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Payroll costs account for more than 60 percent of the university’s operating budget; and as a result, it is essential that we identify all measures to address the looming budget shortfall while continuing to make decisions that are consistent with Cornell’s guiding principles for COVID-19 response as expressed in President Pollack’s April 7 message to the community.
The following temporary programs are being instituted to support the university’s COVID-19 financial cost-saving measures. Additional details about the financial measures that are being taken as a university can be found in President Pollack’s July 2 statement.
Questions regarding these programs should be directed to your manager or your HR representative.
Effective August 1, 2020 through June 30, 2021
Contract college benefits-eligible faculty and staff making $40,000 and above will receive a reduction in annual base pay on a tiered basis.
Effective August 1, 2020 through June 30, 2021
For the period August 1, 2020 to June 30, 2021, the CURP contribution for participants will be 3%, except for those participants referenced in the first bullet below. All other administrative aspects of the CURP will remain in effect, including applying eligibility rules, crediting service for waiting periods, and processing demographic or status changes, etc. CURP contributions will continue to be remitted under the existing participant distributions to either Fidelity Investments and/or TIAA, until changed by the participant.
In the September 3rd paycheck (pay period 8/13 - 8/26/2020), there will be a retroactive contribution of 7% of eligible earnings that were paid on the days 7/30 and 7/31. With this 7% contribution added to the 3% contribution included in the August 20th paycheck, the total contributions for 7/30 & 7/31 will equal 10%.
Applications are CLOSED.
The Voluntary Retirement Incentive (VRI) is designed to provide a recognition of our long-service faculty and staff while also offering additional savings to address the financial challenges. Specific information about the VRI was sent via email to eligible employees on June 25, with hard copy documents sent to homes shortly thereafter.
Annual Pay
|
Reduction %
|
---|---|
Up to $39,999
|
0.00%
|
$40,000 - $49,999
|
0.50%
|
$50,000 - $59,999
|
1.00%
|
$60,000 - $69,999
|
1.50%
|
$70,000 - $79,999
|
1.75%
|
$80,000 - $89,999
|
2.00%
|
$90,000 - $99,999
|
2.25%
|
$100,000 - $129,999
|
2.50%
|
$130,000 - $149,999
|
2.75%
|
$150,000 - $179,999
|
3.00%
|
$180,000 - $199,999
|
3.50%
|
$200,000 - $229,999
|
3.75%
|
$230,000 - $249,999
|
4.25%
|
$250,000 and above
|
5.00%
|
The Cornell University Tax-Deferred Annuity Program (CUTDAP) offers eligible employees a way to save more for their retirement income, using before-tax dollars. Employees elect the amount or percentage that will be contributed to their account directly from their paycheck. Voluntary contributions (to the TDA Plan) are limited under age-based provisions of the tax code: up to $19,500 if under age 50 in 2020, and up to $26,000 if age 50 or older in 2020. More information is available here.
The IRS requires employers to ensure that the contributions or benefits provided under their retirement plans do not discriminate in favor of highly compensated employees. The Cornell University Retirement Plan (CURP) has historically been granted ‘non-discriminatory’ status because we utilize one contribution formula for all members, without regard to earnings level, age, length of service, etc.
An ‘individual choice’ model (i.e. reduction in pay vs. reduction in Cornell contribution) would introduce the possibility that we would fail future ‘non-discrimination testing’ and we could be required to immediately remove Cornell contributions from participant accounts and change future contributions for particular individuals.
No, employer contributions, employee contributions and total combined contributions to the University’s 403(b) plans (CURP and TDA) are regulated by annual maximums as defined by the IRS tax code.
It is important to note that because the voluntary TDA plan has its own maximum limits, reducing the CURP contribution does NOT increase how much can be contributed to the TDA.
In certain cases, an employee of any age who has at least 15 consecutive years of service with the university and meets other conditions required by the IRS, may be eligible to contribute up to an additional $3,000 in 2020. If you have 15 years of service, and have not been contributing to the maximum TDA limits each year, you may qualify. Please contact the HR Services and Transitions Center for more information.
As an additional tax-deferral opportunity, employees who earn $190,950 or more in 2020, are eligible to participate in the voluntary 457(b) Plan, which allows for an additional tax-deferral of $19,500 in 2020.
Members of the senior leadership team and some additional faculty and staff have voluntarily assumed a six-month pay reduction to support student financial aid.
Yes. Faculty arrangements would need to be negotiated between the faculty member, department chair and the dean. Units will need to be able to ensure that the agreement does not adversely impact their ability meet the instructional mission. Agreements would need to include details on the level and duration of the reduction, and responsibilities to be discharged during the period of the agreement.
Staff may request a short-term reduction in hours (appointment) to help meet their personal needs. These arrangements will need to be negotiated between the staff member and supervisor. Pay, pay-based benefits, HAP/Vacation will be based on adjusted effort.
Eligible faculty members and staff employees may choose to request to reduce their job duties and scheduled hours to gradually transition into retirement, using the Phased Retirement program. The specific programs and details are here.