Employee Handbook

11.11 Retirement Plan

Macalester Retirement Contribution

All employees (exclusive of members of collective bargaining units) who have completed one year of eligibility service and are appointed to work 1,000 or more hours of service per year are eligible to receive Macalester's contribution to their retirement on the first day of the following quarter (January 1, April 1, July 1, or October 1). The one year waiting period is waived for any eligible employee who was employed by another college or university where the institution contributed to that employee's retirement plan, within six months prior to being employed by Macalester. Once eligibility requirements have been met, Macalester will begin contributing 10% of regular employment salary with immediate vesting. Macalester's contributions to your Retirement Plan cannot be transferred to separate employee contributions. With TIAA's transfer policy, however, a participant may only transfer 10% per year for 10 years from their TIAA accumulations for all contributions made in their "traditional fund" options. Transfers can take place only once per calendar year. Participants do not have access to retirement funds contributed by Macalester while actively employed by the College unless the participant is at least age 59 1/2. Upon retirement or termination, participants may take cash distribution of up to 100% from their accounts. Exception: Dollars invested in TIAA traditional would be paid out over a ten year period unless the total amount is less than $2,000. Macalester's retirement contributions are made on a pre-tax basis.

In response to financial challenges resulting from COVID-19, Macalester College has temporarily suspended the employer contribution to retirement accounts beginning August 1, 2020.

Employee Retirement Contributions

All employees are eligible to contribute to the Macalester Retirement Plan on a pre-tax or a post-tax basis starting the first day of any month or immediately upon beginning employment at Macalester. There is no waiting period and all contributions are made by the participant. Participants may contribute any amount up to his/her individual IRS annual maximum. The individual maximum is based on age, length of service and salary. The minimum annual contribution required is $200. Annual employee maximum contribution limits include combined limits between the pre-tax and post-tax contributions. Macalester retirement contributions do not count towards the annual employee contribution limits. Choices regarding available funds and their allocation are the same as same as Macalester's contribution to retirement. Upon retirement or termination, participants may take cash distribution of up to 100% from their accounts. Exception: Dollars invested in TIAA traditional would be paid out over a ten year period unless the total amount is less than $2,000. Macalester's retirement contributions are made on a pre-tax basis.