Faculty Benefits and Services

Other Benefits

Retirement Plan

Mount Sinai School of Medicine offers a 403(b) tax deferred retirement plan to eligible faculty. Investment options are available through three companies: Prudential, TIAA-CREF, and Vanguard.

Faculty should complete enrollment forms to participate in the tax deferred retirement plan. However, effective January 1, 2008 faculty who do not enroll by their eligibility date (as defined below) will automatically be enrolled in the Vanguard Target Retirement Funds for their employer contribution; they would then need to complete paperwork to select another investment company for the employer contribution. Paperwork is always required to initiate employee (voluntary) contributions.

Participating faculty at the rank of Instructor will receive from the School a contribution to their tax-deferred account of an amount equal to 7 percent of base salary. Participating faculty at the ranks of Assistant Professor, Associate Professor and Professor will receive from the School a contribution to their tax-deferred account of an amount equal to 10 percent of base salary. The employer contribution will be capped at the IRS maximum, which is $230,000 as of January 1, 2008. Employer contributions begin on the first of the month coincident with, or immediately following the completion of, the first year of employment.

In addition, participating faculty may contribute to their own account through salary reduction. The maximum allowable contribution for individuals under age 50 is $15,500, and the maximum allowable contribution for individuals age 50 and above is $20,500. There is no waiting period for the self-contribution; faculty may begin to contribute as soon as they sign up for this benefit.

IRS regulations stipulate that the combined employer contribution and voluntary self-contribution cannot exceed the lower of $46,000 or 100 percent of gross annual earnings.

Federal income taxes on contributions and investment earnings are deferred until the participant actually receives benefits from the plan, although there may be State tax consequences to contributions. If you leave Mount Sinai School of Medicine prior to completing three years of service, you will be entitled to only the funds that you contributed and earnings on those funds; the employer contributions and earnings on those contributions will be forfeited.

For a detailed plan description and enrollment forms, go to: http://intranet1.mountsinai.org/humanresources/. Click on "Benefits," then "Plan Information/Forms: and finally, "Pension/Retirement Plans." If you have questions, call (212) 241-8938.