Retirement

Eligible employees are encouraged to create an online account with Transamerica and may choose to contribute pretax and/or Roth (after-tax) dollars to their 403(b) retirement savings account after their first routine paycheck with the University. Employees should visit transamerica.com/portal/pepperdine and select the option to Create An Account.

Employees have year-round access to retirement planning resources such as webinars and one-on-one consultations with Transamerica professionals. To schedule an appointment with a retirement consultant, please visit go.pepperdine.edu/hr-benefits.

Auto-enrollment features are enabled to help with disciplined retirement savings.

• New Hires and Rehires. Individuals employed at 20 or more hours per week will be automatically enrolled in a 3% pretax contribution, per paycheck, after 90 days of continuous employment with the University.
• Annual Re-enrollment. Employees who initially opted out of participating in the retirement plan will be automatically re-enrolled with a 3% pretax contribution, per paycheck, on August 1 each year.
• Auto-Increase Capability. All accounts are automatically enabled with an auto-escalation feature that increases an employee’s contributions by 1% on their work anniversary each year.

Employees are able to opt out of these features, as desired, by logging into their Transamerica online account and taking the necessary actions.

Employees become eligible to receive employer contributions to their 403(b) retirement savings account on the first of the month following one year of creditable service* with the University and after turning age 26. Once an employee meets both criteria, Pepperdine will generously begin providing two contributions:

• One non-elective contribution of 4% of the employee’s base salary; and
• One match contribution of the employee’s contributions, up to 6%.

Employer contributions are offered on a pretax basis and paid per paycheck.

*Employees must be employed in an eligible position directly through Pepperdine and work at least 1,000 hours within one year to meet the creditable service requirement.

Employees are eligible to contribute after-tax funds to their Retiree Health Plan upon reaching age 25 with at least 3 years of service. Funds contributed by employees are invested for the duration of their employment and are fully vested at the time of separation from employment.

Once eligible to participate, employees may email benefits@pepperdine.edu to have their contributions added as an after-tax payroll deduction.

Employees become eligible for Pepperdine’s monthly contribution to the Retiree Health Plan upon reaching age 40 with at least 3 years of service. Funds contributed by Pepperdine are available to employees who have met the vesting schedule at the time of their retirement or separation from employment, whichever occurs first.

Funds contributed by Pepperdine will become available to employees if the following vesting period is met at the time of separation or retirement:

• Age 55 with 10 years of service, or
• Age 65 with 5 years of service

An employee who does not meet the vesting schedule at the time of separation or retirement will forfeit all funds contributed by Pepperdine.