JHU is committed to helping you prioritize your financial well-being, including helping you reach your long-term financial goals. In line with this commitment, it is implementing two changes to the JHU 403(b) plans for 2025 to make it easier for employees to save for their futures. Both enhancements are voluntary but require different actions on your part (details below).
Automatic enrollment in 403(b) plans
Beginning Jan. 1, 2025, new hires and faculty and staff who are full-time and eligible but not currently enrolled will be automatically enrolled in a JHU 403(b) plan at a 3% pretax savings rate. Employees who are already participating in a 403(b) plan will not be affected by this change. This initiative aims to give everyone a strong start in saving for retirement. Retirement industry research indicates that too many Americans are not saving enough for retirement; however, when people participate in a retirement plan, they say they're more confident about their future financial security.
Anyone who is automatically enrolled in a plan will be invested in an age-based target-date fund that reflects a future date closest to when they'll be age 65. You can select a different investment option offered within your plan at any time. Learn more about the target-date funds and other investment options you can choose from here.
If you're automatically enrolled, your savings rate will increase each July to help you gradually increase how much you save on an annual basis, until you reach a 10% savings rate (unless you adjust it or opt out). So, for example, in July 2026 your savings rate would increase from 3% to 4%. TIAA will notify you before these increases take effect, and you will always have the opportunity to opt out or make adjustments.
If your financial situation doesn't allow you to participate in a 403(b) plan at this time but will later, you can enroll at any point during the year. Also, you can change how much you're saving at any time.
Timeline for changes
- Early November: TIAA will notify you if you're eligible to be automatically enrolled in a 403(b) plan. At that time, you will have the option to opt out; to do so, visit the TIAA website and submit your preferences by Tuesday, Dec. 31, 2024.
- Dec. 31, 2024: This is the deadline to opt out of automatic enrollment before the first paycheck deduction in January 2025.
- Jan. 15, 2025: The first 403(b) contribution will be deducted from your paycheck if you do not opt out.
- July 1, 2026: Your savings rate will increase automatically from 3% to 4% (and will increase every July by 1% until you reach a 10% savings rate).
Auto save program for contributions to 403(b) plans
If you already contribute to a 403(b) plan, you'll have an opportunity to grow your retirement savings through a program designed to help you gradually increase how much you save.
On Jan. 1, 2025, the university is launching an auto save program that allows you to boost your savings rate automatically on a schedule of your choice. You'll select both the amount (1%, 2%, or more) and the timing for your increases (annually, quarterly, or monthly). Automatic increases can help you grow your retirement savings steadily, until you reach your desired contribution rate.
To enroll in auto save, follow these steps and submit your preferences by Wednesday, Jan. 1, 2025—before your Jan. 15 paycheck.
Flexibility and control
Both the automatic enrollment and auto save programs are voluntary. That's why you can opt out, adjust, stop, or restart them as needed. You also can choose to make post-tax Roth contributions if you expect to be in a higher tax bracket when you retire.
Connect to your financial future
These enhancements are intended to make saving for your retirement more seamless. Your future is important, and JHU provides resources to support you every step of the way.
Wondering if you're saving enough for retirement, or do you have other questions about JHU's 403(b) plan? Visit MMA's Prosper Wise website, your free, one-stop digital platform for financial planning, or schedule a consultation with an unbiased MMA financial coach.
Need help?
If you have any questions or need assistance, contact:
- JHU Benefits Service Center at benefits@jhu.edu or 410-516-2000
- TIAA at 888-200-4074, weekdays, 8 a.m. to 8 p.m. You also can explore TIAA's website for additional resources.
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