The College’s retirement program administered by TIAA-CREF is a popular benefit. Since contributions may be made on a tax-deferred basis, many faculty and staff use the retirement annuity to lower current taxes.
- Many participants put in more than the minimum 2% contribution required to maintain the College’s match.
- Salary reduction agreements can be changed 4 times per calendar year.
- 2008 maximum contributions levels are 100% of salary:
- Not to exceed $15,500 per year under age 50.
- Additional $5,000 per year if over age 50.
- Additional $3,000 per year with 15 years of service at Canisius College and employee has not exhausted this capability in the past. Inquire in Human Resources before exercising this option.
- Any College employee, even if not eligible for the College retirement annuity plan, may open a Supplemental Retirement Account (SRA) and tax-defer into it to the above limits.
- You will note that to increase your contributions by, say $25 per pay, does not decrease your take-home pay by $25 per pay, because you are also saving the taxes on $25.
- Most “painless” time to increase one’s retirement annuity participation is July 1st or September 1st, the time when the College is normally giving a raise. Re-direct the raise amount, or a large portion of it, to your retirement annuity.
- To see impact of increasing one’s contributions, go to www.paycheckcity.com. Have a current pay stub available to fill in the values requested. Change your SRA amount to a new figure. Paycheckcity.com will calculate your new take-home pay.