Earnings are compounded and tax-deferred. This means that you can earn interest not only on your contribution, but also on the earnings generated by the contribution. And, you pay no taxes on earnings until you draw on your account in retirement, so your account grows faster than a similar outside investment. Withdrawals For information about withdrawals during your working years, click here . For information on receiving payments when you leave NYU, whether or not you have retired, click here .
All employees are eligible from their date of hire to participate in the Supplemental Plan.
If you are ineligible to participate in the NYU Retirement Plan because you work less than 1,000 hours in a calendar year or have not yet completed the one-year waiting period, you may choose to participate in the Supplemental Plan. During your working years, you and your employer pay Social Security taxes. When your earnings cease due to retirement, total disability, or death, Social Security pays benefits to you or your survivors to replace part of the lost income. Social Security retirement benefits are based on your earnings record. During this time you and your employer must have paid Social Security taxes on your earned income.