The retirement benefit to be received under this Plan is determined by a set formula which takes into account salary and years of participation in the plan and age at retirement.
Review the Defined Benefit Pension Plan Summary Plan Description (PDF Document). This is a summary of how the Non-Contributory Defined Benefit Pension Plan operates and describes your rights and obligations as a plan participant.
- The Noncontributory Defined Benefit Pension Plan is totally funded by University contributions to a trust fund held at BNY Mellon.
- The Plan does not require an employee contribution.
- Benefits are based upon a formula, not upon contributions or the plan's investment earnings. The University is responsible for contributing enough money to fund benefits.
- For each year of participation, a participant accrues a benefit, payable as a single life annuity, equal to 2.1% of his compensation not in excess of the Social Security Wage Base. The benefit is calculated (for all participants) as a single life annuity, although it may be converted to a joint and 100% survivor annuity for married participants.
There are two ways to collect this benefit:
- Retirement - Age 65 with 5 years of service.
- Early Retirement - A reduced benefit is available at Age 55 with 10 years of service.
The benefit is reduced by .6% for each month prior to age 65. (Ex. If a participant retired on his 64th birthday, his benefit would be reduced by 7.2%, or .6% for each of the 12 months prior to reaching age 65.)
The benefit is paid in one of two ways:
- Single Annuity
- Joint and Survivor Annuity - Annuity is reduced based on an actuarial equivalent using the difference in the participant and spouse/partner's age. The spouse would continue to receive the benefit in the event that the participant should die.
The Vesting Period under the Noncontributory Defined Benefit Pension Plan is five years with 1000 or more hours of participation in each calendar year.
Full time employees will complete 1,950 hours of service in a calendar year. (To accumulate 1000 hours, the staff participant must be at least 60% effort.)
If you are covered by this Plan and have never been enrolled in the Defined Contribution Program you may be eligible to take advantage of the Once in Career Change option:
Elect enrollment in the Defined Contribution Program.
Re-enrollment in the Defined Benefit Pension Plan is not permitted.