Retirement Plan
Adjunct Faculty | Human Resources

Operational Procedures for Retirement Program Individual Custodial Account Agreements for Bargaining Unit Members of the ROOSEVELT ADJUNCT FACULTY ORGANIZATION (RAFO)

Effective September 1, 2003, Roosevelt University will make available to bargaining unit members of RAFO a supplemental 403(b) program. The 403(b) program will be made available through individual custodial accounts established with Fidelity Investments. All contributions to the individual custodial accounts will be made by participating bargaining unit members. This document describes the program guidelines and the procedures that bargaining unit members need to follow to participate in the program.

Guidelines

• Only bargaining unit members are eligible to participate.
• Only voluntary tax-deferred contributions are permitted.
• You may contribute on a tax-deferred basis, up to 25% of your union-negotiated per-course compensation, not to exceed an annual limit established by the IRS. The annual limit (including “catch-up” contributions) will also include all voluntary pre-tax contributions made to other 403(b) and 401(k) plans to which a member contributes for the year. IT IS YOUR RESPONSIBILITY TO MAKE SURE THAT YOUR TOTAL VOLUNTARY CONTRIBUTIONS DO NOT EXCEED THE IRS LIMITS IN ANY YEAR.
• Any pay other than per-course compensation is excluded for purposes of determining your contribution to the program.
• Participation in the program requires you to complete a salary reduction agreement with the University. The salary reduction agreement contains the IRS limits that apply. Entry dates for the program (dates on which you can begin participation) are September 1, February 1 and June 1 of any year. You must apply for participation in the program at least 10 days prior to the entry date.
• Changes to salary reduction agreements are permitted effective September 1, February 1 and June 1 of any year. A new salary reduction agreement reflecting any change must be given to the University at least 10 days prior to the date of the change.
• Revocation of a salary reduction agreement is permitted at any time.
• There are no loan provisions or in-service withdrawals available under the program.
• A participant may only receive a distribution of his or her benefits under the program after a “separation from service.” A participant will be considered separated from service upon an official permanent resignation from the University or when the employee is no longer a member of the bargaining unit. A participant is not required to withdraw his or her benefits when they incur a separation from service. A participant may continue to defer income taxes on his or her benefits by not withdrawing amounts from the account.
• A participant may roll over accounts eligible under the IRS code. University consent is not needed. Contact Fidelity directly for details.
• Contributions to the program will be invested through an individual custodial account established for each participant. The custodian for the accounts is Fidelity Management Trust Company of Boston, MA. Each participant may decide how his or her custodial account will be invested by choosing among various mutual funds offered by Fidelity Investments. Investment changes may be made by a participant directly with Fidelity in accordance with procedures established by Fidelity.

Enrollment Procedures

A bargaining unit member wishing to participate will follow these procedures to enroll.

• Obtain and carefully review the Fidelity Individual Custodial Account Agreement.
• Complete and sign the Fidelity Investments 403(b) Custodial Account Application.
• Complete and sign a Salary Reduction Agreement with the University.
• Return the application and salary reduction agreement to the Roosevelt University Human Resources Office by the deadline date for each open enrollment period.
• Roosevelt University will forward the application to Fidelity Investments.
• Based on the salary reduction agreement you have signed, Human Resources will direct the payroll office to reduce your salary by the appropriate amount each pay date and will send such contributions to Fidelity Investments once each month.

To initiate procedures to enroll contact Clara Gong, HR Generalist at cgong@roosevelt.edu or 312-341-4332.

HR 06/03 - Update 08/07

Human Resources | Benefits | Adjunct Faculty