Changes to the JHU 403(b) plans are making it easier for employees to save for their futures.
Two recently announced enhancements have been designed to help you build your retirement savings effortlessly: automatic enrollment for those who haven't already signed up and auto-savings programs for everyone with a 403(b) plan.
If you have been automatically enrolled and want to opt out or change your investment elections, you must do it by Dec. 31. If you already contribute to a 403(b) plan and want to enroll in automatic savings, you can sign up now. Read below for details.
Automatic enrollment in 403(b) plans
Full-time benefits-eligible employees (excluding bargaining unit employees) not currently participating in the JHU 403(b) plan were notified by TIAA in early November that they will be automatically enrolled with a 3% pre-tax savings rate, effective Jan. 1, 2025. The auto-enrolled group includes new hires and also faculty and staff who are full time and eligible but not currently enrolled. Employees who are already participating in a 403(b) plan are not affected by this change.
If you received notification of automatic enrollment and want to make changes:
- You can opt out of auto-enrollment or select a different deferral amount. To make either of these changes, visit the TIAA website and submit your preferences by Tuesday, Dec. 31, 2024. You also can choose to contribute via post-tax Roth contributions; to learn more about these, go here.
- You can change your investment elections. If you're automatically enrolled in a plan, you'll be invested in an age-based target-date fund that reflects a future date closest to your 65th birthday. You can select a different investment option offered within your plan at any time. Learn more here about the target-date funds and other investment options you can choose from.
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 be able 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.
Auto-save program for contributions to 403(b) plans
If you already contribute to a 403(b) plan, you can elect to participate in the auto-save program to gradually increase how much you save, starting Jan. 1, 2025. Auto-save 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 the steps on this flyer to submit your preferences to TIAA by Wednesday, Jan. 1, 2025—before your Jan. 15 paycheck.
Webinar, resources, and other help
Wondering if you're saving enough for retirement, or do you have other questions about JHU's 403(b) plans? You have options for support:
- Join a webinar on Thursday, Nov. 21, from noon to 1 p.m., to learn more about the 403(b) retirement plan enhancements. Register here.
- Go to HR's Retirement Plans enrollment page.
- Visit MMA's Prosper Wise website, your free, one-stop digital platform for financial planning.
- Schedule a consultation with an unbiased MMA financial coach.
If you have questions or need assistance:
- Explore TIAA's website for additional resources or call 888-200-4074, weekdays, 8 a.m. to 8 p.m.
- Contact the JHU Benefits Service Center at benefits@jhu.edu or 410-516-2000.
Posted in Benefits+Perks
Tagged hr newswire
