Rutgers ABP plan?

[Retriever]

Originally Posted by NJHomebody

You should have been given an HR contact at Rutgers whom you can direct these questions to for definite answers.

I strongly suspect that, in the 3+ years since the OP posted his/her question, all of his/her questions have been answered.

[lynne817]

For educational organizations, the retirement plan is called 403b. You contribute 5% and they match 8%. It's actually a better plan compared to the usual 401k. Good luck!

[PeterChangineer]

Soni, I agree you should be cautious about leaving your current defined benefit plan for a defined contribution plan. Your financial advisor can help you compute which situation is best for you retirement-wise.

I am the son of a long-time Rutgers professor. Everything posted herein is correct per my work in assisting my dad in retirement with his finances. He did very well with the Rutgers ABP, which is a 401(a). Any additional contributions are made solely by the employee (unmatched) into a 403(b). My Dad used TIAA-CREF but when he retired he rolled everything over to ING - and they have done an excellent job (Neil Sacks is the principal).

Please be sure which plan you are being offered: ABP or PSER. If you are a professor it will be ABP. Note for your financial advisor that unless you have a 12 month contract, (most profs have 10 months but can many get paid for July/August), the 5% employee + 8% match is taken ONLY on 10 months, not 12: get clarification on this for your offered position.

[tom1944]

The alternative benefit plan is better than the pension. The pension requires a 7% contribution and the State is to contribute 4% while as stated earlier the ABP the employee contributes 5% and the State 8%.