Important Steps to Strengthen Retirement Readiness Beginning in 2024

Dear Colleagues,

We write to inform you about a new approach that Georgetown will be taking to strengthen the retirement readiness of our faculty and staff/AAP community. Our 403(b) retirement savings program currently includes a contribution from the University of up to 10% of an eligible employee’s pay, which we believe to be critically important. Many retirement planning experts recommend employees save 15% of their income to prepare for retirement. Beginning in 2024, we will take additional steps to encourage our employees to increase their contributions to further assist our community in securing their financial future. This is in alignment with industry best practices and recent legislative requirements for new 401(k) and 403(b) retirement plans. The steps described in this message will help our community achieve this savings goal.

The following changes will take effect on January 1, 2024, and apply to all employees eligible for the Defined Contribution Retirement Plan (DCRP). While these changes will occur automatically, they are completely voluntary. You will have the ability to opt out or adjust your retirement savings options, if desired.

DCRP Automatic Enrollment to 3%

Starting on January 1, 2024, and each January 1 thereafter, all employees who are eligible for the DCRP who are currently contributing less than 3% of their eligible pay will be automatically enrolled at 3%. This change aims to encourage increased retirement savings and ensure all eligible employees receive the maximum matching contribution from the University.

  • If you are in Phase One of the DCRP waiting period and are contributing less than 3% to the Voluntary Contribution Retirement Plan (VCRP), your contributions will be automatically increased to 3% in the VCRP.
  • If you are enrolled in the DCRP and are contributing less than 3%, your contributions will be automatically increased to 3%, and you will receive the corresponding maximum contribution from the University.
  • If you are enrolled in the DCRP and are already contributing 3%, there will be no change to your DCRP contributions.

VCRP Automatic Escalation of Employee Contributions

We will also implement automatic contribution escalations to the Voluntary Contribution Retirement Plan (VCRP) for individuals enrolled in the DCRP who are already contributing 3%.

  • Beginning on each January 1, this contribution percentage will increase by 1% annually, until you reach a maximum contribution of 12% in the VCRP.
  • As of January 1, 2024, if your current contribution is a specific dollar amount, it will be converted into a percentage and increased to the nearest whole percentage.
  • If you are already contributing the maximum amount allowable by the IRS to your VCRP account, there will be no change to your contribution. 

This automatic escalation feature will not apply if you are in Phase One of the DCRP waiting period.

These changes are part of our ongoing commitment to help you achieve your retirement goals, and we have engaged the Benefits Advisory Committee as we developed this new approach. In early December, you will receive more information about these changes, how and when to make updates to your retirement savings in GMS, and how to connect with subject matter experts if you’d like to learn more. We will continue to make these resources available to you throughout the months of December and January.

Thank you for your dedication to Georgetown University, and we look forward to supporting your path to a more financially secure retirement.

Sincerely,

David Green
Senior Vice President and Chief Operating Officer

Tony Kinslow
Vice President and Chief Human Resources Officer

Charles DeSantis
Associate Vice President of Benefits and Wellness and Chief Benefits Officer