Policies index

 

A. Social Security

B. Plan

C. Contribution levels

D. Retiree status

E. Classification changes

See also:

IU Retirement Plan

 

Tools:

 

Base Retirement Plan for Professional Staff
PA/SS 9.4

Revised July 1, 2005

Employees covered by this policy
This policy applies to Professional Staff at 50 percent or more FTE. Under federal law, there is no mandatory retirement age.

A. Social Security

All employees are included under FICA (Social Security) and OASI (Old Age and Survivors Insurance).

B. IU Retirement Plan for professional staff

1. The IU Retirement Plan for professional staff is a defined contribution plan in accordance with the Internal Revenue Code Section 403(b) and the university makes all contributions on the participant's behalf.

   1. IU contributions go to specific fund options with TIAA-CREF (Teachers Retirement Annuity Association-College Retirement Equity Fund) and/or Fidelity, at the employee's choice.

2. Participants are immediately 100% vested in the funds the university contributes to their accounts, as well as any earnings associated with contributions.

3. Participants can begin their income from the IU Retirement Plan at any age after termination of employment.

C. IU contribution levels

1. There are four contribution levels to the IU Retirement Plan based on a participant's percent of appointment (FTE), rank, and date of enrollment.

   1. The contribution level is 10% of base salary for 50% FTE or greater appointed professional staff in all levels enrolled on or after July 1, 1999.

   2. The contribution level is 11.25 % of total wages for 100% FTE appointed professional staff in levels 15 or below and professional staff with the following minimum appointments enrolled prior to July 1, 1999.

      • 50% FTE for 12 pay cycles

      • 60% FTE for 10 pay cycles

      • 65 % FTE for 9 pay cycles

   3. The contribution level is 12% of base salary for 100% FTE appointed professional staff in levels 16 or above enrolled between January 1, 1989 and June 30, 1999.

   4. The contribution level is 11% of the first $7,800 of base salary and 15% of base salary thereafter for 100% FTE appointed professional staff in levels 16 or above enrolled prior to July 1, 1989.

D. IU Retiree status

1. A Retiree of Indiana University will be entitled to the following IU benefits, which are separate from retirement income benefits:

1. Life insurance (paid by IU); see Basic Life Insurance policy.

2. Fee Courtesy; see Fee Courtesy.

3. Medical and dental coverages; see Medical and Dental Coverages policy.

2. In order to qualify as a Retiree, an IU employee must have Retiree status according to the following age and service requirements:

   Age at termination	Years of IU service*	Age at termination	Years of IU service
   55	30	61	18
   56	28	62	16
   57	26	63	14
   58	24	64	12
   59	22	65 or over	10
   60	20

   * Years of IU Service means the years of full-time appointed service at Indiana University.

   E. Classification changes

   1. If a professional staff member voluntarily transfers to a position and becomes eligible for a different retirement plan, then he or she will be enrolled in that plan. The staff member does not retain enrollment in the former plan.

   2. If a professional position is reclassified or a professional employee transfers (through no choice of the employee) to a position covered under a different retirement plan, then he or she has the choice of retaining the current plan or switching to the plan for the new position.