Faculty and Administrators Retirement Plan (NDFA)

Last Updated 12/08
Applies to Administrators and Faculty  
Related Policies:

Policy 

The University of Notre Dame Defined Contribution Retirement Plan for Faculty and Administrators (NDFA) provides tax-deferred contributions to those eligible. Contributions are made to the plan by both the participant and the University and contributions are vested immediately.

Eligibility

Participation is mandatory for administrators and faculty working a minimum of 20 hours per week. There is a one-year wait for participation by newly hired administrators and faculty which is waived if the individual has a year of service at another educational institution or a not-for-profit research laboratory or a governmental research laboratory.

Definitions

  • Normal Retirement - age 65 with at least five years of service
  • Early Retirement - either age 55 with 15 years of service or age 62 with 10 years of service, whichever occurs first
  • Faculty Salary - academic year contract salary plus eligible summer salary
  • Administrator Salary - base annual salary
  • Tax Deferred - contributions which are not taxed when made, but are taxed when the benefit is received

Contributions

Participants contribute 5% of their regular salary through payroll deduction. The University contributes 10% of the individual's regular base salary. Regular salary means the contractual or base salary paid to you by the University and also includes certain summer salary for faculty. See the Summary Plan Description for more details.

Investment Options

Participants determine how contributions are allocated among many options offered by available investment vendors. The University does not offer investment advice and is not responsible for returns received based on the choices made by individual participants. Additional details and information on vendors and investment options is available at:

    http://www.nd.edu/~hr/benefits/retirement1.shtml     


Retirement Income Options

Participants are offered a number of payment options for receiving retirement income. Details are available in the Summary Plan Description.

All participants are asked to name a beneficiary when they become eligible to participate in the retirement plan. If married, under law the spouse must be a beneficiary of at least 50% of the account balance unless they sign a waiver. Beneficiary changes should be made through the selected investment vendor.

Employees nearing retirement age can request an estimate of their retirement benefits from the selected investment vendor. Contact numbers are available at:

    

http://www.nd.edu/~hr/benefits/retirement1.shtml

    

Death Benefits     

If a participant dies before beginning retirement income, the full current value of accumulations are payable as a death benefit to the beneficiary. The payment may be made in a number of different forms. Alternatively, surviving spouses may be able to keep the accumulation sheltered until the participant would have reached age 70 ½ or transfer the accumulation to an IRA in their own name.

Procedures

Enrollment

Information on participation and enrollment in the NDFA Retirement Plan is made available initially to new administrators and faculty at the time of their Orientation session with the University. Subsequent information and assistance is provided by the Office of Human Resources, as well as the particular investment vendor selected by the participant.

Enrollment requirements include the completion of the following: