403(b) Retirement Program

• University of Rochester employees (except students whose employment is incidental to their education at the University):
  • You can enroll or make changes at any time (no service requirement)
• Automatic Enrollment:
  • Newly hired or rehired, regular full-time and regular part-time faculty and staff members will automatically be enrolled to make Voluntary Contributions*.
  • Automatic contributions will be made from your pre-tax eligible compensation each pay period at 3%. Effective July 1, 2020, your salary deferral election will increase 1% annually on the anniversary of your hire date to a maximum of 15%. You may elect to change or cease contributions at any time.

Pre-Tax 403(b) – Tax-deferred Voluntary Contributions are deducted from your gross wages before amounts are taken out for income taxes and deductions.

Roth After-Tax 403(b) – With the Roth after-tax option, your contribution is taken out of your paycheck after your income is taxed.

Your combined pre-tax and Roth after-tax Voluntary Contributions to the Retirement Program may be made in any amount up to the limits imposed by the Internal Revenue Code. Maximum annual Voluntary Contribution limits for Calendar Year 2025

• For those under age 50—$23,500
• For those age 50 or older by December 31st—$31,000
• For those age 60, 61, 62, or 63 as of December 31, 2025—$34,750

Note: Any employee contributions made to another employer’s plan in the current calendar year count in applying the employee contribution limits (i.e., the $23,500, $31,000, and $34,750 limits).

Regular full-time and regular part-time employees with two years of service (see Service Requirement section).

Time-As-Reported (TAR) staff are eligible if the two-year service requirement is satisfied. TAR staff also must work a minimum of 1,000 hours per Plan Year to receive the University’s Direct Contribution.

Note: Some positions are ineligible for the University Direct Contribution – see Eligibility Chart for details.

Two years of service

A year of service means a 12-month period starting with the date you commence employment and any anniversary date thereof during which you complete 1,000 or more hours of service.

Note: Service completed at some institutions will count toward the two-year service requirement. To receive credit for service at another eligible institution, you may complete the retirement service credit waiver in HRMS (Main Menu > Self Service > Benefits > Retirement Service Credit). Please remember to submit your service credit waiver within 90 days of your hire date so that we may process contributions retroactively.

Effective July 1, 2024: 6.2% of eligible compensation, up to the breakpoint ($65,000), then 10.5% of eligible compensation in excess of the breakpoint, up to the IRS limit ($345,000).

Faculty/staff decide how contributions are invested among a selection of professionally managed funds. For investment option details, visit TIAA.

Eligibility for University’s Direct Contribution

TAR staff are eligible for the University Contribution if they satisfy the two-year service requirement and work a minimum of 1,000 hours in the Plan Year (July 1 – June 30). The University contribution is 6.2% of eligible compensation, up to the breakpoint, then 10.5% of eligible compensation in excess of the breakpoint, up to the IRS limit. Please note, both the breakpoint and the IRS limit are updated annually on the Retirement Program Website.

Service Requirement for University’s Direct Contribution

Two-years of service

• A year of service means a 12-month period starting with the date the staff member commences employment and any anniversary date thereof during which the staff member completes 1,000 or more hours of service.
• Service completed at any higher educational institution, teaching hospital, not-for-profit research foundation, or not-for-profit support organization for higher educational institutions as well as service at a member of the controlled group of the University will count towards the two-year service requirement. If a staff member believes they have eligible service that meets the requirements mentioned above, they may submit the Service Credit Form in HRMS: Main Menu > Self Service > Benefits > Retirement Service Credit.

Examples

TAR staff member has met the two-year service requirement

If the staff member has already met the two-year service requirement, their hours worked will be counted during the Plan Year (July 1 – June 30). If the staff member reaches 1,000 hours worked in the Plan Year, they will receive a lump sum contribution for their hours worked, retroactive to the start of the Plan Year (July 1). Going forward, the staff member will receive the University’s contribution each pay period through the end of the Plan Year (June 30). At the start of the next Plan Year (July 1), the staff member will again need to reach 1,000 hours before receiving the University’s contribution.

*The staff member reached 1,000 hours worked in the Plan Year and became eligible for the University’s contribution. The University’s contribution calculation is based on the total eligible earnings for the Plan Year: $37,500 in eligible earnings *6.2% = $2,325**The staff member’s eligible earnings reached and exceeded the $63,100 breakpoint, therefore, of the $6,000 paycheck, $100 was needed to meet the breakpoint and was calculated at 6.2% for a contribution of $6.20. The remaining $5,900 from the paycheck was eligible for 10.5% of earnings, for a contribution of $619.50. The total contribution for the pay period was $625.70, moving forward the staff member will be eligible for a 10.5% University contribution each pay period.

TAR staff member has not met the two-year service requirement

If the staff member has not met the two-year requirement, their hours worked would be counted on a 12-month period based on the anniversary of their hire date. If a staff member’s hire date is February 15, their hours from 2/15/23-2/15/24 will be counted. Upon completion of their anniversary year, on 2/15/24, if they worked at least 1,000 hours, the staff member will be credited with one year of service. Regardless of whether or not the staff member reached 1,000 hours in an anniversary year, the tracking of hours will restart at the beginning of each anniversary year.

Download the TAR Staff Eligibility document.