Mount Sinai offers a 403(b) tax-deferred retirement plan to eligible faculty through TIAA Group.
Employer contributions will be invested in the plan’s default investment option—the age-appropriate Vanguard Institutional Target Retirement Funds.
Retirement Plans
- Faculty at the rank of Instructor will receive from the School a contribution to their tax-deferred account of an amount equal to 7 percent of base salary.
- Assistant Professors, Associate Professors and Professors will receive from the School a contribution to their tax-deferred account of an amount equal to 10 percent of base salary.
- The employer contribution is capped at the IRS maximum, which is currently $285,000. If your base salary exceeds $285,000, Mount Sinai will contribute 7 percent or 10 percent (depending on your rank) only up to the $285,000 cap.
- The employer contribution begins immediately following the completion of the first year of employment if the employee’s start date was the first of the month, or on the first of the following month. For example, a plan participant with a hire date of May 1, 2017 will be eligible for employer contributions beginning May 1, 2018. A participant with a hire date of May 15, 2017 will be eligible for employer contributions beginning June 1, 2018.
- Vesting: Employees hired after January 1, 2004 who leave Icahn School of Medicine employment prior to completing three years of service will forfeit the employer contributions and earnings on those contributions.
- Employee contributions to the retirement plan are voluntary.
- Faculty who elect to participate may contribute to their own account through a pre-tax salary contribution.
- The maximum allowable contribution in 2020 for individuals under age 50 is $19,500.
- The maximum allowable contribution in 2020 for individuals age 50 and above is $26,000 ($19,500 + $6,500 considered an allowable catch-up contribution).
- There is no waiting period for the voluntary contribution; faculty may begin to contribute as soon as they sign up for this benefit.
- Vesting: If you leave Icahn School of Medicine, you will be entitled to any funds that you contributed plus earnings on those funds, regardless of your length of service.
IRS regulations stipulate that the combined employer contribution and voluntary self-contribution cannot exceed the lower of either $56,000 or 100 percent of gross annual earnings.
Federal income taxes on contributions and investment earnings are deferred until the participant actually receives benefits from the plan, although there may be state tax consequences to contributions.
For additional information about Mount Sinai 403(b) retirement plans, contact our TIAA representative at retirement@mountsinai.org.
Grandfathered Retiree Health and Welfare Program (limited eligibility)
Eligibility to participate in the Retiree Health and Welfare Program requires that active employees met the following criteria. As of January 1, 2004, employees must have:
- Been at least 50 years old, with 10 or more years of service to Mount Sinai* or
- Completed at least 20 years of continuous service
- Been regular salaried faculty with a of at least 17.5 hours per week who met the above criteria, were at least age 62 on the day of retirement, been eligible to retire with medical, prescription, and life insurance benefits
If you are eligible for the grandfathered Retiree Health and Welfare Program, and you want more information about it, call the Benefits Office at 646-605-4591.
*For purposes of determining Mount Sinai Retiree Health & Welfare Program eligibility, years of service are determined solely by the years of service within a participating entity of the Mount Sinai Health System. Faculty must satisfy the minimum required hours of service per week, as described above, in each of the ten years prior to retirement.
A previous grandfathered clause, dating back to 1991 remains in effect. The clause states that all regular salaried part-time and full-time faculty who completed at least 25 years of continuous service on or before December 31, 1991 are eligible to retire with medical, prescription, and life insurance benefits as early as 55 years of age.
457(b) - Supplemental Retirement Program
The 457(b) Supplemental Retirement Program is available to faculty whose annual total compensation in the previous year is greater than or equal to $250,000.00. To obtain additional information about the Supplemental Retirement Program, please contact your on-site TIAA representative at retirement@mountsinai.org or TIAA at 888-210-3992.
Note: These benefits are applicable to eligible faculty who are now or in the past were employed by Icahn School of Medicine at Mount Sinai. Faculty employed by member hospitals or other entities should check with their employer for benefits information. All benefits and programs are subject to change from time to time in accordance with institutional policy.