Monday, December 1, 2014
The new Lehigh University Retirement Plan, which launched in 2014, will be implemented over a four-year period. Calendar year 2015 is year two of the implementation and brings with it two important changes.
Increased Match For All Staff and Faculty
The new Lehigh Retirement Plan includes a matching incentive that is intended to encourage all employees to contribute toward their own retirement savings. The matching rate is one half percent for each one percent of income saved up to a specific limit. The matching limit is being phased in over the four-year implementation period. By the fourth year, up to 6 percent of your voluntary contribution will be matched by Lehigh at a rate of 50 percent, for a maximum Lehigh match of 3 percent.
Next year, the matching limit will move from three percent to four percent of income, meaning the maximum Lehigh match will be two percent. To maximize your match, you’ll need to increase your voluntary retirement contribution if you aren’t already contributing four percent or more.
For Staff and Faculty Age 30+ Employed at Lehigh Prior To January 1, 2014
The following change only affects employees age 30 and over whose first full time work day at Lehigh occurred prior to January 1, 2014:
As we told you during the introduction to the new retirement plan, Lehigh’s base contribution will be stepping down from 10 percent to 8 percent by the fourth year of the plan. The step down will take place at a rate of .5 percent per year. In 2014, the base rate moved to 9.5 percent. In 2015, that rate will move to 9 percent.
To learn more about the Lehigh University Retirement Plan, go to the HR Website and choose the page that applies to your employment status.