4.72 Retirement Annuity Plans (IPERS, TIAA-CREF, Substitute, Supplemental,
Repurchase, Refund, etc.)
All University personnel are covered by the Social Security Program offered
under the Federal Insurance Contribution Act. Participation in a University
retirement plan is compulsory for eligible staff members.
Actively serving University personnel holding other that a temporary appointment
with annual earnings of $7,800 or more must elect to participate in either
IPERS, the Teachers Insurance and Annuity Association-College Retirement
Equities Fund (TIAA-CREF), or a qualified substitute retirement annuity
plan.
IPERS - The University contributes 5.75% while the participating staff member
contributes 3.70% of earnings up to the maximum covered wages prescribed
by law.
Coverage under IPERS is effective during any quarterly period in which earnings
of $300 or more are provided, unless employment is of a temporary nature
(period of less than 6 months) and is mandatory for University personnel
serving with temporary status and/or annual earnings of less than $7,800.
TIAA-CREF - University personnel with less than 5 years of service and participating
in TIAA-CREF or a qualified substitute retirement plan are required to contribute
3-1/3% on the first $4,800 of earnings and 5% on the remainder of salary
to their retirement accounts. The University's contribution to an annuitant's
retirement account during the same period will be equal to twice the staff
member's contribution. Upon completion of 5 years of service, the $4,800
base is eliminated; and then the employee contributes 5% and UNI 10% on
all earnings.
Substitute Retirement Annuity Plan - Newly eligible University personnel
may elect to participate in an annuity program other than TIAA-CREF, provided
they have not made application for a TIAA-CREF retirement annuity contract
and were participating in the plan through their last employer. The plan
must fully meet program specifications established by the Board of Regents
and be approved by the University. The same contribution provisions noted
above for TIAA-CREF apply to the qualified substitute annuity plan.
Summer Session and Special Compensation Contributions - Annuity program
participation applies to non-temporary faculty members listed in the summer
session budget or addendum when those members have participated during the
preceding academic year. Participation does not apply to faculty or staff
Extension Class service, non-credit program instruction, or other special
compensation involving activities such as summer sports camps, summer theatre
repertory, cheerleader clinics, honoraria, etc.
Added Retirement Plan Contributions - Staff members may contribute added
funds to their regular retirement plan accounts by requesting increased
employee contributions. No matching UNI contribution is made for these funds.
Supplemental Retirement Annuity (SRA) Programs - The SRA program permits
the staff member to take a reduction (tax shelter) in salary with the contributions
remitted directly to an approved supplemental retirement account. SRA plans
are designed for staff members who may be interested in setting aside additional
tax deferred funds in addition to those being accumulated under the University's
regular basic retirement plan. The University does not contribute matching
funds to SRAs.
Additional information on supplemental retirement annuity accounts is available
in the Personnel Office.
TIAA/CREF Convertibility - On May 18, 1999, the Iowa Board of Regents approved a permanent convertibility policy. Retirees and former employees of the Iowa Board of Regents who are at least 55 years of age are allowed to convert all employee and employer contributions and all accumulations to the extent permitted by TIAA-CREF. TIAA-CREF allows full convertibility of all funds in CREF accounts and convertibility of funds in the TIAA account over a ten year period.
Former employees who are less than age 55 are permitted convertibility of up to one-third of the TIAA-CREF accumulation, also according to the TIAA-CREF guidelines. This convertibility is intended to provide for convertibility of the employee’s contributions and accumulations on the employee contributions in the account(s).
Former employees and retirees who are interested in exercising the convertibility option will be required to sign a waiver releasing the institution and the Board of Regents of liability for their decision.
IPERS Refund - A refund from the Iowa Public Employees Retirement System
(IPERS) is available when participation with the program ceases by reason
of the staff member's termination or election to participate in TIAA-CREF
or an approved substitute annuity plan. The staff member, by completing
a refund application, is eligible to receive the employee contributions
in full plus interest earned as of the date of termination. All contributions
made by the University in the name of the staff member are retained by IPERS.
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