Eligibility
- Non-exempt employees hired before 3/1/01
- Public Safety employees hired before 7/20/01
- Library Union employees
Eligible employees who are regularly scheduled to work 1,000 or more hours per year (i.e., 51% or more time) are generally considered eligible to participate in the plan* and may receive University contribution. Employees working less than 1,000 hours per year may make voluntary contributions to the plan.
*Retirement benefits for eligible employees may vary in several ways; percent time worked and employee group are primary factors.
Contributions
Basic Contribution
As an eligible Plan participant, you must make a basic employee contribution of 2% of your retirement-eligible salary as a condition of employment, starting on the first day of the month following six full months of employment.
University Contributions
You will be eligible for a monthly University contribution to the Plan on your behalf, also determined as a percentage of your eligible salary, beginning the first of the month following completion of six months of employment. University contributions vary depending upon your age and years of service. The following table illustrates the different levels of employee and University contributions:
|
Basic |
University Contributions For Employees Below Age 55 |
University Contributions |
|---|---|---|
|
2% |
8% |
10% |
*This plan feature became effective January 1, 2001.
Voluntary Contribution
Eligible employees may make additional voluntary contributions starting on the first day of the month following their date of employment. The minimum contribution is $200 per year. You may change your level of additional voluntary contributions as frequently as monthly in Workday.
Maximum Deferral
Your maximum voluntary contribution, otherwise known as the maximum elective deferral, is established by federal guidelines. Your mandatory employee contributions to the Plan (i.e., 2%) are not counted as part of your contribution limit.
Annual contribution limits as set by the IRS for the current year.
Your employment status, percent time, salary, and leaves of absence may affect the amount you can defer. Additionally, the contribution limit set by the IRS applies to all retirement plans with elective deferrals in which you may be participating, such as another employer's 401(k) or 403(b) plans.
If you are, or will be saving for retirement through another personal plan or another employer's plan, you should inform the Benefits Office representative at your new hire orientation, so that we can assist you with identifying the applicable limit for your contributions.
Vesting
As a participating eligible employee, you are fully and immediately vested in this Plan.
Hardship Withdrawals
If you or your beneficiary has an immediate and heavy financial need that cannot be satisfied by any other means, you may qualify for a withdrawal of your voluntary contributions due to a hardship. The Plan defines an “immediate and heavy” financial need as one or more of the following:
- purchase of a primary residence or prevention of eviction from or foreclosure on a primary residence (not including normal monthly mortgage or rent payments)
- post-secondary tuition for you or your dependent
- unreimbursed medical bills
- funeral expenses for your dependent
Other reasons for withdrawal such as payment of debts and home repairs will not be considered under the terms of the Plan. You must document both the nature and amount of the need and show that you have reasonably exhausted all other resources. If your application for a hardship withdrawal is approved, you are also permitted to withdraw an additional amount anticipated to cover the income taxes and penalty involved.
The information available above represents a summary of the plan's eligibility and benefits. In the event of a conflict between the above information and the plan document, the plan document will apply.