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Home > Benefits > Retirement & Savings Plan

Retirement & Savings Plan

On this page: Plan Highlights | EligibilityContributions | Distributions and Withdrawals | Individual Counseling | Investments | Questions or Comments

Plan Highlights

Eligibility

To be eligible to participate in the Plan, an employee must be hired on or after July 1, 2013:

The following individuals are prohibited from participating in the Plan:

Commencement of Participation

An eligible employee begins participating in the Plan upon his or her date of hire into an eligible class of employees.

Restricted Participation

An employee is no longer eligible to receive an allocation of Plan contributions if:

In the event an individual becomes ineligible to receive an allocation of Plan contributions:

Contributions

Indiana University contributes up to 8 percent of a participant’s actual base wage. The Plan has two separate and distinct contribution components.

Retirement & Savings Plan Contribution

A participant will receive an amount equal to 4 percent of his or her actual base wage for each regular per pay period he or she is eligible to participate in the Plan. Base wage does not include any supplemental pay received by the eligible participant during the pay period.

Retirement & Savings Plan Match Contribution

A participant will receive an amount equal to the participant’s designated contributions to the IU Tax Deferred Account Plan (TDA) during such pay period, up to 4 percent of his or her actual base wage received during such pay period. 

Participants are not required, nor permitted, to make additional contributions to the Plan.

Vesting

Participants in the Plan are subject to a three-year cliff Vesting requirement. A Participant’s Account is fully Vested upon: 1) completion of three years of IU employment as a Plan Participant in an IU-sponsored Base plan; 2) Death; 3) Disability as defined by Social Security; or 4) attainment of age 65. Employment with an affiliated entity does not count toward years of IU employment for Vesting. If a Participant subject to Vesting terminates employment prior to becoming fully Vested, the Participant’s Account is forfeited upon termination. If a Plan Participant terminates employment before Contributions and earnings are fully Vested, and returns to IU employment as a Plan Participant within six months of termination, the forfeited Account Balance on the date of termination will be reinstated as soon as administratively possible. The returning Employee remains subject to Vesting, with prior years of Vesting service counting toward the three-year cliff Vesting requirement.

Taxes on Contributions

Contributions will not be included in a participant's income reported to the federal government for income tax purposes.

Military Service

The Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA) provides eligible individuals who return to employment with Indiana University from a period of military service with several employee benefit rights, including retirement plan benefit rights.

Upon reemployment or reinstatement following a period of military service, Indiana University may be required to restore any Plan benefits that would had been earned by the eligible employee for any portion of the military service period for which the employee would otherwise have been a participant had he or she continued working with Indiana University.

If an employee returns to work following a period of military service, please contact University Human Resource Services (UHRS) immediately.

Rollover Contributions

Rollover contributions are not allowed to be made to the Plan.

Distributions and Withdrawals

Distributable Events

A participant may only withdraw vested funds from his or her Plan account upon termination of employment with Indiana University. Distributions from the Retirement & Savings Plan are allowed for former employees rehired into non-eligible positions if the rehired employee has at least a continuous 30-day break in service from the date of the employee’s last day of employment.

Forms of Distribution

A participant may choose to receive a distribution of his or her Plan account in any one of the following forms or combination of forms:

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.

Minimum Required Distributions

Federal law requires that distribution of a participant's Plan account, regardless of the form, must begin on or before April 1st of the calendar year following the calendar year in which he or she attains age 70½ or the calendar year in which the participant retires, whichever is later.

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 court order relating to child support, alimony, or martial property rights. Indiana University must honor a qualified domestic relations order, which is defined as 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 distribution under the Plan. Participants should contact their chosen investment company(ies) for administration of the QDRO.  

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).

In addition, Plan distributions made prior to attainment of age 59½ are generally subject to a 10% early withdrawal penalty tax.

There are exceptions to the 10% early withdrawal penalty tax, including: receiving the Plan distribution as a life-time annuity payment or receiving the Plan distribution after terminating employment due to a permanent disability.

Rights and Privileges after Termination of Employment

A participant is not required to cash-out or transfer his or her Plan account upon termination of employment. Upon termination of employment, a participant may:

After terminating employment with Indiana University, most transactions related to a participant's Plan account are handled directly by the participant with the applicable investment company.

Participant Responsibilities

Upon termination of employment with Indiana University, a Plan participant must:

Individual Counseling

IU offers individual counseling services for all eligible IU retirement plan participants.  The University Retirement Program Services team is dedicated to working with IU employees to answer retirement plan questions and prepare for retirement readiness.

To schedule an appointment email .

In addition, the University’s two approved investment companies, Fidelity Investments and TIAA-CREF, offer investment counseling. More information about these companies is available in Investments.

Investments

General Terms and Conditions

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 choose an investment company(ies), 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 the Plan Administrator. In addition, the Plan Administrator has adopted rules and procedures for the investment of amounts for which no elections are received.

Authorized Investment Companies

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

Company Address Telephone Numbers Web site
TIAA-CREF 730 Third Avenue
New York, NY 10017
Service:
    800-842-2776

Appointment Scheduling:
    800-732-8353

Overseas: www.att.com/esupport/
traveler.jsp?iso2=BE
www.tiaa-cref.org/tcm/indiana
Fidelity Investments 82 Devonshire Street
Boston, MA 02109
Service:
    800-343-0860

Appointment Scheduling:
    800-642-7131

Overseas:
    877-343-0860
plan.fidelity.com/indiana

Representatives from TIAA-CREF and Fidelity Investments are available to meet with participants to discuss investment options.

Investment Company Fees

TIAA-CREF and Fidelity Investments do not charge the following fees: front end / sales load fees, account maintenance fees, 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. 

Account Statements

Participants will receive account statements from each investment company in which Plan contributions are invested each calendar year quarter. Account statements detail all investment activities including contributions, earnings (or losses), and transfers. This information is always available online at the investment company web site.

Investment Advisors (Agents and Brokers)

Indiana University does not provide any participant information to an investment advisor without the express written consent of the participant.

Questions or Comments

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

University Human Resource Services
Attn: Retirement & Savings Plan
400 East 7th Street, Poplars E165
Bloomington, Indiana 47405-3085

Phone: 812-856-5191

 

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Page updated: 9 June 2014
UNIVERSITY HUMAN RESOURCES
Contact Retirement: • 812-855-2172

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