The Pratt employee retirement benefit is comprised of two 403(b) plans administered by TIAA-CREF (www.tiaa-cref.org):
a mandatory Retirement Plan requiring an employee contribution with a matching employer contribution; and
- a voluntary Supplemental Retirement Plan with no employer contribution.
Participating employees choose how to invest the funds in their retirement account by selecting among various investment options available through TIAA-CREF. All contributions are fully vested immediately. Contribution levels are subject to IRS limitations.
RETIREMENT PLAN/MATCHING CONTRIBUTION
The following classifications of employees are eligible for the Retirement Plan:
- Regular full-time administrator (i.e. non bargaining unit)
- Regular full-time faculty (represented by UFCT Local 1460)
- Regular full-time clerical and technical employees (represented by OPEIU, Local 153)
Employees must complete two years of employment with Pratt Institute and be at least 21 years of age prior to becoming eligible for participation. However, prior employment in an institution of higher education may be substituted for part or all of the two year period. Participation is mandatory for eligible employees following two years of employment at Pratt.
Union Pension Plans
Employees in the following classifications are eligible for a retirement or pension benefit through the respective unions, to which Pratt contributes, as provided in the relevant collective bargaining agreement, and are therefore not eligible for the Pratt Retirement Plan.
- Full-time security officers (represented by OPEIU, Local 153)
- Full-time Facilities employees (represented by NCFO, Local 311)
- Full-time Facilities employees at 215 Willoughby (represented by SEIU Local 32BJ)
Participating employees contribute 5% of salary through a pre-tax payroll deduction to the Retirement Plan.
Pratt contributes a matching contribution to the Retirement Plan. The amount of the employer contribution varies depending on the employee classification.
Administrators (i.e. non bargaining unit) receive a 5% matching employer contribution.
Employer contributions for faculty and clerical and technical employees are established within the respective collective bargaining agreement. The current collective bargaining agreements proved for employer contributions as follows:
The Clerical and Technical/OPEIU Local 153 CBA expired 6/30/09 and provided for the following employer contributions:
- 1st year: 5%
- 2nd year 7%
- 3rd year 5%
- 4th year 5%
The union and employer are currently in negotiations for a successor agreement.
The Faculty/UFCT Local 1460 CBA, effective 9/1/07 through 8/31/11 provides for the following employer contributions:
- 1st year: 7%
- 2nd year 7%
- 3rd year 5%
4th year 7%
SUPPLEMENTAL RETIREMENT PLAN/NO MATCHING CONTRIBUTION
All employees, including part-time, are eligible to participate in the supplemental retirement plan, regardless of employee classification. The supplemental retirement plan allows employees to contribute to their retirement savings through a pre-tax payroll deduction. Participation in the supplemental plan is voluntary. Employees ineligible for the mandatory retirement plan described above, due to employee classification or years of service, may nonetheless contribute to the supplemental plan. Eligible employees participating in the mandatory retirement plan described above may also contribute to the supplemental plan in addition to their mandatory contributions.
DISTRIBUTION OF FUNDS
Employees may choose from a number of distribution options available from TIAA-CREF upon retirement or termination of Pratt employment. Limited distribution options are available to full-time faculty who opt for the Pre-Retirement reduced workload under the UFCT Local 1460 collective bargaining agreement.
Participating employees may be eligible for loans from their retirement accounts subject to certain restrictions contained in the plans. More detailed information is available from the Benefits Office or on www.tiaa-cref.org.
RETIREE MEDICAL COVERAGE
Retiree medical coverage is offered as an additional benefit to Pratt employees in recognition of extended service with the Institute. Employees who retire from Pratt employment with at least 10 years of continuous service and who are a minimum of 62 years of age may be eligible for retiree medical coverage. Retiree medical coverage operates essentially as a continuation of the active employee plans subject to certain restrictions.