Your Guide to the Boston University Retirement Savings Program

Boston University Guide to Retirement Program 1

Your Guide to the Boston University

Retirement Savings Program

2 Boston University Guide to Retirement Program

Boston University’s

Retirement Savings Program

Our Philosophy

Building a ﬁnancially secure future is a partnership between you and

Boston University. You have the opportunity to save for retirement

through the Boston University Retirement Savings Program, which

oers a convenient, tax-eective way to save and invest. The

University makes contributions to the Program to support your

ﬁnancial well-being.

The Boston University Retirement Savings Program

The Boston University Retirement Savings Program comprises

three plans, as shown below. Collectively, these plans are designed

to encourage personal savings and ensure equitable contributions

from BU across all age groups and salary levels.

2 The Boston University Retirement Savings Program

What’s Inside

What’s New ................................... 3

Take a Fresh Look at Your

BU Retirement Beneﬁts

Investing in Your Future ........... 4

Contributions

Choose Investments

That Are Right For You

Managing Your

Retirement Savings ................... 8

Track Your Progress Toward

Your Goals

Using Your Plans ......................... 9

Distributions, Withdrawals,

and Rollovers

Enrolling .......................................10

Considerations

I’m Ready to Enroll or

Make Changes

Take Action ................................... 11

Resources ..................................... 12

Attend a Meeting

Boston University, together with

Fidelity Investments, will be hosting

meetings for faculty and sta to

learn more about the Program and

the resources and tools available.

View the calendar

of meeting dates by visiting

http://www.bu.edu/hr/2018-ret/.

This guide describes the Boston University Retirement Savings

Program and changes to the BU Retirement Plan and the Supplemental

Retirement & Savings Plan eective January 1, 2018. Be sure to review

the Make It Work for You callouts marked by

, which highlight

key actions and considerations that will help you maximize your

retirement contributions and resources available at BU.

The BU Retirement

Plan, for University

contributions

The Supplemental

Retirement &

Savings Plan, for

your contributions

The 457(b)

Savings Plan, for

contributions for

highly paid faculty

and sta

BU Contributions

Your Contributions

Your Investment

Performance

Throughout the guide, use the

following key to distinguish

the dierent sources of

retirement income:

Boston University Guide to Retirement Program 3

What’s New

Take a Fresh Look at Your BU Retirement Beneﬁts

BU is pleased to oer the new Retirement Savings Program, which is designed to encourage personal

saving, distribute BU’s contribution more equitably across all age groups and salary levels, and pass IRS

nondiscrimination tests. New features include:

• Automatic enrollment for all eligible faculty and sta

• Boston University automatic core contributions that require no employee contribution

• Boston University matching contributions dollar for dollar, up to 3%

• Boston University transition contribution for employees who have attained age 50 on or before December

31, 2017, earn less than $180,000, and are enrolled in the BU Retirement Plan prior to December 31, 2017.

Through the combination of the three plans, the Boston University Retirement Savings Program is a powerful

tool to help you prepare for your future.

BU Retirement Plan: University Core Contributions

Regardless of whether you contribute, you will receive an automatic contribution from BU,

based on age and salary, after two years of eligible service.

Supplemental Retirement & Savings Plan: Your Contributions

Contribute 3% to receive BU’s full matching contribution. If you are not enrolled, you will be

auto-enrolled to contribute 3% of pay. You may contribute additional dollar amounts up to

the IRS maximum.

BU Retirement Plan: University Matching Contributions

After two years of eligible service, BU matches your contributions dollar for dollar, up to 3%

of pay.

The 457(b) Savings Plan

(Based on IRS guidelines, available only to a group of highly compensated employees.)

Faculty and sta earning $180,000 or more may enroll in this plan for additional tax-deferred

savings. Visit www.bu.edu/hr/ﬁnances/457b-savings-plan to learn more.

Your Investment Performance

You may invest your Retirement Savings Program balance in a variety of investment options.

There are no changes to your investment options for 2018.

