Contents:

Highlights

Eligibility

Contributions

Investments

Distributions and Withdrawals

Questions and Comments

Forms:

Investment Company Change Form (PDF)

Publications:

Summary of Plan Provisions booklet

Retirement IUSERP (Supplemental Early Retirement Plan)

Highlights

• IRS code Section 401(a) Money Purchase Pension Plan
• Indiana University makes all contributions to the Plan
• Plan is subject to vesting rules
• Participant directed investment – daily valuation plan
• Distributions upon termination of employment with Indiana University

Eligibility

To be eligible to participate in the Plan, an employee must be:

• A 100% full-time equivalent (FTE) academic or professional staff employee, (grade 16 and above), hired in an appointed position between January 1, 1989 and June 30, 1999; and
• Participate in the IU Retirement Plan at the 12% contribution level

The following individuals are prohibited from participating in the Plan:

• Geological Survey Department employees
• Employees associated with an external agency agreement that does not accept early retirement plan participation

Restricted Participation

An age 55 or older participant is no longer eligible to receive an allocation of Plan contributions if the employee ceases to be a member of an eligible class of employees.

In the event an age 55 or older participant becomes ineligible to receive an allocation of contributions under the Plan, contributions will stop being made to the Plan with the employee’s last paycheck attributable to employment in an eligible class of employees.

Age 55 or older participants, who are ineligible to receive a contribution allocation under the Plan, have the same rights as participants who are eligible to receive a contribution allocation under the Plan, except that no additional contributions will be made to the Plan on their behalf.

Termination of Participation

An age 54 or younger participant is no longer eligible to participate in the Plan if:

• The employee terminates employment with Indiana University; or
• The employee no longer satisfies the eligibility requirements for participation in the IU Retirement Plan at the 12% contribution level.

In the event an age 54 or younger participant becomes ineligible to participate in the Plan, the individual’s entire Plan benefit will be forfeited.

Contributions

Employer Contributions

Each pay period, Indiana University will contribute to the Plan an amount equal to 2.4% of budgeted base salary paid to the participant in the pay period. “Budgeted base salary” does not include any summer pay or supplemental pay.

No contributions will be made to the Plan on behalf of a participant while the participant is on an unpaid leave of absence.

Employee Contributions

Indiana University makes all contributions to the Plan. Employees are not required, nor permitted, to make any contributions to the Plan.

Maximum Contribution Amount (IRC Section 415 Limit)

Federal law limits the total amount of contributions that may be contributed to certain Indiana University retirement plans on behalf of an employee for any calendar year. The total amount contributed cannot exceed the lesser of 100 percent of the employee’s compensation for the year or $44,000 in 2006. (The IRS adjusts the contribution limit periodically for increases in cost-of-living).

Vesting

A participant must terminate employment with Indiana University and satisfy one of the following vested events in order to become 100% vested in his or her Plan account:

1. Attainment of age 55 while in active employment status with Indiana University (or, if later, the date the participant has completed 9 months of active employment with Indiana University following an unpaid leave of absence); or
2. Attainment of age 55 while disabled, provided that the participant’s disability was continuous from his or her last day in active employment status with Indiana University to the participant’s attainment of age 55. “Disabled” or “disability” means a participant has been awarded disability by the Social Security Administration.

In the event of a participant's death, the participant will become 100% vested if he or she had at least 10 years of full-time service with Indiana University.

Forfeiture

A non-vested participant will forfeit his or her Plan account upon the earlier of:

1. Termination of employment with Indiana University, provided the participant is not disabled;
2. The date the participant no longer satisfies the eligibility requirements for participation in the IU Retirement Plan 12% contribution level because of a voluntary job transfer within Indiana University; or
3. For a participant who was disabled as of his or her date of termination of employment, the date the participant attains age 55 while not actively employed with Indiana University if the participant’s disability was not continuous from his or her last day in active employment status with Indiana University to the participant’s attainment of age 55.

Investments

The Plan is a participant directed plan. This means that each participant is responsible for directing the investment of his or her Plan account. A participant may direct the investment of his or her Plan account among any investment funds provided under the Plan. A participant may also transfer monies from one investment fund to another.

A participant's election to invest his or her Plan account, to change the investment direction of future contributions, or to transfer amounts from one investment fund to another must be made in accordance with the rules established by Indiana University.

Indiana University has approved of the following investment companies under the Plan:

TIAA-CREF and Fidelity Investments do not generally charge participants the following types of fees: front end / sales load fees, account maintenance fees, cash-out or transfer fees. However, each individual fund will have minimum management fees as specified in the fund's prospectus.

Each investment company reports net investment return figures, which reflect investment performance after administrative expenses are deducted.

Participants should contact the investment company for more information about fees before investing with that company.

Distributions and Withdrawals

A vested participant may only withdraw funds from his or her Plan account upon termination of employment with Indiana University.

Hardship Distributions

Hardship distributions are not allowed to be made to a participant from the Plan.

Loans

Loans are not allowed to be made to a participant from the Plan.

Timing of Distribution

Upon termination of employment, a vested participant must take a complete distribution of his or her Plan account within 90 days after the last day of the plan year in which the participant terminated employment with Indiana University.

Forms of Distribution

A participant may choose to:

• Transfer balances to an IRA at TIAA-CREF or Fidelity Investments;
• Withdraw all or a portion of the Plan account accumulations (subject to income taxes); or
• Roll over all or a portion of the Plan account accumulations to an eligible retirement plan (e.g., IRA)

In the absence of participant direction, a vested participant’s Plan account will be automatically rolled over to an IRA established on behalf of the employee within 90 days after the last day of the plan year in which the participant terminates employment.

Taxes on Distributions

Plan distributions are generally subject to a 20% mandatory federal income tax withholding rate. This mandatory withholding will reduce the amount a participant actually receives upon withdrawing funds from the Plan. However, the amount withheld will be credited against any taxes the participant owes for the year when the participant files his or her annual tax return.

There are exceptions to the mandatory federal income tax withholding rule, including receiving the Plan distribution as a life-time annuity payment or directly rolling over the Plan distribution to an eligible retirement plan (e.g., an IRA).

Direct Rollover Distributions

A direct rollover of an eligible rollover distribution may be made at the participant's election. A direct rollover is a payment of an eligible rollover distribution from the Plan directly to another eligible retirement plan, such as a 401(a) plan, 403(b) plan, 401(k) plan, governmental 457(b) plan, or IRA. However, certain types of distributions, such as life-time annuity payments, are not eligible for direct rollover treatment.

Qualified Domestic Relations Orders (QDROs)

Indiana University may be required by law to recognize obligations a participant incurs as a result of a qualified domestic relations order (QDRO). A QDRO is a decree or order issued by a court that obligates the participant to pay child support or alimony, or otherwise allocates a portion of the participant's assets in the Plan to his or her spouse, former spouse, child, or other dependent (collectively known as "alternate payees").

A distribution authorized by a QDRO to an alternate payee will be permitted under the Plan, even if the affected participant is not currently eligible for a Plan distribution.

Questions or Comments

The IUSERP– Summary of Plan Provisions booklet contains a detailed description of the terms and conditions of the Plan. A copy of the booklet may be obtained from this website or by contacting the campus Human Resource office.

Please contact University Human Resource Services with any questions or comments regarding the Plan at:

University Human Resource Services
Attn: IUSERP
400 East 7th Street, Poplars E165
Bloomington, Indiana 47405-3085

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.