The definition of Compensation under the Plan can vary depending upon the purpose (e.g., allocations, nondiscrimination testing, tax deductions.)
In general, the amount of your earnings from your Employer taken into account under the Plan is all earnings reported to you on Form W-2. Compensation will include amounts that are not included in your taxable income that were deferred under a cafeteria plan, a 401(k) plan, a salary deferral SEP plan, a 403(b) tax-sheltered annuity plan, a 457(b) deferred compensation plan of a state or local government or tax-exempt employer, or transportation fringe benefits that you receive.
The definition of Compensation used under the Plan has been further adjusted to exclude the following amounts.
- Bonuses that you receive will not be considered Compensation.
- Overtime pay will not be included in the Compensation.
- Amounts deemed to be compensation that relate to an automatic enrollment cafeteria plan where you fail to provide proof of insurance will be excluded when determining your Compensation.
If you receive payments from your Employer within 2 ½ months after severing your employment, any regular pay for services you performed prior to severance will be included in Compensation. Other post-severance payments will affect your Compensation as described below.
- Unused accrued sick, vacation or other leave that you are entitled to cash out will be excluded from Compensation.
- Amounts received under a nonqualified unfunded deferred compensation program will be excluded from Compensation.
The measuring period for Compensation will be the Plan Year.
The maximum amount of Compensation that will be taken into account under the Plan is $245,000 (for 2009). This amount increases as the cost of living rises.
Deferrals are the dollars you choose to contribute to the Plan through payroll deduction on pre-tax basis.
You will be considered Disabled if you cannot engage in any substantial, gainful activity because of a medically determined physical or mental impairment that is expected to last at least 12 months.
Early Retirement Age
There is no Early Retirement Age designated under the Plan.
The Employer is Iona College. Your Employer will also serve as the Plan Administrator, as defined in ERISA, who is responsible for the day to day operations and decisions regarding the Plan, unless a separate Plan Administrator is appointed for all or some of the plan responsibilities. The term Employer, as used in this Summary Plan Description, will also mean Plan Administrator, as that term is used in ERISA.
Highly Compensated Employee
A Highly Compensation Employee is any employee who
- was a five percent owner at any time during the year or the previous year, or
- for the previous year had Compensation from the Employer greater than $110,000 (for 2009).
The $110,000 threshold is increased as the cost of living rises.
Hour of Service
An Hour of Service, for purposes of determining Plan eligibility, vesting and eligibility to receive Employer contributions will be based on actual hours for which you are entitled to pay.
If your Employer continues a plan from a prior employer, you will receive credit for time that you worked for the predecessor employer. Regardless, you will receive credit for your hours of service with
- an institution of higher education
only for determining
- whether you have satisfied service requirements to participate in this Plan.
All contributions to the Plan will be invested either in annuity contracts or in mutual funds held in custodial accounts. The agreements between the vendor and your Employer or you that constitute or govern the annuity contracts and custodial accounts are referred to as Individual Agreements. The Individual Agreements explain the unique rules that apply to each Plan investment and may, in some cases, limit your options under the Plan, including your transfer and distribution rights.
Your Employer may make Matching Contributions to the Plan based on the amount of Deferrals you contribute to the Plan.
Normal Retirement Age
Age 65 is considered the Normal Retirement Age under the Plan.
An employee of the Employer who has satisfied the eligibility requirements and entered the Plan is referred to as a Participant.
The Iona College Defined Contribution Retirement Plan is the Plan described in this Summary Plan Description.
Your Employer is responsible for the day-to-day administration of the Plan. To assist in operating the Plan efficiently and accurately, your Employer may appoint others to act on its behalf or to perform certain functions.
A 12-month period ending on 06/30 will serve as the Plan Year.
Qualified Nonelective Contribution
Your Employer may make Qualified Nonelective Contributions to satisfy certain nondiscrimination tests that apply to the Plan. These contributions are discretionary and are 100 percent vested when made.
Taxable Wage Base
The Social Security Administration sets a contribution and benefit base level each year which is referred to as the Taxable Wage Base.