Links:

Eligibility

Benefits Period 

Interim Benefit 

Retirement Account Contributions 

Terminal Base Salary

Contact

See also:

18/20 Retirement Plan Summary of Plan Provisions (PDF)

Form:

Gainful Employment Certification – January - June 2007

Retirement 18/20 Retirement Plan

The 18/20 Plan has two distinct benefit components: 

• Interim Benefit – a deferred compensation provision 
• Retirement Account Contributions – a defined contribution provision 

Eligibility

Full-Time Appointed Academic and Professional Staff Grade 16 and above employees who are covered by the IU Retirement Plan 15% Level of Contributions at Indiana University on or before July 14, 1988, and completed at least 20 years of continuous full-time service at Indiana University with 18 years of participation in Indiana University's IU Retirement Plan 15% Level of Contributions, and who retire on or after the participant's 64th birthday and prior to the participant's 70th birthday.

Benefits Period

Payments by Indiana University of Interim Benefits and retirement account contributions shall terminate on the earliest of the following dates:

• the date of the participant's death, or 

• the date the participant resumes gainful employment by an entity funded by the State of Indiana, or 

• five years from the date of retirement, or 

• the participant's 70th birthday

Interim Benefit

Interim Benefit refers to the single life annuity derived from regular Indiana University contributions to the IU Retirement Plan 15% Level of Contributions at age 70, or five years from the date of retirement, whichever comes first, assuming:

• IU Retirement Plan 15% Level of Contributions continue to age 70, or for five years from the date of retirement, whichever comes first, and 

• a contribution history and continuation of regular Indiana University IU Retirement Plan 15% Level of Contributions of 50% to TIAA Traditional Annuity and 50% to CREF Stock Fund (regardless of actual allocation), and 

• investment returns of 6% from the date of retirement to age 70 or for five years from the date of retirement, whichever comes first, and

• annuity conversion factors used by TIAA-CREF at the date of the participant's retirement, and 

• the participant's Terminal Base Salary is not exceeded. 

Retirement Account Contributions

Contributions to the participant's retirement account, at the regular IU Retirement Plan 15% Level rate, based on the participant's Terminal Base Salary.

Terminal Base Salary

Terminal Base Salary is the average budgeted base salary for the five years immediately preceding retirement.

Additional Questions?

For questions about the 18/20 Plan contact the University Human Resource Services.

Benefit plan information on these web pages is in a summary format and is not intended to replace actual plan documents. Indiana University reserves the right to amend or terminate all or any part of any benefit plan.