Your BU Retirement Savings Account Balance

Make It Work for You: Time to Get Started

It’s never too early to begin planning for your retirement. Wherever you are in your career, don’t wait

until January 1 to actively contribute to your account or review your investment options—start saving

now! Review the materials in this guide and attend one of our meetings. For additional assistance

or to learn more, consider a one-on-one meeting with a Fidelity or Teachers Insurance and Annuity

Association (TIAA) representative. For appointments with Fidelity, call 1-800-642-7131 or visit

www.getguidance.ﬁdelity.com. For TIAA appointments, call 1-800-732-8353 or visit http://bit.ly/2xaZ8xk.

4 Boston University Guide to Retirement Program

Make It Work for You: Retirement Planning Tools

BU oers a variety of retirement planning tools, such as:

• Retirement Plan Contribution Calculator, which can help you determine how much you and BU will

contribute to your retirement plans

• NEW (coming in October 2017) myFiTage™, an online tool that measures your retirement resources

and needs, and expresses your progress in easy-to-remember terms like your FiT Age

• ESPlanner, a free software tool that helps you determine how much savings and life insurance you may need

Access these tools and other valuable resources at www.bu.edu/hr/2018-ret/.

Investing in Your Future

Contributions

The Boston University Retirement Savings Program is a powerful tool to help you achieve your long-term

ﬁnancial goals, including saving for retirement. BU contributes to your account, and you decide how much

you want to contribute. If you are not currently contributing, BU will automatically enroll you in a 3% tax-

deferred contribution beginning January 1, 2018. You may change or stop this contribution at any time.

You choose how to invest all contributions made to your account, including contributions made by BU.

Contributions from you and BU are always immediately and fully vested.

The chart below highlights the dierences between contributions to the Supplemental Retirement & Savings

Plan and the Boston University Retirement Plan. It is important to note, contributions you make yourself will

always be directed to the Supplemental Retirement & Savings Plan, and University contributions will always

be directed to the BU Retirement Plan.

Plan Eligibility Your Contribution BU’s Contribution

Supplemental

Retirement &

Savings Plan

All employees are eligible to

contribute to the Supplemental

Savings & Retirement Plan.

Only you contribute to the

Supplemental Savings &

Retirement Plan. All regular

employees working at least

50% of a full-time schedule

with at least a nine-month

assignment are auto-enrolled

to contribute 3% beginning

January 1, 2018. You may

increase the contribution to

the IRS maximum amount, or

reduce or opt out of making the

contribution.

N /A

Boston

University

Retirement

Plan

After two years of service, all

regular employees working

at least 50% of a full-time

schedule with at least a

nine-month assignment are

eligible.

N /A Only BU contributes to

the Boston University

Retirement Plan:

• Core contribution based on

age and salary

• Dollar-for-dollar matching

contribution, up to 3%

• Transition contribution, if you

are eligible

Boston University Guide to Retirement Program 5

Your Contribution Options

Don’t forget to carefully consider the tax status of your contributions. While University contributions

will always be tax-deferred, you have the option to make tax-deferred contributions, after-tax Roth

contributions, or both to your Supplemental Retirement & Savings Plan. These options used individually

or in combination can impact your income and tax obligation at retirement.

Your Contribution Options

Tax-deferred

Contributions

You won’t pay any taxes on the portion of pay you put into the plan (and their

investment earnings) until you receive a distribution from your account.

After-tax Roth

Contributions

(only through Fidelity)

Your contributions will be made on an after-tax basis. Earnings on your Roth

contributions are tax-free when withdrawn, as long as your withdrawal is qualiﬁed.

The following chart shows how BU’s contributions to the BU Retirement Plan vary by age and salary. You

will be automatically enrolled for these contributions after two years of eligible service:

Your Age University Core

Contribution

(Automatic; based on age

and salary)

University Matching

Contribution

(Assumes you contribute at

least 3% to the Supplemental

Retirement & Savings Plan)

Total Potential BU

Contribution

Less than age 45 4% on ﬁrst $60,000 and

6% over $60,000

Dollar for dollar, up to 3%

of pay

7% on ﬁrst $60,000 and

9% over $60,000

Age 45 to 49 6% on ﬁrst $60,000 and

8% over $60,000

9% on ﬁrst $60,000 and

11% over $60,000

Age 50 or above 7% on ﬁrst $60,000 and

9% over $60,000

10% on ﬁrst $60,000 and

12% over $60,000

Integration Level: $60,000

For 2018, the integration level is $60,000 for

the University core contributions. This value is

adjusted each calendar year based on the Wage

Base increase or the Consumer Price Index

(wages) increase, whichever is smaller.

