Understanding Your Ball State University Retirement Plans New Faculty Orientation

Ball State UniversityEducation Redefined

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 Contributions Investment Options Enrollment Process

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AGENDA (cont’d) Teachers’ Retirement Fund

Description Contributions Investment Options Enrollment Process

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AGENDA (cont’d) Voluntary Retirement Savings Plan

Descriptions Contributions Investment Options Enrollment Process

Important Reminders

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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.

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APP DESCRIPTION

Defined contribution plan 100% immediate vesting University funded University contributions plus/minus earnings are available

upon termination of employment

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APP CONTRIBUTIONS

5% of gross wages for first 3 years

10.5% of gross wages thereafter

Contributions are made on a monthly basis

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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

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APP ENROLLMENT PROCESS

Quick guide to information about APP: Letter to new employee APP at a Glance TRF and APP Comparison APP Enrollment Form

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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



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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



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TEACHERS’ RETIREMENT FUND DESCRIPTION Two part plan design

Annuity savings account (ASA)

Pension benefit



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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



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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



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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)



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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



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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



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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)



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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



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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



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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



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PEBAdministration Building

Room G29

Susan Kobrin – Retirement Plan [email protected]/285-8404

Stacey French – Retirement Plan Specialist [email protected]/285-8470

Understanding Your Ball State University Retirement Plans New Faculty Orientation

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