Stanford Benefits
Stanford’s Basic & Matching Contributions (Stanford Contributory Retirement Plan - SCRP)
Once you qualify to participate in the Contributory Retirement Account (CRA) of the Stanford Contributory Retirement Plan (SCRP), Stanford will make contributions to the CRA on your behalf. The following information explains the two types of contributions – Basic and Matching.
Basic Contribution
Stanford makes a Basic contribution to the plan on behalf of every eligible Contributory Retirement Account (CRA) participant. Even if you choose not to contribute, Stanford makes this Basic contribution to the plan.
The university’s Basic contribution is based on your salary and years of qualifying service:
| Years of Qualifying Service | Percentage of Salary |
|---|---|
| 1 | 1% |
| 2 | 2% |
| 3 | 3% |
| 4 | 4% |
| 5 | 5% |
Matching Contribution
If you contribute Matchable Before-Tax or After-tax money from your eligible earnings to your CRA, Stanford makes a Matching contribution. This is in addition to the Basic contribution. Currently, the Matching contribution is made each pay period, according to the following schedule:
| If you contribute... | The Matching contribution is... |
|---|---|
| 1% of eligible earnings | 1.5% of eligible earnings |
| 2% of eligible earnings | 3.0% of eligible earnings |
| 3% of eligible earnings | 4.0% of eligible earnings |
| 4% or more of eligible earnings | 5.0% of eligible earnings |
The university’s Match Contribution will never exceed 5 percent of compensation for a payroll period.
Therefore, if you contribute more than 4 percent of compensation for some payroll periods and less than 4
percent for other payroll periods, you could receive less in Match Contributions over the year than had
you contributed at an even rate throughout the year. To enhance the university’s Match Contributions for
those employees whose contributions may vary over the course of the plan year, the Plan provides an
additional “true-up” Match Contribution.
At the end of the year, the university will review your Employee Contributions
and Match Contributions during the entire plan year and “true-up” your account by providing any missing
Match Contribution. True-up contributions will be posted after the close of the plan year.
Your Responsibilities
The IRS imposes certain contribution limits on this type of retirement savings plan.For more information, look at 2015 Contribution Limits in the Resource Library of the Benefits Web site.Stanford’s contributions may be reduced or stopped if you reach certain federal limits.
If you were employed by another employer during a calendar year, you are responsible to:
- Ensure that your annual contributions do not exceed IRS limits.
- Monitor your limits and paying any taxes, penalties or interest due because of excess contributions.
If you have any questions about the limits or your responsibilities, consult with a tax advisor.