Here’s how it works: Let’s say you are 50 years

old and earn $75,000. Assuming you contribute

at least 3% to the Supplemental Retirement &

Savings Plan, you will receive a 10% contribution

from the University for the ﬁrst $60,000 you

earn ($6,000). For the remaining $15,000 in

earnings above $60,000, you will receive a 12%

contribution ($1,800). In this example, your total

contribution from BU would be $7,800.

IRS Maximums

The annual amount you may contribute to

your Boston University Retirement Savings

Program is limited by the IRS. In 2017, you can

contribute up to $18,000 to the Supplemental

Retirement & Savings Plan. If you are age 50 or

older at year-end, you are eligible to make an

additional annual catch-up contribution up to

$6,000. If eligible, you may also contribute up

to $18,000 separately to the 457(b) Savings

Plan per calendar year. These limits are subject

to change annually.

If you contributed to another employer’s

retirement savings plan this calendar year,

those contributions count toward the annual

IRS contribution limit.

6 Boston University Guide to Retirement Program

Choose Investments That Are Right for You

To help you meet your retirement savings goals, BU oers a range of investment options through Fidelity and

TIAA. There will be no changes to your investment options for 2018. When you save through the Program,

you decide which investment fund, or combination of funds, suits your needs, based on your personal

investment strategy. You have full control over how to invest all contributions to your retirement accounts—

both the University’s contributions and your own. Your account balance grows with investment gains,

although your account is also subject to investment losses.

First, learn about the dierent investment options:

Investment Type Description Administrator

Vanguard Target

Retirement Funds

• Low-cost funds corresponding to a range of target retirement years or year;

you might choose to invest in the one that corresponds to the year in which

you will turn 65 or expect to start receiving beneﬁts

• Automatically rebalances between stocks and bonds to become more

conservative as you approach retirement

• If you do not actively elect investment options, you will default into an

age-appropriate Target Retirement Fund

Fidelity

Core Mutual

Funds

• Individual funds covering a range of investment classes, such as money

market funds, bonds, and stocks

• Allow you to create your own portfolio that ﬁts your investment goals

Fidelity

Core Annuity

Accounts

• Oer the opportunity to receive the assurance of a lifetime income in

retirement

• Choose an investment option that’s principal-protected or one that takes on

risk for greater potential rewards

TIAA

BrokerageLink® • Designed for investors who prefer to exercise more control over their

investments

• Provide access to additional mutual funds beyond those in the core mutual

fund lineup

• Present additional personal responsibility, risk, and fees

Fidelity

Boston University Guide to Retirement Program 7

Make It Work for You: Align Your Investments with Your Savings Goals

For a complete description of the Plan’s investment options and up-to-date performance information,

as well as planning tools to help you choose an appropriate mix, visit www.netbeneﬁts.com/bu or

www.tiaa.org/public/tcm/bostonuniversity/home.

Make It Work for You: myFiTage™

Get the help you need to plan for the

retirement you envision with myFiTage™, a

retirement planning platform with personal and

customized actions, plus a retirement readiness

assessment to calculate your FiT Age

. You

have options to tailor your calculation to your

own situation by adding retirement resources

in addition to the Boston University Retirement

Savings Program through the myFiTage™ web

portal. Plus, you do not have to make any

assumptions—myFiTage™ will do it for you.

Beginning in October 2017, access myFiTage™

at http://www.bu.edu/hr/bu-total-rewards/.

Investment Support

Both Fidelity and TIAA oer one-on-one investment support through on-campus appointments at

Boston University and over the phone. These are excellent opportunities for you to discuss investments,

allocations, transfers, tax-deferred savings, death beneﬁts, and retirement income options.

For more information or to schedule an on-campus appointment, contact:

Fidelity: Visit www.getguidance.ﬁdelity.com or call 1-800-642-7131.

TIAA: Visit http://www1.tiaa-cref.org/tcm/bostonuniversity/ or call 1-800-732-8353.

Select your fund, or funds, based on your

investment strategy.

You may choose funds from one or more of the

investment types described on the previous page,

and you may create an investment allocation

across both Fidelity and TIAA, if you wish. If you do

not make an investment election when you ﬁrst

enroll, your Plan contributions will automatically

be invested in a Vanguard Target Retirement

Fund that most closely corresponds to the year in

which you will turn age 65.

