Retirement planning @ Harvard provides long-term security
Harvardís a great place to work Ė and itís also a great place to retire from. For example, professional and administrative staff, non-bargaining
unit support staff, and members of the Harvard Union of Clerical and Technical Workers (HUCTW) on regular payroll and working at least 17.5 hours per
week (1,000 hours in a year) are eligible to participate in the Retirement Plan. Harvardís retirement benefits help you build long-term savings and a source
of income after you retire from the University. The University pays the full cost of the Retirement Plans.
Under the retirement plans, after a six-month waiting period, faculty and most staff under age 40 receive a monthly contribution equal to 5 percent of salary, and those over age 40 receive a contribution equal to 10 percent of salary. (Contributions are increased for earnings above the Social Security wage base.) Faculty and staff choose where to invest these contributions from a selection of high-quality options. To help you make better investment decisions, Harvard offers free, lunch-time seminars for all employees on financial planning and investment topics.
Through the Tax-Deferred Account Program, you can add to your retirement savings by contributing a portion of your salary to a Tax Deferred Account (TDA) on a pre-tax basis. You pay no federal or state taxes on these savings or the investment income until you withdraw your funds.