Salary Deferral Retirement Plans

 

Purpose

Salary-based elective deferral retirement plans are one piece of an overall compensation and benefits package whose purpose is to positively impact the financial/personal wellness, morale, performance, and retention of employees.

 

Statement

Bargaining Unit Employees

Pay provisions and investment-based retirement benefits for bargaining unit employees are subject to their respective collective bargaining agreements, and shall be governed by those agreements.

Eligibility, Contributions, and Plan Administration

• Eligibility and Plan Options
  • All LBCC employees, except work-study students, regardless of eligibility for College contributions, may avail themselves of the established LBCC retirement plans; a 403(b) tax sheltered annuity (TSA), or the Oregon Savings Growth Plan (OSGP) Roth, 457(b) account.
  • Annually renewable management, exempt, and confidential employees are eligible to invest their own funds as well as College contributions as outlined below.
• College Contributions
  • Annually renewable management, exempt, and confidential employees shall receive an annual College contribution of $2,400 (paid in $200.00 monthly installments) for a 1.0 FTE. Employees working less than 1.0 FTE will receive contributions on a prorated basis. Contributions are eligible to begin when hired into a qualifying position with the College. These contributions may in turn either be initially invested into an eligible retirement plan or taken as taxable salary. Whichever choice an employee makes, the level of the College contribution shall be separate from base salary and shall remain fixed on a year-to-year basis.
• Administration
  • In the event that an employee chooses to invest the allotted dollars as contributions into either the TSA or the OSGP will be made on a monthly basis. To initiate the investment process, eligible employees must establish their TSA or OSGP account with the College’s approved vendors. The College will provide a listing of these providers. In the event that the employee does not establish a viable account within sixty (60) calendar days of initial eligibility, the contribution will default into taxable income for the employee, where it will remain until such a time that the employee chooses to establish a viable retirement account.
  • If an eligible employee wishes to take the annual contribution as taxable income, they must notify Human Resources in writing and the contribution will be added to the employee’s monthly paycheck in the form of gross wages in addition to their base salary.
  • In the event that an employee’s position as annually renewable management/exempt, or confidential changes to an ineligible position their employer contributions will cease. The employee may still make their own plan contributions if they so choose.
  • Changes to the designation of the college contribution may be made or at the start of any given calendar month. Eligible employees may re-designate the college contribution at their discretion within their personal WebRunner account. Contact Human Resources for details or questions.

 

 

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