Changes in Plan Contributions - Updated as of

5.12.2023

Effective July 1, 2023, important changes occurred relating will occur to the Seattle Pacific University Defined Contribution Retirement (the “Plan”).  The purpose of this notice is to explain this change these changes to you.

This notice also serves as a Summary of Material Modifications (SMM).  This SMM is a supplement to the Summary Plan Description (SPD) for the Plan.  It modifies some of the information found in the SPD, effective as of July 1, 2023.  Please keep a copy of this SMM with your copy of SPD.

Current Provisions:  Employer Contribution Rate

The Plan currently provides that an Active Participant in the Plan is entitled to a contribution of 9% of Compensation plus 5.7% of Compensation , Eligibility, and Vesting Provisions – Immediately Before July 1, 2023

 Immediately before July 1, 2023, the Plan provides for the following:

1. Employer Contribution Rate: If you are an Active Participant (as defined in the Plan and the SPD), you are eligible for (a) an Employer base contribution of 9% of eligible compensation plus (b) an additional contribution of 5.7% of eligible compensation in excess of 100% of the Social Security Wage Base

Summary of Changes

Effective March 16, 2021, the Plan has reinstated all Plan contributions that were previously suspended as of November 16, 2020. During this period, benefits accrued for Compensation were not reduced and participants continued to earn vesting credit (if not fully vested).

In addition, during this period the Plan was amended to suspend accruals for any employees who were not Active Participants as of November 16, 2020. This means that if you are an employee required to earn 1000 Hours of Service during the Plan Year to become an Active Participant and you had not earned 1000 Hours of Service by November 16, 2020; you may not be an Active Participant for 2020 and will not accrue a benefit under the Plan. Eligible Hours of Service will continue to be counted towards attaining Active status earned on the date March 16, 2021 or later.

Questions

1. (if applicable).
2. Eligibility: If you are employed by Seattle Pacific University (the “University”) in an eligible employment category, you become eligible for the Plan upon the later of completing one Year of Service and reaching age 21.  You are enrolled in the Plan on the quarterly Enrollment Date (July 1, October 1, January 1, or April 1) that coincides with or follows your completion of the eligibility requirements.
3. Vesting: You vest (earn ownership rights) in any Employer contributions over a 6-year vesting period. After you complete 2 Years of Service for vesting purposes, you are 20% vested in your Employer contributions. Then, for each additional Year of Service, you become another 20% vested, until you are 100% vested after 6 Years of Service.

NEW Provisions:  Employer Contribution Rate, Eligibility, and Vesting Provisions –

Effective July 1, 2023

 Effective July 1, 2023, the Plan is amended to provide the following:

1. Employer Contribution Rate: If you are an Active Participant in the Plan (as defined in the Plan and the SPD), you will receive (a) an Employer base contribution of 7% of eligible compensation plus (b) an additional contribution of 5.7% of eligible compensation in excess of 100% of the Social Security Wage Base (if applicable).  This 7% Employer base contribution rate is a reduction from the current 9% contribution rate.
2. Eligibility: If you are employed by the University in an eligible employment category, you will become eligible to participate in the Plan immediately following the later of your date of hire or attainment of age 21.  You will be enrolled in the Plan on the Enrollment Date (which is changing to the first day of each payroll period) that is administratively practicable on or after your completion of the eligibility requirements.  This is an improvement from the current one Year of Service requirement and better aligns with the provisions of the retirement plans of other higher education organizations.
3. Vesting: If you complete at least one hour of service with the University on or after July 1, 2023, you will become 100% vested in your Employer Contributions. Future Employer Contributions made to the Plan will also be 100% vested.  This means you will vest in Employer contributions immediately, instead of vesting gradually over a 2-to-6-year period.  This is an improvement from the current provisions and better aligns with the provisions of the retirement plans of other higher education organizations. 

For More Information

 Please see the SPD for more information, including definitions of the capitalized defined terms used in this SMM.

If you would like another copy of the Summary Plan Description (SPD) or if you have questions about these changes, please contact Carrie Dubord Atkins at 206-281-2676 or atkinsc2@spu.edu.

Investment Options

The University has an agreement with Transamerica Retirement Solutions (Transamerica) whereby Transamerica receives, invests, and reports on the funds sent to them on behalf of eligible employees. Employees have several investment options within the SPU monitored core lineup of funds available at Transamerica. The Office of Human Resources will provide information about these options but the participating employee directs all investment choices with Transamerica.

Eligibility

If you are employed by the University, you will be eligible to participate in the Plan at the time described below, unless you are an adjunct faculty member, a student enrolled at the University or a Leased Employee. Adjunct faculty, students and Leased Employees are not eligible to participate in the Plan.

Vesting

Termination of Employment

Upon your termination of employment for any reason, other than death, you will be entitled to receive your vested Account balances.