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.
Eligible faculty and staff can also take advantage of Harvardís post-retirement health benefits. Retirees under the age of 65 even have access to the
same Harvard health plans offered to active employees at the same cost. For retirees age 65 and older, Harvard provides a choice of plans to supplement
Medicare and contributes to the plan based on length of employment at Harvard.