You will need to choose an investment mix that is

determined by your planned retirement date, your

tolerance for risk, and your ﬁnancial goals. You

may also need to rebalance your fund choices over

time to keep pace with changes to your personal

investment goals.

You can change your future investment elections

and transfer existing balances to another

investment type at any time.

8 Boston University Guide to Retirement Program

Make It Work for You: The BU Beneﬁts Center

Managing Your Retirement Savings

Track Your Progress Toward Your Goals

As a Plan participant, you can track and manage your Boston University Retirement Savings Program

accounts by logging on to Fidelity NetBeneﬁts

or by logging on to the TIAA website. Through either of these

services you can:

• Review your accounts and investment elections

• Change your investment elections

• Rebalance your portfolio

• Request loans and withdrawals

• Access the all-inclusive Planning & Guidance Center (oered through Fidelity), which allows you to estimate

how much income you may have for retirement, receive next steps, and build your retirement plan in minutes

• Access prior account rollover information

Visit Fidelity NetBeneﬁts

at www.netbeneﬁts.com/bu.

Visit TIAA at www.tiaa.org/public/tcm/bostonuniversity/home.

Through this tool, you will have the ability to:

• Enroll in the Supplemental Savings & Retirement Plan

• View and change amounts and tax-status of your contributions

• Find useful information to help you choose the investment funds that align with your risk tolerance

If you wish to enroll or make changes to your contributions eective before January 1, 2018,

please use Employee Self Service.

Beginning November 2017, the BU Beneﬁts Center will provide a simpliﬁed way to enroll in and

manage your contributions to the Supplemental Retirement & Savings Plan and the BU Retirement

Plan. Through the BU Beneﬁts Center, you will also have direct access to tools and resources

to help you learn about the retirement beneﬁts available to you and make decisions about your

contributions.

You must designate a beneﬁciary when you enroll in the Boston University Retirement Savings

Program to ensure that your account is passed on according to your wishes after your death. If

you die before your retirement income begins, the current value of your account balances in all

investment funds will be payable to your beneﬁciary under any of the payment options elected by

the beneﬁciary.

If you are married, your spouse is automatically your beneﬁciary unless he/she consents in

writing to your election of another beneﬁciary. This consent must be witnessed by a plan

representative or notarized by a notary public.

To designate a beneﬁciary for the ﬁrst time or to change your beneﬁciary, please complete a

Fidelity Beneﬁciary Designation form and/or a TIAA Beneﬁciary Designation form.

Make It Work for You: Remember to Name a Beneﬁciary

Boston University Guide to Retirement Program 9

Hardship Withdrawals

Although hardship withdrawals may be available

from the Supplemental Retirement & Savings Plan in

certain circumstances, tapping into your retirement

savings for non-retirement expenses may jeopardize

your reaching your long-term ﬁnancial goals. To

protect your retirement, keep your money in the plan.

Loans

You may borrow money against your Supplemental

Retirement & Savings Plan while you are employed

by the University, up to IRS maximums. No hardship

or proof of hardship is necessary to take a loan from

your account. However, taking a loan from your

retirement savings may put your ﬁnancial goals in

jeopardy.

For additional information about loan provisions,

contact Fidelity or TIAA.

Distributions and Rollovers to Another Plan

If your employment with Boston University ends at

any time before retirement, you will have the option

to receive payment of your accounts in full, defer

distribution to a later date, or roll over all or a portion

of your retirement savings into another tax-qualiﬁed

plan. You are responsible for paying taxes on your

distribution, unless you roll over the full amount to

another tax-qualiﬁed plan.

Rollovers from Another Employer’s Plan

If you participated in another employer’s retirement

plan, you may be able to move money—or roll it

over—from that plan to your BU Supplemental

Retirement & Savings Plan Account. You choose

how to invest your rollover contribution among the

Program’s available investment options. For more

information, visit http://www.bu.edu/hr/ﬁnances/

supplemental-retirement-savings-plan/, or contact

Fidelity or TIAA to initiate a rollover.

Using Your Plans

Withdrawals, Loans, Distributions, and Rollovers

Withdrawals

The Boston University Retirement Savings Program is intended to provide long-term savings opportunities for

your retirement years. However, while you are employed, there may be circumstances in which you may need

funds for other important ﬁnancial needs. If that important need occurs, you have options to access your funds.

