Tax-Deferred Annuity Plan
Eligibility
The below populations are eligible for this benefit:
- Full-time faculty members
- Full-time administrative staff
- Part-time administrative staff who are scheduled to work 20 hours or more per week
- Part-time faculty members
NOTE: New employees will be automatically enrolled. See Enrollment below for details.
Overview
The New School offers one contributory retirement plan - the Tax Deferred Annuity (TDA) Plan - administered through TIAA. Detailed plan information may be found in the attached Summary Plan Description (SPD).
Retirement - SPD.pdf
Enrollment
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 (QDIA), described below. 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.
Once enrolled in the Tax Deferred Annuity plan, you can access your account online or call the TIAA Telephone Counseling Center at 800.842.2252 for account information. You can meet with a TIAA consultant for an individual counseling session on campus by calling 800.732.8353 to schedule an appointment. TIAA’s live webinars can also help you stay on track for meeting your financial goals; reserve your spot today at TIAA.org/webinars.
Contributions
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 2024 is $23,000. Employees age 50 and older (and those who will attain age 50 by December 31) are eligible to contribute an additional $7,500 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.
Managing Contributions
You are eligible to make voluntary contributions to the 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, including if you previously declined automatic enrollment. Your enrollment or change will take effect in the pay period following the date you submit the benefit event through MyDay.
Investment Options
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 (QDIA) (attached below). This TIAA Lifecycle Fund, also known as a Target-Date Fund, assumes your expected year of retirement is age 65. Review the below Lifecycle Funds fact sheet 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.
Retirement - QDIA Notice 9.2016.pdf
Retirement - Lifecycle Funds Fact Sheet 12.31.17.pdf
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. Review the below/attached for additional information.
Retirement - Self-Directed Brokerage Account.pdf
Beneficiaries
See * Retirement Plans Overview for info on designating a beneficiary.
Additional Retirement Resources
Return to * Retirement Plans Overview.
Related Links
- Benefits - Overview - summary of available university benefits
- Benefits - Terminology (Glossary)g