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Voluntary Supplemental Retirement Program

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This Plan Closed To New Contributions As Of December 31, 2013

The more you can save and the earlier you start, the greater your financial security in retirement will be.That’s why, in addition to our employer-funded retirement plan, Lehigh also offers eligible employees the opportunity to set aside their own funds for the future. See information regarding the Lehigh University Retirement Plan introduced in 2014.

Prior to 2014, Lehigh offered a Voluntary Retirement Savings Plan (VRSP) as a savings tool. Employee contributions to the plan were made through payroll deduction. Payroll contributions, as well as the interest or dividends earned, are tax-deferred.  This means that no income tax is paid until the funds are withdrawn during retirement.

Investment Options

The university offered four options for investments. Employees could choose to direct their salary reduction contributions to:

Previous participants in the Voluntary Retirement Savings Plan (VRSP) who still have existing retirement accounts with any of the above companies should contact the applicable investment company directly regarding their account(s).

Savings Minimums and Limitations

  • The minimum monthly amount for investment in the VRSP was $15.
  • The maximum annual amount was determined by federal law.
  • Any money withdrawn before the employee reaches age 59½ or retires, is subject to federal income taxes and may be subject to a federal tax penalty.
  • In addition, the ability to withdraw funds before age 59½ may be restricted.

The plan was offered to supplement the retirement income provided by Social Security and the Lehigh University Retirement Program for Faculty and Staff. It was designed to meet the requirements of Internal Revenue Service Section 403(b) and 403(b)(7) and is subject to current and future provisions of the Internal Revenue Code. The VRSP was administered by Human Resources.

New Plan Introduced In 2014

Lehigh transitioned to a new retirement program in January 2014. Among its features, the new plan includes a matching incentive and will do away with age-based contribution levels. As a result, the current voluntary supplemental retirement program (VRSP) will be closed to new participants after January 1, 2014. If you participated in the VRSP, your account balances may be rolled into the new retirement program, if desired, and you will need to take action to do so. No additional contributions may go into the VRSP after January 1, 2014. Learn more about the transition to the New Lehigh University Retirement Plan.

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