The latest work-life information at IU
           
   


No. 35
August 2005


University Human Resource Services
www.indiana.edu/~uhrs

Inside this Issue:

Supplemental Retirement Campaign

Tobacco Use and Health

IU Fee Courtesy Plan

Student Medical Insurance Plans

Anthem Issues New ID Cards

Compensation System Initiative

 

The Informed Employee is published 2-3 times a year by University Human Resource Services for approximately 16,000 full-time appointed staff and academic employees across the eight Indiana University campuses.

University
Human Resource
Services
Indiana University
Poplars E165
400 E. 7th Street
Bloomington, IN 
47405-3085

  Don’t Delay, Start Today!
Supplemental Retirement Plan Campaign

Most people say they should save more money for retirement, yet the majority fails to do so. This includes IU employees. The statistics are staggering: 11,500 eligible IU employees (67 percent) do not participate in the two supplemental retirement plans sponsored by Indiana University. These two plans are the IU Tax Deferred Annuity Plan and the IU Retirement Savings Plan.

Finding the money, filling out enrollment paperwork, and having to choose how contributions will be invested are just a few of the reasons employees do not contribute to supplemental retirement plans. However, the need to save more money for retirement years has never been greater. The rising cost of living, including health care expenses and the increasing life expectancy, have dramatically increased the amount of savings an individual will need during retirement years.

  Average Life Expectancy
Male 74.8 years old
Female 80.1 years old
National Vital Statistics Report, Vol. 53, No. 15, February 28, 2005 (Centers for Disease Control and Prevention)

To encourage and assist eligible employees to begin participating in the IU-sponsored supplemental retirement plans, Indiana University is working with Fidelity Investments and TIAA-CREF to launch a Supplemental Retirement Plan Campaign.

Presentations
University Human Resource Services (UHRS) and its partners will be making presentations in the fall at various campuses. Some presentations will even be broadcast live to all campuses to give employees as many opportunities as possible to attend a meeting.

Employees will be able to learn more about the plans, the benefits of participating, ideas on how to find money to contribute to the plans, and investment education. In addition, UHRS and campus Human Resource office personnel will be on hand to help employees sign up for the plans and answer questions in a one-on-one setting.

Campaign Web Site
The campaign Web site contains many helpful tools for employees regarding their retirement plan needs, forms, retirement planning calculators, a campaign calendar, contact information and more. To visit the campaign Web site, go to www.indiana.edu/~uhrs/benefits/SRC-05/.

Communications
Each eligible employee who does not currently participate in an IU-sponsored supplemental retirement plan will receive an e-mail message and a brochure from UHRS informing the employee about the campaign.

Don’t Delay, Start Today!
Whether retirement is 30 years away or only a few years away, an employee can make significant progress toward accumulating assets for retirement years by getting started now. Even contributing small amounts can help increase an employee’s retirement savings dramatically.
Eligible employees can start and stop contributions to these plans at any time. Getting started only takes a few minutes and provides an employee with significant opportunities for greater financial security during retirement years.

Indiana University and our partners at TIAA-CREF and Fidelity Investments are here to help employees save for retirement years. Employees are encouraged to contact UHRS or their campus Human Resource office to obtain more information. Don’t Delay, Start Today!

IU TDA Plan & IU Retirement Savings Plan Highlights

Contributions
• Up to $14,000 pre-tax to each plan.
• If age 50 or older, up to an additional $4,000 pre-tax to each plan.
Vesting
• 100% vested in accounts.
• In the event of death, the designated beneficiary will receive the value of the accounts.
Investment Options
• Participants make all investment decisions.
Distributions
• Both plans permit the withdrawal of funds upon termination of employment.
• The IU TDA Plan permits the withdrawal funds when the employee reaches age 591/2.
Income Taxes

• Contributions are made “pre-tax,” and there are no federal, state, or local income taxes until funds are distributed from the plan.

 

Tobacco Use and Health
One Quarter of Young Women Smoke

New data from the American Legacy Foundation surveys show that, despite recent declines in tobacco use nationwide, a quarter of young women (16-24 years old) are smokers. Perhaps more alarming, although 83 percent said they believe they can quit smoking . . . less than 3 percent succeeded in quitting smoking for at least a year.

This new information about smoking cessation among young women is critical because smoking continues to be the foremost killer of women in the United States, and the number of women who die of smoking-attributable cancer is increasing.

Smoking during adolescence is especially damaging to health:

  • Smoking during adolescence reduces lung function and causes respiratory illness.
  • Smoking during adolescence is associated with increased risk for serious tobacco-related disease later in life.
  • Women who smoke during adolescence increase their risk of developing breast cancer later in life.

Although smoking is declining among both men and women in the U.S., declines are greater among men than women. Since 1970, smoking rates among women have declined by about 30 percent compared to a 40 percent decline among men.

Source: American Legacy Foundation

 

Next article: IU Fee Courtesy Plan


UNIVERSITY HUMAN RESOURCE SERVICES
Last updated: 19 August 2005
URL: http://www.indiana.edu/~uhrs/
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