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Understanding Your Ball State University Retirement Plans New Faculty Orientation

Understanding Your Ball State University Retirement Plans New Faculty Orientation 2014. Ball State University Retirement Plans. AGENDA Pension Plan Options Alternate Pension Plan (“APP”) Teacher’s Retirement Fund (“TRF”) Alternate Pension Plan Description

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Understanding Your Ball State University Retirement Plans New Faculty Orientation

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  1. Understanding Your Ball State University Retirement Plans New Faculty Orientation 2014

  2. Ball State University Retirement Plans AGENDA • Pension Plan Options • Alternate Pension Plan (“APP”) • Teacher’s Retirement Fund (“TRF”) • Alternate Pension Plan • Description • Contributions • Investment Options • Enrollment Process

  3. Ball State University Retirement Plans AGENDA (cont’d) • Teachers’ Retirement Fund • Description • Contributions • Investment Options • Enrollment Process

  4. Ball State University Retirement Plans AGENDA (cont’d) • Voluntary Retirement Savings Plan • Descriptions • Contributions • Investment Options • Enrollment Process • Important Reminders

  5. Ball State University Retirement Plans PENSION PLAN OPTIONS (1) Alternate Pension Plan (APP) (2) Teachers’ Retirement Fund (TRF) • These plans are fully paid by the University. • The enrollment deadline is 60 days after your date of hire.

  6. Ball State University Retirement Plans APP DESCRIPTION • Defined contribution plan • 100% immediate vesting • University funded • University contributions plus/minus earnings are available upon termination of employment

  7. Ball State University Retirement Plans APP CONTRIBUTIONS • 5% of gross wages for first 3 years • 10.5% of gross wages thereafter • Contributions are made on a monthly basis

  8. Ball State University Retirement Plans APP INVESTMENT OPTIONS • Vendors • ING • Fidelity Investments • Lincoln Financial Corp • TIAA-CREF • Approved investment fund options by company • Target date asset funds available • Flexibility to change investment funds

  9. Ball State University Retirement Plans APP ENROLLMENT PROCESS • Quick guide to information about APP: • Letter to new employee • APP at a Glance • TRF and APP Comparison • APP Enrollment Form

  10. Ball State University Retirement Plans APP ENROLLMENT PROCESS • Designate your chosen investment company (multiple companies can be selected) • Separate application required to establish BSU account with investment company (University contributions cannot be made if account is not established); available from vendors/PEB website • Designate investment funds • Complete Ball State University Alternate Pension Plan & Designation of Investment Company Election Form and turn in to PEB; available on PEB website

  11. Ball State University Retirement Plans TEACHERS’ RETIREMENT FUND DESCRIPTION • Defined benefit plan • Administered by Indiana Public Retirement System (INPRS) • Annuity and pension benefit • University funded • Contribution rate determined by State

  12. Ball State University Retirement Plans TEACHERS’ RETIREMENT FUND DESCRIPTION • Two part plan design • Annuity savings account (ASA) • Pension benefit

  13. Ball State University Retirement Plans TEACHERS’ RETIREMENT FUND CONTRIBUTIONS • Annuity Savings Account • 3% contribution made by University • Optional voluntary contributions by member • Pre-tax election irrevocable for as long as member is BSU employee • 2 year window after 5 years of service credit • Special rules for post-tax election • 100% immediate vesting • Contributions plus/minus investment earnings can be withdrawn at termination

  14. Ball State University Retirement Plans TEACHERS’ RETIREMENT FUND CONTRIBUTIONS • Pension Benefit • University contributes State mandated contribution percentage • Benefit = average of highest 5 years of annual compensation x total years of service x 1.1% • Vesting • 10 years of TRF credited service entitles member to monthly benefit at 65 • Credited service < 10 years yields no pension benefit, only annuity • Rule of 85 • TRF member’s age is 55 – 59 + years of credited service = 85 or more • TRF member’s age is 60 – 64 + 15 years of credited service • Early retirement • Eligible for reduced pension at age 50 - 59 + 15 years of credited service

  15. Ball State University Retirement Plans TRF INVESTMENT OPTIONS • Investment election available for Annuity Savings Account and optional voluntary contributions only • Refer to Indiana Public Retirement System website (www.inprs.in.gov)

  16. Ball State University Retirement Plans TRF ENROLLMENT PROCESS Retirement Plan Enrollment Kit • TRF at a Glance • TRF and APP Comparison • TRF application is available on the PEB website • Complete form and return it to PEB as soon as possible

  17. Ball State University Retirement Plans VOLUNTARY RETIREMENT SAVINGS PLANS DESCRIPTIONS • 403(b) Tax Deferred Annuity (TDA) with ROTH after-tax option • 457(b) Deferred Compensation Plan • TRF Pre-tax after 5 years of credited service • TRF After-tax

  18. Ball State University Retirement Plans VOLUNTARY SAVINGS PLANS CONTRIBUTIONS • Employee only contribution • Designate a percentage of gross wages • Contribution subject to IRS maximum ($17,500 for 2014) • Catch-up contribution available for participants age 50 and over ($5,500 for 2014)

  19. Ball State University Retirement Plans VOLUNTARY RETIREMENT SAVINGS PLANS INVESTMENT OPTIONS • Six investment companies for 403(b) TDA • AUL/One America • Equitable • Fidelity • ING • Lincoln National Corp • TIAA-CREF • Two investment companies for 457(b) • Fidelity • TIAA-CREF • No restrictions on fund selection

  20. Ball State University Retirement Plans VOLUNTARY RETIRMENT PLANS ENROLLMENT PROCESS • Separate election required • 403(b) and 457(b) • Designate your chosen investment company • Separate application required to establish BSU account with investment company (contributions cannot be made if account is not established) • Designate investment funds • Complete 403(b) and 457(b) Plan Salary Reduction Agreement and turn in to PEB • TRF – contact Indiana Public Retirement System • No deadline to join except TRF pre-tax

  21. Ball State University Retirement Plans IMPORTANT REMINDERS • Deadline for APP or TRF Election is 60 days after date of hire • If no election form is submitted, pension election will default to TRF and cannot be changed • For APP, 403(b) and 457(b), establish account with investment company, then complete appropriate form

  22. Ball State University Retirement Plans PEB Administration Building Room G29 Susan Kobrin – Retirement Plan Administrator skkobrin@bsu.edu/285-8404 Stacey French – Retirement Plan Specialist slfrench@bsu.edu/285-8470

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