WILLIAM MARSH RICE UNIVERSITY
AGREEMENT FOR SALARY REDUCTION
(For 403(b) Annuity Contracts)
BY THIS AGREEMENT, made between ____________________________, Social Security
(PRINT NAME)
Number __ __ __ - __ __ - __ __ __ __, and WILLIAM MARSH RICE UNIVERSITY, the Parties
hereto agree as follows:
Effective with respect to the amounts earned on or after the first day of ________, 20___ (which
date is subsequent to the execution of this Agreement), I hereby elect to reduce my eligible
compensation by the amount indicated below, such amounts to be forwarded by the University for
application as premiums on regular and/or supplemental annuity contracts in accordance with the
election(s) below.
This Agreement shall be legally binding and shall continue in effect as to each of the parties hereto
while employment continues; and provided, however, that either party may terminate this Agreement
as of the end of any month, so that it will not apply to subsequent compensation, by giving at least
thirty (30) days written notice of the date of termination.
The amount of the Salary Reduction Shall be: (This Agreement supersedes any previous agreements.)
$___________ per month, OR
___________% of gross annual salary, to be invested as follows:
(a) $_______TIAA/CREF RA’s* (b) $_______ TIAA/CREF SRA (c) $_______ Fidelity SRA
*TIAA/CREF Retirement Annuities (RA’s) are not available to employees hired on or before 01/01/1989 except when the
employee owns an existing RA Contract through the University or another institution that permits employee contributions.
I understand that the above salary reduction may not produce a total contribution
that exceeds the statutory maximum exclusion allowance under the Internal Revenue
Code Section 415 or 402(g), whichever is less. For employees age 50 and over, this
amount will include any additional catch-up contribution permitted under IRC 414(v).
I understand that I retain responsibility for monitoring compliance with that limit. I
authorize the University to stop my salary reductions and/or refund deductions if
necessary to comply with these limits.
Apply contributions to (check one): ________ New Contract(s): Application(s) attached.
________ Existing Contract(s)
Stop all contributions under my prior salary reduction Agreement.
____________________ __________
(EMPLOYEE SIGNATURE)
Original – Human Resources/Personnel File
(DATE)
Copy – Employee
Rev: 15-Jan-02
How much can you contribute to your 403(b) plan?
Deferral amounts to 403(b) plans are limited to specified amounts each year. For 2001,
the maximum amount that a participant may contribute is $10,500. The Tax Relief
Reconciliation Act passed in June 2001, increased the maximum deferral amounts
according to the following schedule:
YEAR
MAXIMUM DEFERRAL LIMIT
2002
$11,000
2003
$12,000
2004
$13,000
2005
$14,000
2006 and onward $15,000, with indexing for inflation in $500 increments
Additionally, the 2001 tax law allows plan participants age 50 or older to make “catchup” contributions to 403(b) plans. The contribution limits above are increased by the
following amounts (if you are age 50 or older):
YEAR
2002
2003
2004
2005
2006 and onward
INCREASE MAXIMUM DEFERRAL LIMIT BY
$1,000
$2,000
$3,000
$4,000
$5,000, with indexing for inflation in $500 increments
If you have worked for Rice University for 15 years or more, you may be
eligible to contribute additional monies to your 403(b) account. See the
Benefits Department for more information.
Rev: 15-Jan-02