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The
Boston University Retirement Plan 1965
If
you participated in the Boston University Retirement Plan
1965 and did not choose the new plan formula, which was effective
on January 1, 1987, you will continue to contribute each payroll
period at the rate of 3% of the first $7,800 of your base
salary each year and 5% of your base salary above $7,800.
The
University will contribute as follows:
| When
Your Age Is… |
The
University Contributes… |
| Under
45 |
5%
of the first $7,800 of base salary PLUS 7% of your base
salary above $7,800 |
| 45
through 49 |
7%
of the first $7,800 of base salary PLUS 10% of your base
salary above $7,800 |
| 50
and above |
7.3%
of the first $7,800 of base salary PLUS 13% of your base
salary above $7,800 |
You
may file an election to switch to the new contribution formula
effective with the beginning of any calendar year. Once you
do so, you may not go back to the old (1965) contribution
formula again.
Whether
you are better off remaining under the 1965 formula or switching
to the new formula will depend on your personal circumstances.
You should assess your situation each year prior to January
1, when you can switch to the new plan formula. To help you
with your decision, the Benefits Section of the Office of Human Resources can provide you with the integration
level for the coming calendar year and can inform you
what the contribution rates would be for the year under the
1965 formula or the new formula based on your current base
salary.
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