Contributory Retirement Plan (CRP)
Download the CRP Summary Plan Description for detailed information about the benefits available to you.
The Contributory Retirement Plan (CRP) is a 403(b) defined contribution plan that provides benefits through retirement savings accounts. Under CRP, you establish an account into which both you and the University contribute a percentage of your pay each pay period. The University contributes 8% of your compensation and you contribute 5% by payroll deduction. These contributions and their investment earnings make up your retirement savings account from which you can draw retirement income.
CRP is mandatory upon appointment for full-time faculty and full-time Other Academic Appointees (OAA) without regard to salary. It is mandatory upon hire for highly compensated staff. For calendar year 2016, a staff employee will be considered "highly compensated" if his or her benefit base salary is at least $120,000. For part-time, benefits-eligible faculty and OAA, CRP is mandatory upon completion of one year of service in the position. Laboratory School Teachers participate in CRP after one year of service in accordance with their union contract.
Participant Directed Investments
You may direct the investment of both the University's and your own contributions among the investment options offered by TIAA and Vanguard. Because participation is a condition of employment for all who are eligible, enrollment automatically occurs as soon as the eligibility requirements are satisfied. While enrollment is automatic, we encourage you to select a vendor by logging into Workday. TIAA and/or Vanguard enrollment forms may also be completed:
- Should you wish to invest your CRP account with Vanguard, you must update your record by logging into Workday with your CNetID and password. If you do not timely designate an investment carrier by logging into Workday, your CRP account will be invested, by default, in the age-appropriate TIAA Lifecycle Fund.
- If you designate TIAA and/or Vanguard to hold your CRP contributions but you do not specify the particular funds in which you want to invest, your contributions will be directed to the age-appropriate TIAA Lifecycle Fund or Vanguard Target Retirement Fund (as applicable). If you would like to change your fund selection, you may do so by contacting the investment company directly.
- It is important that you designate your primary and contingent beneficiaries to receive your CRP assets in the event of your death.
Contributions and Earnings are Tax-Deferred
All amounts held in your retirement savings account are tax-deferred. This means you pay no income taxes on your CRP benefits until you receive payments from the plan.
You are always fully vested in your own contributions and any earnings thereon. You will be fully vested in the University's contributions after completing three years of service.
Federal law limits the amount of your compensation that can be used to determine your CRP contributions. For calendar year 2016, both the University's 8% and your 5% contributions will stop when your year-to-date earnings reach the annual compensation limit of $265,000. Your CRP contributions will automatically begin again each January 1st.
Federal law also limits the aggregate amount that can be contributed to your CRP and Supplemental Retirement Program (SRP) accounts each calendar year. For 2016, the sum of :
- The University's contributions to your CRP account,
- Your own contributions to your CRP account, and
- Your contributions to your SRP account
cannot exceed $53,000.
Note that these limits may change annually.
For more information, please refer to the Contributory Retirement Plan Summary Plan Description.