Transcript Early Retirement Incentive Offer Overview
Purdue Calumet-Faculty Senate October 6, 2010
Must be 60 years of age: Staff by January 31, 2011 or Tenured Faculty by June 30, 2011 Must have been employed by the University in a benefits-eligible position for ten (10) or more years
Health Savings Reimbursement account (HRA) $35,000 for qualified medical expenses and those of eligible dependents (including health insurance premiums) $7,000 will be available for reimbursements over a five year period Separation Pay Tenured Faculty: One-half of annual base salary ▪ Faculty retiring by June 30, 2011 will receive Separation Pay July 29, 2011 Staff: One-fourth of annual base salary ▪ Biweekly staff retiring by January 31, 2011 will receive Separation Pay on February 23, 2011 ▪ Monthly staff retiring by January 31, 2011 will receive Separation Pay on February 28, 2011
139 Eligible 19 Requests Administrative – 7 Clerical – 4 Service – 2 Faculty – 6
No new VEPR arrangements will be approved during the retirement incentive window September 1, 2010 through October 29, 2010
Faculty and Administrative staff who receive TIAA-CREF contribution are impacted Effective 1/1/11 these individuals will receive a 4% increase which will be redirected to the 401(a) University will contribute 10% to 403(b) Current VEPR’s – no change in contribution 11%/15% Three year waiting period Current participants as of 12/31/10 will have their salaries increased and begin the 10% University contribution and 4% to the 401(a) upon completing their three year waiting period Individuals hired 1/1/11 and after will begin their 4% mandatory contributions to the 401(a) immediately upon hire. Purdue 10% will begin upon completion of three year waiting period
University studied and determined faculty/staff could increase their retirement savings if they paid lower fees More choices for faculty/staff Roth IRA-403b voluntary contributions Tiered Investment Approach Provide objective guidance and education to plan participants both in accumulating assets and distribution of assets
You must select your investment options and beneficiaries by December 31, 2010 Online http://plan.fidelity.com/purdue Phone 1-800-642-7131 In Person (Sessions on campus are 10/25 and 10/26. More group and one/one sessions to come in November and December)
This decision does not need to be made by a specific deadline! You can discuss with your financial advisors and Fidelity to see what your options are. Most likely decisions will be: Nothing – let it stay at TIAA-CREF, or Roll it over to Fidelity (discuss with Fidelity)
Plan administrative Fees – Fidelity will charge participants a flat quarterly fee of $21.75/annually $87 regardless of account size Asset Based Fees- Fees charged for the funds you have selected. Compare investment fees of each fund offered when you enroll.
Individual Service Fees – Initiating a loan or conducting certain transactions within the self-directed brokerage account.
TODAY the average administrative fee for a retirement accumulation of $100,000 is $250 a year – increases to $500 a year for $200,00 accumulation etc
Stay tuned to the University Senate meeting on Thursday, October 7, 2011 at 8:00 a.m. in Alumni Hall