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CAMPUS TO EXPAND Duke plans to expand between East and West campuses and near the Nasher Museum and Sarah P. Duke Gardens.
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STAYING SAFE Aaron Graves, associate vice president for campus safety and security, discusses alerting the campus community to serious crimes.
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SUSTAINABLE DUKE The Duke Farmers Market opens April 11. New this season: reusable cloth bags and rain barrel demonstrations.
WORKING@DUKE NEWS YOU CAN USE
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April 2008
Retirement: Will you save enough money? Dwight and LaShosta Parham’s retirement dreams include travel to Africa and the Caribbean islands. The couple is saving now for their future plans.
DUKE’S RETIREMENT PLANS AMONG MOST COMPETITIVE ANYWHERE
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wight and LaShosta Parham dream big about retirement. He wants to travel to Africa; she hopes to visit the Caribbean islands. While the packing needs for their suitcases may differ, both destinations require something more than hope to make the trips and their retirement dreams come true. The Parhams, who work in food services in the East Campus Marketplace, know their dream will only be possible if they save now. “It seems like we’re on course,” said Dwight, 40. “But I’d also like us to have a cushion. You don’t want to get to 60 and realize that you don’t have enough money to retire. Then what are you going to do?” Concerns about funding retirement are on the minds of many. A 2007 Gallup poll reported that the biggest financial worry for the majority of Americans, 56 percent, is having enough money to maintain their standard of living in retirement. A recent Duke Today (www.duke.edu/today) online poll reflected a similar concern. The unofficial poll of 143 faculty and staff indicated that 59 percent are worried they may not have enough saved to live comfortably in retirement. At Duke, faculty and staff have several options to address these concerns. But individuals need to take advantage of Duke’s benefits to ensure they meet their retirement goals.
If an individual enrolls in one of Duke’s 403(b) plans and contributes just 3% of her base pay, she can accumulate significant personal savings during the course of her career through investment and compounding interest.
*Based on earnings of $40,000 per year/$100 monthly contribution. Source: Human Resources
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Dwight and LaShosta have 25 and 35 years respectively to go until reaching full retirement age. The question for them and others is: Will they be financially ready?
Options at Duke Like the Parhams, Duke’s hourly-paid staff are automatically enrolled in the Employees’ Retirement Plan, a traditional pension plan paid entirely by Duke. “I think it’s a good program that Duke is putting money into the plan, and we don’t have to worry about it,” said LaShosta, 33. Hourly-paid staff can also contribute to their retirement through the Duke Savings for Retirement Plan, which allows them to invest additional personal savings into a 403(b) plan. It’s funded by their voluntary, pre-tax deductions. Salaried faculty and staff are eligible for the Faculty and Staff Retirement Plan, a 403(b), and are not eligible for the Employees’ Retirement Plan. To receive retirement contributions from Duke, most faculty and staff have to contribute at least 3 percent of their salary. Those under 35 years of age can receive the Duke contribution for as little as 1 percent. The plan provides a similar benefit to Duke’s pension plan for hourly-paid staff. With Sylvester R. Hackney money like this available, most eagerly accept. Nearly 90 percent of those eligible to receive the Duke contribution participate in the plan. “I jumped in right away to take advantage of the miracle of compounding interest,” said Steve Williams, a monthly-paid marketing specialist for Duke’s Office of Information Technology. “A year later I started receiving Duke’s contribution, which I value enormously.” At age 56, Williams has worked at Duke seven years, and barring any major economic downturns, he said he and his wife are on target to reach their retirement goals. “Duke’s contribution is generous, especially the longer you stay. As your salary rises, so does Duke’s contribution,” he said. This year, Duke contributes 8.6 percent on the first $51,450 of salary and 13.3 percent on salary in excess of $51,450 to those enrolled in the faculty and staff retirement plan. >> See RETIREMENT, PAGE 4-5
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