Changes in Plan Contributions - Updated as of 5.12.2023

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