The IRS places restrictions on withdrawals; therefore, you may not withdraw contributions made while you are

still employed by Boston University unless you meet certain criteria. The following table outlines the circumstances

in which withdrawals from your Boston University Retirement Savings Program may be permitted:

Account Plan Withdrawals Before Age

59½

Withdrawals Between

Ages 59½ and 65

Withdrawals

Between Ages

65 and 70½

Distributions at Age

70½ and Beyond



BU Retirement

Plan

Only upon termination of

employment

Only upon termination

of employment

Without

penalty

You must begin

receiving the minimum

distribution amount

(if you are no longer

employed by Boston

University)

 

Supplemental

Retirement &

Savings Plan

In situations of proven

ﬁnancial hardship,

subject to a tax penalty

(in addition to regular

income tax)

Without penalty



457(b)

Savings Plan

Permitted only upon termination of employment

More information

For more information regarding withdrawals, distributions, and your account following employment at the

University, visit the Boston University Human Resources website at www.bu.edu/hr/ﬁnances.

10 Boston University Guide to Retirement Program

How Much Should I Contribute?

More than any other factors, the amount you put

away for retirement and the age at which you begin

saving determine your future account balance.

• Start early. The earlier you begin saving for

retirement, the more compounding will work to

your advantage. Even if you can save only 1%, 2%,

or 3% of pay, the earlier your contributions begin,

the better.

• Maximize the full BU matching contribution.

BU matches your contributions dollar-for-dollar,

up to 3% of pay, once you satisfy the two-year

eligibility requirement. To receive the full matching

contribution, contribute at least 3% of your

eligible pay.

• Take advantage of ﬁnancial and retirement

planning resources. To help determine how much

you need to save for retirement and how much

you should save from each paycheck now, use the

ﬁnancial and retirement planning tools available

through BU, such as:

– NEW myFiTage™, a retirement readiness tool

(available October 2017)

– Retirement Plan Contribution Calculator

– Economic Security Planner (ESPlannerPLUS)

– Planning & Guidance Center (a retirement

planning tool oered through Fidelity)

To access these tools, as well as other

valuable retirement planning resources, visit

www.bu.edu/hr/ﬁnances/retirement-planning-

resources-tools/.

What Type of Contributions Should I Make?

You have the option to make tax-deferred

contributions, after-tax Roth contributions, or both

to your Supplemental Retirement & Savings Plan.

While there are many beneﬁts to tax-deferred

retirement contributions, after-tax Roth contributions

provide an opportunity to mitigate tax risks through

tax diversiﬁcation. Learn more about the types of

contributions you can make by referring to Investing

in Your Future: Contributions on page 4 of this

guide. For more assistance, schedule a one-on-one

appointment with Fidelity to discuss what type of

contribution may ﬁt your goals and needs.

How Should I Invest My Funds?

The Program oers a range of investment options to

suit your goals, time horizon, and risk tolerance by

including conservative, moderately conservative, and

moderately aggressive funds. The Program also oers

the Vanguard Target Retirement Funds for more

“hands-o” investors, which serves as the default

fund for both University and employee contributions.

What Are The Associated Fees?

Investments in the Boston University Retirement

Savings Program—like all mutual fund investments—

are subject to fees. That’s because investment fund

managers charge for the cost of managing the plan’s

investments. These fees are incorporated into the

fund’s price (or net asset value). BU strives to provide

funds with the lowest fees available.

The Fidelity and TIAA fee structures are shown below:

Account

Administrator

Associated Fee

Fidelity Fixed quarterly fee of $15.25,

deducted directly from your

account and reﬂected on your

account statements.

TIAA The fee is charged as a percentage

of your total TIAA assets and is

paid indirectly through what is

known as an expense ratio. This is

not a ﬁxed fee.

Enrolling

The Boston University Retirement Savings Program can help you reach your long-term savings goals. Before

enrolling in the Boston University Retirement Savings Program, take some time to consider the following:

Boston University Guide to Retirement Program 11

Take Action

Learn More

A complete description of the Program’s investment options, a summary of their performance and fees, as

well as planning tools to help you choose an appropriate mix, are available online at Fidelity NetBeneﬁts®

and TIAA:

Fidelity TIAA

To change your fund choices:

click the Quick Links drop-down menu, then select

Change Investments.

