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Penn Increases its Basic Retirement plans!

December 15, 2022

Exciting news! The University of Pennsylvania is making alterations to their retirement plan. Effective January 1, 2023 Penn’s non-matching contributions to the Basic Plan will increase by one percentage point. If you’re eligible for the Basic Plan, Penn makes non-matching contributions for you based on your age. The increase will apply to all age ranges.

No additional steps are needed to receive this increase, you will see the increase in your Basic Plan Contributions reflected in your pay statements.

*The first weekly pay for this increase will be January 13, which is the first full pay for January.

 

Age 1/1/plan year   Basic Plan before 1/1/2023 Contributions after 1/1/23

 

Under age 30                            1.5%                                            2.5%

Age 30-39                                    3%                                               4%

Age 40 +                                      4%                                               5%

 

If your retirement savings aren’t where you would like them to be, the extra 1% to the Basic Plan can add up over the years.

If you’re contributing 5% to the Matching Plan, the additional Basic and Matching Plan contributions from Penn bring your total monthly contributions to 12.5% to 15%, depending on your age.

If you’re eligible for the Matching Plan but aren’t making employee contributions, or are contributing less than 5% and leaving some of Penn’s match dollars on the table, consider whether you could contribute more.

 

If you have not enrolled in Penn’s Retirement benefits and would like to, please check out the following:

Steps to Enroll

  1. Decide what percentage of your standard gross pay per pay period you’d like to contribute to the Matching or Supplemental retirement plan. If you’re thinking of contribution in terms of a flat dollar amount, here’s how to convert it to a percentage:
    (dollar amount of contribution) ÷ (standard gross pay per pay period) = percent
    example:
    $200 contribution ÷ $4,000 standard gross pay per pay period = 5% contribution
  2. Choose whether you want your contributions to be pre-tax or Roth. For help, you can schedule an appointment with a TIAA retirement plan counselor at tiaa.org/schedulenow-upenn.
  3. Let the plan choose your investment for you (the Vanguard Target Retirement Fund closest to the year you turn 65), or choose your own fund(s). A TIAA retirement plan counselor can help you with this, too.
  4. Go online to enroll:
    • Go to the Retirement Plans homepageand click on the “Enroll or Make Changes” link in the blue box.
    • At the top of the TIAA landing page, click on the Actions button.
    • In the Top Actions section on the next page, click on the Contributions button. One of the webpages will ask for an access code, but our Plan doesn’t use an access code. Disregard that and click on the yellow Manage My Contributions button.
    • Follow the prompts from there. For assistance, call the TIAA Retirement Call Center at 877-736-6738.