Summary of Changes
- Duke contributions to the Duke Faculty and Staff Retirement Plan will be suspended from July 1, 2020, through June 30, 2021. Contributions will not be retroactively made up at a later date.
- Voluntary employee contributions will continue to be deducted unless the employee would like to make a change.
- Employees may still enroll for voluntary contributions in the Duke Faculty and Staff Retirement Plan during the Duke contribution suspension period. To enroll, go to Duke@Work self-service website.
- The Duke contribution will automatically resume on July 1, 2021 for employees eligible to receive Duke contributions.
- This suspension does not apply to the Employees’ Retirement Plan (ERP) nor the Commissioned Police Officers Plan (CPOP).
Questions and Answers
1. Who will be impacted by this suspension?
Monthly paid employees who are eligible to receive Duke’s contribution to the Duke Faculty and Staff Retirement Plan, including employees on disability and grandfathered employees are impacted by this suspension period.
Biweekly paid employees who are eligible for the Employees’ Retirement Plan are not impacted by this change.
2. When is Duke suspending the Duke contribution?
Duke will temporarily suspend the Duke contribution to the Duke Faculty and Staff Retirement Plan for a 12-month period from July 1, 2020 through June 30, 2021.
3. Do employees need to take any action regarding the suspension of Duke’s contribution when it occurs or when it resumes?
No action is required by the employee. The Duke contribution will automatically cease effective July 1, 2020 and will automatically resume for eligible faculty and staff once the suspension has ended.
4. Will voluntary contributions automatically be suspended once Duke suspends its contribution?
No, voluntary contributions will not be affected by the suspension of the Duke contribution.
5. Can employees enroll in the Duke Faculty and Staff Retirement Plan or continue to make changes to their voluntary contributions during this suspension?
Yes, employees can continue to enroll or make changes to their voluntary contributions through Duke@Work self-service website.
6. Can employees make additional contributions to make up for contributions not received from Duke?
The IRS limits how much can be contributed to the 403(b) Plan. The IRS deferral limits for 2020 are as follows:
|403(b) Elective Salary Deferral Limit||$19,500||This is the basic retirement plan deferral limit for each employee.|
|Additional Age 50 Catch-Up Limit||$6,500||Employees age 50 and over can contribute this amount to a retirement plan in addition to the 403(b) Elective Salary Deferral Limit.|
|Additional 403(b) Lifetime Catch-Up Limit||$3,000||This special retirement plan catch-up is for certain employees who have at least 15 years of service at Duke. Contact the HRIC at (919) 684-5600 to determine if you qualify.|
7. Will employees continue to accrue service for vesting purposes?
Yes, employees will continue to accrue service towards vesting and the current vesting rules will still apply.
8. Should employees continue to submit 403(b) prior employer 501c3 service credit waivers?
Yes, waivers will still be processed and implemented once the suspension period has ended.
9. Will the Duke contribution suspend for employees on disability?
Yes, employees on disability will have Duke’s contribution suspended. The Duke contribution will resume in July 2021
10. Are biweekly paid employees impacted by the suspension of the Duke contribution to the Duke Faculty and Staff Retirement Plan?
Voluntary contributions to the 403b Plan will continue for employees paid biweekly. The Employees’ Retirement Plan (ERP) is not impacted by this change.
11. Will contributions for the Commissioned Police Officers Plan (CPOP) be suspended?
No, at this time there are no changes to Duke’s contribution to the CPOP.