My Account, then select Change Investments.

To get help choosing your investments or schedule a one-on-one meeting:

Visit www.getguidance.ﬁdelity.com or call

1-800-642-7131.

Visit www.tiaa.org/public/tcm/bostonuniversity/

home or call 1-800-732-8353.

To access information about the funds and their fees:

click the Quick Links drop-down menu, then select

Investment Performance & Research.

Visit www.tiaa.org/public/oer/products/retirement-

plans/employer-sponsoredretirement-plans.

I’m Ready to Enroll or Make Changes

Remember, BU automatically contributes on your behalf to the Boston University Retirement Savings

Program, but if you would like to enroll in the Supplemental Retirement & Savings Plan or make changes,

visit the BU Beneﬁts Center by logging into Employee Self Service through the BUWorks portal. If you are

enrolling for the ﬁrst time, you will be able to:

• Elect your contribution amount

• Select tax-deferred and/or Roth contributions

• Select Fidelity and/or TIAA investment funds

• Designate beneﬁciaries

If you are already enrolled, you may use this site to change your contribution amount and make changes to

the tax status of your contributions. However, if you wish to make changes to your investment allocation,

you must log in to your Fidelity and/or TIAA accounts.

To enroll in the 457(b) Savings Plan, log in to your account at www.netbeneﬁts.com/bu and then choose

BU 457B PLAN from the home page.

To make updates to your beneﬁciary, complete:

• The Fidelity Beneﬁciary Form (www.bu.edu/hr/ﬁnances/supplemental-retirement-savings-plan/) or

• The TIAA Beneﬁciary Form (www.bu.edu/hr/documents/tiaa-change-beneﬁciary.pdf).

12 Boston University Guide to Retirement Program

Resources

You have access to a variety of online tools, resources, and calculators through BU, Fidelity, and TIAA. The

information available will help guide you as you make the decisions necessary to ensure your ﬁnancial future:

Resource Description Contact Information

Boston University Human Resources Additional information about your

retirement beneﬁts, as well as various

ﬁnancial planning tools.

[email protected]

617-353-2380

BU Beneﬁts Center

(available in November 2017)

Enroll in the Boston University

Retirement & Savings Program for

2018 through the BU Beneﬁts Center.

www.bu.edu/hr/2018-ret/

myFiTage™

(available in October 2017)

A retirement planning platform with

personal and customized actions and

a web-based modeling system.

Available through your Total Rewards

statement. Watch for additional

information.

Retirement Plan Contribution

Calculator

An online calculator that allows

you to estimate your total annual

retirement savings under the Boston

University Retirement Savings

Program.

www.bu.edu/hr/2018-ret/

Economic Security Planner A tool oered to you at no cost that

will help you set appropriate ﬁnancial

targets. Use it to calculate your

family’s highest sustainable living

standard, and the amount you need

to save and ensure that you maintain

that standard of living now and

throughout your retirement.

ESPlannerPLUS:

www.esplanner.com/esplannerplus

(contact BU Human Resources for

your coupon code)

Fidelity

• Manage your account, access

retirement planning tools and

resources, and select your

investments through Fidelity.

www.netbeneﬁts.com/bu

1-800-642-7131

• Schedule a one-on-one education

appointment with a Fidelity

representative to review your

investments.

www.getguidance.ﬁdelity.com

1-800-642-7131

TIAA Manage your account and elect

your investments through TIAA, or

schedule a one-on-one investment

education appointment with a TIAA

representative.

www.tiaa.org/public/tcm/

bostonuniversity/home

1-800-732-8353

This summary is intended to be an overview of key plan provisions of the Boston University Retirement Savings Program, including the BU Retirement Plan and

the Supplemental Retirement & Savings Plan. The plans are governed by formal plan documents, and, in the event of any conﬂict, the formal plan documents will

control. BU reserves the right to amend or terminate any or all of the beneﬁt plans, in whole or in part, at any time. Participation in these plans does not create

any contractual or other right to receive any other beneﬁts, and your participation or projections do not constitute a condition or right of future employment.

The information contained herein has been provided by Boston University and is solely the responsibility of Boston University.