a rollover or discuss investment strategies.
*Up to the IRS limit.