Looking for Survey Data-Retirement Plans for Private Colleges/Universities

[AndyH]

Can anyone point to any surveys of retirement plans sponsored by private colleges and universities. Prevalance of DB plans. Contribution data for DC plans. Similar information.

Thanks for any suggestions.

[david rigby]

Not definitive, but I believe you will find very few DB plans, and common occurrence of TIAA-CREF. You might check that website. If you have specific targets (Ivy League, for example), go directly.

[AndyH]

Actually, my interest is private non-aligned. I did a local survey, the results of which were consistent your comments, but it was not exactly a statistically significant sample.

[SoCalActuary]

Be clear about the availability of 403b vs 401k, and whether Social Security coverage is included. Also, be clear about church based vs gov't vs non-profit vs profit-based plan sponsors. Each has different tax rules, and direct comparisons need to consider these differences.

[AndyH]

Care to explain to "those of us who might otherwise be unclear" how who and what determine if public college/university employees are covered under Social Security?

Not that it is directly related to my question, but it is an interesting side issue.

[SoCalActuary]

Certain governmental organizations are protected under state laws from a requirement for Social Security coverage. Instead, they must have a pension plan that provides an equivalent benefit, most commonly either under the Public Employees Pension or the Teachers Pension plan of that state. Thus, they have a pension benefit which is much larger than equivalent private plans because it includes the Social Security benefit indirectly within the state plan.

The decision is partly a matter of state law and partly a matter of an election by the specific employer that has been approved by the affected employees. I had recent experience with a quasi-governmental body that opted out of SS and replaced it with their own private plan. The employees looked at the state PERS, voted against it, then looked at SS, voted to leave it, and completed the election by installing their own private pension plan with equivalent benefits.

If you are making a comparison, you should know whether the plan sponsor is covered under a state program, Social Security, or a private plan. Then your comparisons are more informative.

[AndyH]

Interesting and useful. Thank you. As I noted initially, however, my principal question is about private colleges and universities, not public ones.

From a very limited survey that I did several years ago that I wish to update and augment, they all seem to have 8%-12% employer paid DC plans 100% vested and funded through 403(b) structures. I have yet to find much incidence of DB plans, which I am somewhat surprised by. Clearly some had them but terminated them.

mbozek, any connections or leads to this type of survey data?

[Belgarath]

Andy - here are 3 that may help. The first one contains several links to tables and data that may be very helpful. The second one is really for public universities, but I threw it in anyway.

http://www.aaup.org/publications/Academe/2...ja/ja01ehre.htm

http://www.tiaa-crefinstitute.org/Publicat...ags/issue50.pdf

http://chronicle.com/stats/990/

[GBurns]

SoCalActuary,

Can you give any examples of "Certain governmental organizations are protected under state laws from a requirement for Social Security coverage"?

Or, at least, any states that have such a law and which law it is?

[AndyH]

Thanks Belgarath! I just glanced at your links so far, but they look to be extremely helpful. I owe you one.

[SoCalActuary]

GBurns: Start your search with this:

http://www.ssa.gov/retire2/stateandlocal.htm

Each state has a procedure to determine whether a unit is coordinated with Social Security or is exempt due to state-provided coverage.

[GBurns]

Your post was "Certain governmental organizations are protected under state laws from a requirement for Social Security coverage". Thereby making it a state decision.

I have never seen a state law that preempts Social Security coverage, but I know of Federal Law that allows states to "opt out". So the opting out is what is allowed by Federal Law not state law. So I was wondering where I had missed such state laws.

The link that you have given alludes to Federal law allowing opting out of coverage I see no mention of state law. Although there is state law that explains what the state agency can do after the state takes the exemption given by Federal law.

[SoCalActuary]

My point is that the action occurs at the state level and requires the election of the individual plan sponsor and their employees. In other words, the state has the local authority to opt out of Social Security.

By the way, individual religious organizations have the same authority, and they sometimes sponsor private colleges as well.

[GBurns]

The authority lies with the Federal Govt through the Social Securuty Act which allows the SSA to enter into section 218 agreements. It is up to the Federal Govt to allow, revoke or modify section 218, not up to the states. Section 218 is Federal Law which can only be modified by the Federal Govt.

The action is only allowed as the Federal Govt sees fit and the alternative put into place by the states have to meet standards set by the Federal Govt.

As an analogy, the State allows me to get a drivers license, I can decide not to get 1. If, however, the state does not allow me to get a drivers license, I cannot decide to issue myself a driver license. Substitute "Federal Govt" for "State" and "State" for "me" and "myself" and "Section 218" for "driver license" if that makes it easier for you to understand where the issuing authority lies.

[SoCalActuary]

No doubt that the Federal authority permits local gov't and religious elections not to participate. That is permission given. However, the issue for the survey is whether or not the individual institution took the election, and how did it affect their pension plan design.