What to know:
- Retirement plan enhancements include an auto-advance adjustment, annual auto-enrollment and an annual increase program.
- Starting July 1, employees will have 35 days to opt out of these changes before they occur.
- At any time in the future, an employee can change their voluntary contribution on a prospective basis.
Vanderbilt University is introducing improvements to its retirement plan that aim to make saving for the future even easier. These enhancements, designed with the financial well-being of employees in mind, include an auto-advance adjustment, annual auto-enrollment and an annual increase program.
In January, Vanderbilt increased the retirement match to 6%. Vanderbilt will match up to 6% of retirement plan contributions as follows:
- Upon hire, full-time regular faculty and staff and part-time regular staff are automatically enrolled in the plan, with mandatory contributions of 3% of their pretax salary as a condition of employment.
- The contribution is matched 100% dollar-for-dollar by Vanderbilt.
- Vanderbilt will also match 3% of their voluntary contributions, dollar-for-dollar, when they voluntarily contribute 3% or more (up to the IRS allowable limit).
Auto-advance and auto-enrollment to 3%
In July of this year, as a one-time action, eligible employees who are voluntarily contributing at 1% or 2% will be automatically advanced to the 3% rate.
- For example, if an employee is only setting aside 1% of their salary toward retirement (not including the 3% mandatory contribution), Vanderbilt will automatically increase their voluntary contribution to 3%.
- Additionally, eligible employees who are not voluntarily contributing to the plan will be automatically enrolled at the 3% rate as well. These changes ensure that more employees are saving at the recommended level and taking advantage of the full retirement plan match. Starting on July 1, employees will have 35 days to opt out of the auto-advance or auto-enrollment before the new contribution percentage becomes effective in August. Instructions will be on netbenefits.com/vanderbilt.
Annual increase program
To further encourage saving for retirement, Vanderbilt is introducing the annual increase program. This program encourages employees to increase their contributions gradually.
- Each year on July 1, eligible employees who are voluntarily deferring between 1% and 6% will automatically have their contribution rate increased by 1%, up to a maximum of 7%.
- Starting on July 1, employees will have 35 days to opt out of the annual increase before the new contribution percentage becomes effective in August. Employees may opt out or change their voluntary contributions on netbenefits.com/vanderbilt.
If an employee wishes to change their voluntary contribution at any time in the future, they can make that change on a prospective basis by going to netbenefits.com/vanderbilt.
These retirement plan enhancements demonstrate the university’s commitment to making retirement savings more beneficial for its employees. By automating and optimizing contributions, offering an easy enrollment process and providing opportunities for gradual increases, Vanderbilt is empowering its employees to save effectively for their future.
