Contributions to the BU Retirement Plan
Only University contributions are held in the BU Retirement Plan and are contributed on a tax-deferred basis. Tax-deferred contributions are not considered taxable income, and you are not required to pay income taxes on that money until you receive payment of your accounts.
University Core Contribution
You will receive an automatic contribution from BU, based on your age and salary, after two years of eligible service. The University contributes an amount equal to a percentage of your eligible compensation each payroll period. The percentage varies according to your age. No contribution is required from you in order to receive the University Core Contribution.
University Matching Contribution
Your contribution to the Supplemental Retirement & Savings Plan is matched by BU dollar-for-dollar up to 3% .
|
When Your Age Is… |
University Core Contribution |
University Matching Contribution |
Total Potential BU Contribution |
| Under 45 | 4% of your eligible compensation up to the integration level PLUS 6% of your eligible compensation above the integration level | Dollar for dollar, up to 3% of pay | 7% of your eligible compensation up to the integration level PLUS 9% of your eligible compensation above the integration level |
| 45 through 49 | 6% of your eligible compensation up to the integration level PLUS 8% of your eligible compensation above the integration level | 9% of your eligible compensation up to the integration level PLUS 11% of your eligible compensation above the integration level | |
| 50 and above | 7% of your eligible compensation up to the integration level PLUS 9% of your eligible compensation above the integration level | 10% of your eligible compensation up to the integration level PLUS 12% of your eligible compensation above the integration level |
For Retirement Plan purposes, you should be familiar with the following terms:
Eligible Compensation
Eligible compensation is your base pay from the University including, if applicable, any stipend or other payments coded for payroll purposes as benefits-based overbase payments, excluding overtime, one-time payments, other overbase payments, commissions and bonuses, or the value of any employee benefits. Base salary amounts contributed under a pay contribution agreement to a 403(b) plan or to the Flexible Benefits Program or for pre-tax transportation benefits will be included in eligible compensation for Retirement Plan purposes.
Tax laws limit the annual amount of compensation that a retirement plan may take into account for contribution purposes. For 2025, the limit is $350,000.
Integration Level
For 2025, this amount is $70,600. It is adjusted each calendar year based on the Wage Base Increase calculated for purposes of the Social Security law, or the increase in the Consumer Price Index (Wages), whichever is smaller.
An adjustment in the University’s contribution percentage, based on a change in your age, is made at the beginning of the month in which you reach the new age.