ADMINISTRATIVE RULE NO: 6025-07
RELATED TO POLICY SERIES NO: 6025
TITLE: SALARY DEFERRAL RETIREMENT PLANS
PURPOSE
Salary-based elective deferral retirement plans are one piece of an overall compensation
and benefits package whose purpose is to positively impact the financial/personal
wellness, morale, performance, and retention of employees.
STATEMENT
Bargaining Unit Employees
Pay provisions and investment-based retirement benefits for bargaining unit employees
are subject to their respective collective bargaining agreements, and shall be governed
by those agreements.
Eligibility, Contributions, and Plan Administration
Eligibility and Plan Options
All LBCC employees, excepting work-study students, regardless of eligibility for college
contributions, may avail themselves of the established LBCC retirement plans; a 403(b)
tax sheltered annuity, or the Oregon Savings Growth Plan (OSGP) Roth, 457(b) account.
Annually renewable management, exempt, and confidential employees are eligible to invest their own funds as well as college contributions as outlined below.
College Contributions
Annually renewable management, exempt, and confidential employees shall receive annual
college contribution of $2,400 (paid in $200.00 monthly installments) for a 1.0 FTE.
Employees working less than 1.0 FTE will receive contributions on a pro-rated basis.
Contributions begin at the inception of a qualifying position with the college. These
contributions may in turn either be initially invested into the retirement plan of
their choice or taken as taxable salary. Whichever choice an employee makes, the level
of the college contribution shall be separate from base salary and shall remain fixed
on a year-to-year basis.
Administration
In the event that an employee chooses to invest the allotted dollars, contributions
to either the TSA or the OSGP will be made on a monthly basis. To initiate the investment
process, eligible employees must establish a viable 403(b) or OSGP account with the
college’s approved vendors. The College will provide a listing of these providers.
In the event that the employee does not establish a viable account within sixty (60)
calendar days of initial eligibility, the contribution will default into taxable income
for the employee, where it will remain until such a time that the employee chooses
to establish a viable retirement account.
If an eligible employee wishes to take the annual contribution as taxable income, they need only to communicate this preference in writing to Human Resources and Payroll and the contribution will be added to the employee’s monthly paycheck in the form of gross wages on top of base salary.
In the event that an ongoing employee’s status of annually renewable management, exempt, or confidential changes to another ineligible status, the aforementioned employer contributions will cease accordingly, though the employee may still make their own plan contributions if they so choose.
Changes to the designation of the college contribution may be made or at the start of any given calendar month. Eligible employees may re-designate the college contribution at their discretion within their personal WebRunner account. Contact Human Resources at extension 4429 for details or questions.
DATE OF ADOPTION: 10/06/2022
DATE(S) OF REVISIONS:
DATE OF LAST REVIEW: