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Who may participate?
If you are a regular or fixed-term employee hired prior to June 30, 1993, scheduled to work at least 20 hours per week for a minimum of 720 hours per fiscal year, you were eligible to participate in this plan. You had to enroll prior to June 30, 1993.
Enrollment in this plan is no longer permitted.
What type of plan is it?
The Defined Benefit Contributory Retirement Plan uses a formula to determine what your benefit will be when you retire. If you meet vesting requirements, your benefit at retirement is guaranteed.
How much does it cost?
If you are a participant in this plan, one percent of your applicable gross earnings is deducted from your paycheck on an after-tax basis up to a maximum compensation imposed by the Internal Revenue Service.
How is my benefit calculated?
There are several different benefit calculation formulas; of the ones that apply to you, the formula that produces the largest benefit for you will determine your benefit amount when you retire. All formulas consider your earnings and years of service while a member of the plan. Please refer to the Summary Plan Description or contact a Human Resources representative for details.
What is the vesting schedule?
Participants are partially vested after three years of service and fully vested upon completion of five years of service. For plan purposes, a year of service is defined as working 720 hours in a plan year, which is from July 1 through June 30.
If you leave Rensselaer prior to completing three years of service, you will receive your own contributions to the plan plus interest. You will not receive any benefit at retirement.
If you leave Rensselaer after having completed three years of service but less than five years of service, you will receive a benefit at your normal retirement date if you do not withdraw your contributions prior to that date. However, if you withdraw your contributions, you forfeit any benefit at the time of your actual retirement.
Once you have completed five years of service, you will receive a retirement benefit at your normal retirement date, even if you choose to withdraw your own contributions early. However, under those circumstances, the benefit payable to you at your retirement date will be less than the benefit you would have received if you had not taken your own contributions out earlier.
When can I retire?
Your normal retirement date is the July 1 after your 65th birthday, unless you were born in July, August, or September. If you were born in those months, it is the July 1 before your birthday. You will receive full plan benefits if you retire on this date.
You may retire and begin receiving benefits as early as ten years prior to your normal retirement date if you have been employed by Rensselaer for at least three years and have not withdrawn your contributions. However, if you leave Rensselaer more than ten years prior to your normal retirement date, your plan benefit is reduced by four percent for each year benefits start before age 65 (prorated for months) and the reduction is permanent. If you leave Rensselaer within ten years of your normal retirement date, your benefit is reduced by four percent for each year benefits start before age 62 and the reduction is permanent. If you separate at age 62 (prorated for months) or later, you are entitled to the full benefit you have earned to that date.
You may continue working after normal retirement date and continue making contributions and earn service credit until you actually retire. Or, if you wish, you may elect to begin receiving your retirement benefit at or after your normal retirement date, even if you continue working at Rensselaer. Contact a Human Resources representative for further information.
How are benefits paid?
If you are unmarried, your benefits will be paid to you as an annuity for life, for a minimum period of five years. If you die within five years of starting to receive your benefits, your beneficiary will continue to receive your benefit for the remainder of the five-year period.
If you are married, benefits will be paid for your and your survivor’s life in the form of a joint and survivor annuity, unless you and your spouse elect otherwise.
However, you may choose any one of ten payment options including the two outlined above. Payments under all these optional forms of annuities are “actuarial equivalents,” that is, they have the same overall value, but provide different monthly benefit amounts depending on how long payments are likely to be made.
 More detailed information is contained in the Summary Plan Description available at the Human Resources office.
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