Benefits FAQ: Retirement Plans
What is a 401(k) Plan? What is a 403(b) Plan? Which does Duke offer?
A 401(k) plan is a type of retirement plan offered by an employer under section 401(k) of the Internal Revenue Code. A 403(b) plan is a somewhat different type of retirement plan, which has many of the same features of a 401(k). Since Duke is a tax-exempt, non-profit organization and educational institution we can offer a 403(b) plan.
Does Duke contribute to my 403(b) retirement
plan?
Duke offers two different types of retirement plans. Eligibility for participation in these plans is determined by whether you are paid biweekly or monthly. Both plans provide a comparable retirement income.
- Biweekly paid staff are eligible for two Duke retirement plans - the Employees' Retirement Plan and the Duke Savings for Retirement Plan. First, the
Employees' Retirement Plan is a defined benefit pension plan paid for entirely by Duke. This plan does not contain individual accounts and the benefit is typically determined on a formula basis considering level of compensation at retirement and years of service. Second, the
Duke Savings for Retirement Plan is a defined contribution 403(b) plan funded by your voluntary pre-tax deductions. This plan does provide individual accounts for employees who contribute and this
retirement plan places the responsibility on the employee for the investment decisions.
- Faculty and monthly paid staff are eligible for the
Duke Faculty and Staff Retirement Plan. This plan is funded both by your pretax contributions and
Duke's contributions. Your retirement benefit will be based on 1) the amount you and Duke contribute, and 2) your investment decisions, which will be reflected in the final amount you have accumulated at retirement.
Does Duke contribute to my Employees' Retirement Plan?
The Employees' Retirement Plan (ERP) is paid for entirely by Duke. Biweekly
paid staff do not have to contribute to the plan.
What investment options are available under Duke's 403(b) retirement plan?
Duke offers plan participants a wide range of investment options. These include money market, bond, fixed investments, asset allocation funds, equity income funds and stock funds. There are over 300 funds to choose from. The
Investment Performance Summary lists these options by category of investment.
All of Duke's retirement plan providers provide automated toll-free telephone services to help you keep track of your retirement assets. You may also access your account on the
Investment Carriers page. Quarterly account statements are mailed to your home address from your investment carrier to help you monitor your retirement plan assets.
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