University Human Resources
Deferred Vesting Retirement Plan
Eligibility
Brown University offers eligible faculty and staff, including members of the Public Safety bargaining unit (hired after 7/20/01), a defined contribution retirement plan. Faculty and staff who are regularly scheduled to work 1,000 or more hours per year (i.e., 51% or more time) are generally considered eligible to participate in the plan.*
*Employees hired on or after March 1, 2001 and have prior service at Brown, please call the Benefits Office at 401-863-2141 to verify eligibility for the Deferred Vesting Retirement Plan.
Contributions
Eligible faculty and staff may make voluntary contributions starting on the first day of the month following their date of employment. The minimum contribution is $200 per year. University contributions begin after 6 months of employment, and are determined as a percentage of your eligible salary. University Contributions vary depending upon your age, years of service, and level of employee contribution. The following table illustrates the different levels of Employee and University contributions:
| Employee Contribution Schedule | University Contributions for Employees Below Age 55, or if Ages 55 or Above with Less Than 10 Years of Service | University Contributions for Employees Age 55 or Above and with 10 or More Years of Service |
|---|---|---|
| 0% but less than 1% | 6% | 8% |
| 1% but less than 2% | 7% | 9% |
| 2% or more | 8% | 10% |
You may change your level of contribution monthly in Workday by initiating a Retirement Savings Election event. Changes in your level of contribution may increase or decrease the contribution made by Brown University on your behalf. Please refer to the table above illustrating the different levels of Employee and University contributions.
Vesting
University contributions become vested (i.e., owned by you) over time subject to the following schedule:
| Completed Years of Service | Vested Percentage | Forfeitable Percentage |
|---|---|---|
| Less than 2 | 0% | 100% |
| 2 but less than 3 | 20% | 80% |
| 3 but less than 4 | 50% | 50% |
| 4 but less than 5 | 75% | 25% |
| 5 or more | 100% | 0% |
Maximum Elective Deferral
Your maximum voluntary contribution, otherwise known as the maximum elective deferral, is established by federal guidelines. Your matched Employee Contributions to the Plan (i.e., 1% or 2%, as listed in the tables above) are counted as part of your contribution limit.
Annual contribution limits as set by the IRS for the current year.
Please keep in mind that your employment status, percent time, salary and leaves of absence may affect the amount you can defer. Additionally, the annual limits apply to all retirement plans with elective deferrals in which you may be participating, such as another employer's 401(k) or 403(b) plans. If you are or will be saving for retirement through another personal plan or another employer's plan, you should let a Benefits Office representative know at your new hire orientation, so that we can include the appropriate information in your yearly calculation.
Hardship Withdrawals
If you or your beneficiary has an immediate and heavy financial need that cannot be satisfied by any other means, you may qualify for a withdrawal of your voluntary contributions due to a hardship. The Plan defines an “immediate and heavy” financial need as one or more of the following:
- Purchase of a primary residence or prevention of eviction from or foreclosure on a primary residence (not including normal monthly mortgage or rent payments)
- Post-secondary tuition for you or your dependent
- Unreimbursed medical bills
- Funeral expenses for your dependent
Other reasons for withdrawal such as payment of debts and home repairs will not be considered under the terms of the Plan. You must document both the nature and amount of the need and show that you have reasonably exhausted all other resources. If your application for a hardship withdrawal is approved, you are also permitted to withdraw an additional amount anticipated to cover the income taxes and penalty involved.
The information presented on this page represents a summary of the plan's eligibility and benefits; in the event of a conflict between the above information and the plan document, the plan document will apply.