Feb 28, 2024  
DMACC Policies and Procedures 
    
DMACC Policies and Procedures
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HR3530 - Retirement Contributions


Procedures

Section: HUMAN RESOURCES PROCEDURES

SubSection: COMPENSATION

Master List Section: Human Resources

 

  1. Institutional Regulations
    1. Employer and employee contributions to the Iowa Public Employees’ Retirement System (IPERS) or FutureTracc are mandatory for eligible employees.
    2. Regular employees may elect to contribute a portion of their wages to a tax deferred 403(b) and/or 457(b) or 403(b) Roth retirement plan. Adjunct and Temporary employees may elect to participate in a retirement plan with a minimum contribution of $25 per pay.
  2. Procedure
    1. IPERS/FutureTracc
      1. An employee eligible to participate in either IPERS or FutureTracc is:
        1. A Regular employee;
        2. A Temporary employee paid $1,000 or more in two consecutive quarters;
          or
        3. An Adjunct employee hired other than on a term basis, such as Academic Achievement Center, ABE/HiSET, ESL, etc. paid $1,000 or more in two consecutive quarters.
      2. An employee shall have 60 calendar days from their eligibility date to make a retirement plan election. If the employee fails to make an election by the required date, IPERS shall be selected as their retirement plan. The election of a retirement plan is a one-time irrevocable decision for the length of employment with DMACC.
      3. The employer and employee shall contribute an amount equivalent to the percentages determined by IPERS in accordance with Iowa law.
      4. Retirement contributions shall not be withheld fro the lump sum payment of vacation pay for a terminating employee.
      5. Employee contributions are before federal and state tax.
    2. Tax Deferred or 403(b) Roth Retirement Plans
      1. An employee may contribute a flat dollar amount or a percentage of their annual salary, up to the statutory limit, to a tax deferred 403(b) and/or 457(b), or 403(b) Roth retirement plan.
      2. It shall be the employee’s responsibility to arrange for retirement plan deductions with Payroll.
      3. To establish, change, or stop a 403(b) or 457(b) retirement plan, an employee shall complete an “Agreement for Salary Reduction Under Section 403(b)” or “Agreement for Salary Reduction Under Section 457(b)” and submit it to Payroll.

  a. An employee may start or change a 403(b) retirement plan at any time. A 457(b) plan may be started only at the beginning of the month.

  b. Tax deferred 403(b) plans and 457(b) plans are accepted only from the companies participating in the State of Iowa Retirement Investment Club (RIC).

  c. The employee and the College must have awareness and adhere to contribution limits established by the IRS.

  d. Adjunct and Temporary employees may participate in a retirement plan with a minimum contribution of $25 per pay.

Cross Reference:
Policy HR420 - Employee Benefits  

Adopted: October 1, 2002
Reviewed: Annually

Revised:
January 1, 2005

November 1, 2006

November 1, 2007

November 1, 2008

November 1, 2009

November 1, 2010

November 1, 2011

November 1, 2012

October 1, 2014

February 1, 2016

February 21, 2017

March 20, 2018

September 1, 2020

January 9, 2023



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