Human Resources

403(b) Retirement Program

The University is committed to helping you achieve your personal and financial goals for retirement. Our 403(b) Retirement Plan is extremely competitive, providing an 8% or 10% SMU contribution, depending on your age, to supplement your 5% contribution to the Regular Retirement Plan.

The 403(b) has two components, the Regular Retirement Plan and the Supplemental Retirement Account. Here’s how they work…

Regular Retirement Plan

When you enroll in the Regular Retirement Plan you will contribute 5% of your base salary on a pre-tax basis. SMU will contribute 8% of your base salary though age 40. SMU’s contribution increases to 10%, effective on the first day of the month following your 41^st birthday.

Following are the eligibility rules for participation in the Regular Retirement Plan:

Ø You are eligible to participate as soon as you start working at SMU if you are a full-time employee and you are at least age 26.

Ø Part-time employees age 26 or older can begin participating after one year of employment.

Ø Participation in the Regular Retirement Plan is mandatory at age 36 (until age 60) if you have completed one year of employment.

Ø Temporary employees, Post-Doctoral Fellows and Adjunct Professors are not eligible to participate.

Supplemental Retirement Account

The second component of the SMU 403(b) Retirement Program is the Supplemental Retirement Account (SRA). The SRA is voluntary and funded entirely by your contributions, and you can participate at any age. Just like the Regular Retirement Plan, you have the option to defer paying taxes on the amounts you contribute – as well as any investment earnings – until you begin taking distributions when you retire.

Enrolling in the 403(b)

Enrolling in the 403(b) is easy but you have several decisions to make and forms to complete.

When you enroll…

Ø you will select Fidelity, Vanguard and/or TIAA-CREF to manage your 403(b) account(s).

Ø you will complete the SMU 403(b) Retirement Plan Enrollment Form to activate your 403(b) payroll deductions and SMU’s contributions. Using this form you will indicate the percentage of your contributions (and SMU's) that you wish to allocate to each company.

Ø you will also complete the application/enrollment form(s) for each investment company you choose. You will indicate the funds selected, provide beneficiary information, etc. Links to the forms, fund descriptions, and informational material specific to each investment company are provided below.

TIP: Many of us feel a bit overwhelmed when it comes to making investment decisions, or just don't have the time to effectively manage our investments. If you feel that way, you should consider the Fidelity Freedom Funds and/or the Vanguard Targeted Retirement Funds. Often referred to as "life-cycle" funds, they provide a balanced portfolio of investment funds geared toward the year you plan to retire. Your portfolio is regularly monitored and rebalanced by a professional investment manager. Click on Fidelity's Getting Started Brochure and Vanguard's Simplify Your Investment Decisions below for more information.

Ø both completed forms must be delivered to the Department of Human Resources with your other enrollment forms.

Ø pre-tax contributions to your 403(b) are subject to the IRS annual maximum. To determine how much you can contribute to your 403(b) accounts, refer to the 403(b) MaxCalc.

After enrolling…

Ø be sure to visit the website(s) of the investment company/companies you chose. You will be asked to register and once you do so, you will have 24/7 access to your personal account and current investment activity. You will also have access to information and interactive tools that will help you determine your retirement needs - and the steps you need to take to meet those needs and achieve your retirement goals.

Making Changes…

Ø you can change your investment funds at any time by contacting your investment company.

Ø If you wish to change or add a new investment company you must complete the 403(b) Retirement Plan Enrollment Form and the 403(b) Application (below) for the new investment company you have chosen. Send (PO Box 750232) or bring your completed forms to the Department of Human Resources in Expressway Tower, Suite 200.