The latest work-life information at IU
No. 46
February 2009


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

Saving for Retirement in Turbulent Times

Supplemental Retirement Plans

Indiana University offers two supplemental retirement plans—the IU Tax Deferred Annuity Plan and the IU Retirement Savings Plan. Now is the time to sign up for one of these plans, or increase existing contributions. Each plan allows participants to

  • take advantage of long-term investing and compounding earnings;
  • contribute money on a tax-deferred basis;
  • take advantage of institutionally managed accounts with low fees, on-site counseling, etc.;
  • accelerate retirement savings by buying shares at low share and unit prices.

Participation in these plans may begin and be suspended at any time.

To enroll in one of these plans, contact a campus Human Resources office to obtain more information and an enrollment packet, or visit www.indiana.edu/~uhrs/benefits/SRC-05/index.htm.

To increase the current contribution level in these plans, visit Benefits Self Service at www.OneStart.iu.edu.

It Has Never Been a Better Time to Save for Retirement

Now is the time to follow the investment principle “buy low, sell high.” Most investments are priced at record lows. This means participants can maximize the number of shares or units purchased and then accelerate retirement savings when the market recovers by having more shares increasing in value!

Individual Retirement Planning and Investment Counseling Sessions

During these turbulent economic times it is more important than ever to seek advice from the professionals at Fidelity Investments and TIAA-CREF. One-on-one counseling is available to all retirement plan participants and their spouses.

Fidelity Investment counselors schedule sessions on the Bloomington and Indianapolis campuses at least once a month, and all other campuses on a periodic basis. To schedule an appointment with a retirement counselor, call 800-642-7131 or make an online reservation at www.indiana.edu/~uhrs/benefits/retirement-counseling.htm.

TIAA-CREF counselors schedule sessions on the Bloomington and Indianapolis campuses at least once a week, and all other campuses on a periodic basis. To schedule an appointment with a retirement counselor, call 877-267-4507 or make an online reservation at www.indiana.edu/~uhrs/benefits/retirement-counseling.htm.

Retirement Plan Contribution Limits for 2009

The IRS has increased retirement plan contribution limits for 2009.

  • Total annual contributions to the IU Retirement Plan and the IU TDA Plan: $49,000
  • Employee annual contributions to the IU TDA Plan and the IU Retirement Savings Plan: $16,500 each plan
  • “Age 50 catch-up” employee annual contributions to the IU TDA Plan and the IU Retirement Savings Plan: $5,500 each plan

 


Federal Minimum Wage Increase

The minimum wage will increase to $7.25 on July 24, 2009. Current Federal Fair Labor Standards Act (FLSA) provisions require that employees receive at least $6.55 per hour.

For any employee paid below the new minimum wage of $7.25 an hour, departments should process an HRMS E-Doc with an effective date of July 12, 2009, to coincide with the beginning of the bi-weekly pay period.

 


2009 Open Enrollment Results

During 2009 Open Enrollment, 7,218 elections—or 60 percent of total elections—were completed online using Benefits Self Service.

 
2009 Employee Enrollments
Medical Plans
IU PPO $900 Deductible
6,816
Blue Preferred Primary POS
9,497
IU HDHP PPO & Medical Savings Plan
286
TOTAL
16,599
Dental Plan
PPO Dental Plan
16,236
   
Tax Saver Benefit Plan
Health Care Reimbursement Account
7,966
Dependent Care Reimbursement Account
919
   
Other Plans
Tobacco-free Wellness HRA
8,996
   
* Total eligible population equals 17,592 full-time employees.

 


Tobacco Use and Health

Smoking and Women’s Heart Risk

Women who smoke have heart attacks nearly 14 years earlier than women who don’t. In a study by Norwegian doctors who reported to the European Society of Cardiology, women who smoked had their first heart attack at age 66 and at age 81 if they didn’t smoke.

Both of these differences contrast with the age at which men get heart disease: Male smokers have heart attacks about six years earlier than non-smoking men. Dr. Silvia Priori, a cardiologist at the Scientific Institute in Pavia, Italy, said, ”Women need to realize they are losing much more than men when they smoke.”

 

 

UHRS

Page updated: 23 February 2009
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