Policy Library
535 Retirement Benefits
Authority: Approved by the Board of Trustees
Last updated on: July 29, 2022
535.1 Faculty, Exempt and Non-Exempt Professional Staff: TIAA Retirement Plan
535.1.1 General. Indiana State University participates in the Teachers Insurance and Annuity Association retirement program. The Indiana State University Board of Trustees approved a Teachers Insurance and Annuity Association - College Retirement Equities Fund (TIAA) Revised Retirement Plan effective July 1, 1967. All new Regular Faculty, Exempt Staff, and Non-Exempt Professional Staff are required to participate in the TIAA Retirement Plan upon eligibility.
535.1.2 Eligibility for Immediate Participation. Regular Faculty, Exempt Staff, and Non-Exempt Professional Staff are eligible to participate in the TIAA Retirement Plan immediately upon employment.
535.1.3 Management of Investment Options. The TIAA Retirement Plan provides a variety of investment options. Each participating employee may elect and change investment strategy as often as allowed by TIAA.
535.1.4 Contribution Rate. Participating employees will receive University contributions to the TIAA Retirement Plan calculated at ten (10) percent of the base appointment salary. Eligible faculty teaching summer courses will receive University contributions calculated at ten (10) percent of summer earnings. University contributions vest immediately.
535.1.5 Cash Option. Effective July 1, 1994, the ISU Board of Trustees approved a cash option on TIAA Regular Retirement Annuity contracts. Upon any separation from service, cash is offered to
A. Individuals with less than five (5) years of participation or contributions, or
B. Individuals older than age 55 with more than five (5) years of contributions.
Separated employees who withdraw funds from TIAA may have tax liability and are advised to seek tax consultation prior to withdrawal.
Additional information is available in the Office of Employee Benefits.
535.2 Non-Exempt Staff: Indiana Public Retirement System
535.2.1 Eligibility. All Regular Non-Exempt Staff participate in the Indiana Public Retirement System (INPRS) immediately upon employment.
535.2.2 Contribution Rate. Participating employees must contribute 3 percent, which is paid by Indiana State University. The University also contributes an additional amount that is determined actuarially each year by INPRS.
535.2.3 About INPRS. INPRS provides retirement annuity and pension benefits, disability income benefits, early retirement, and death benefits. A detailed description of the benefits available is contained in the Indiana Public Retirement System Member Handbook and is available at www.in.gov/inprs.
535.3 Tax-Deferred Annuities IRC 403(b)
The Indiana State University Board of Trustees has approved the participation of Regular Faculty and Regular Staff in tax-deferred annuity programs under Section 403(b) of the Internal Revenue Code. Such contributions are subject to Internal Revenue Code maximums.
535.4 Deferred Compensation Plan IRC 457(b)
All employees are eligible to take advantage of making additional pre-tax contributions toward retirement savings. There is an annual limit on contributions to this plan. Further detailed information may be secured from the Office of Employee Benefits.
535.5 TIAA Auto-Enroll
To facilitate retirement savings, all new employees will have an automatic three (3) percent deducted from each payroll check before taxes to contribute to a TIAA Group Supplemental Retirement Annuity. The employee is responsible for choosing the investments and beneficiary(s) after the contract has been established. The employee may choose to opt out of this contribution.
535.6 Normal Retirement Age
A "Normal Retirement" age of 65 will be used for benefit planning purposes. Certain University-sponsored benefit programs will be limited for those who continue employment beyond the "Normal Retirement" age. The following benefit limitations will apply:
535.6.1 Life Insurance. Term life insurance coverage will be 65 percent of the scheduled amount beginning July 1 following their 65th birthday. Accidental death and dismemberment coverage will be 65 percent of the scheduled amount beginning July 1 following their 65th birthday. Conversion privileges may apply; see the Office of Employee Benefits for further details.
535.6.2 Health Benefits. Coverage under the health benefits plan will be continued for employees, spouses, and eligible dependents who continue employment beyond normal retirement age 65. (See Policy 510 Employee Benefits Programs, Section 510.7 Health Coverage for Employees/Spouses Working Beyond Age 65.)
535.6.3 Disability Insurance. Coverage is extended until six (6) months prior to retirement.
535.7 Resignations/Terminations Other Than Retirement
Any individual whose appointment has been discontinued, who resigns, or who has been terminated prior to eligibility for retirement, and who has a vested interest in the financial retirement plans, shall be entitled to the financial benefits, if any, of the respective retirement plan. Such individuals do not qualify for continuation of University group insurance coverage’s following termination. The last day worked will be the effective date of separation in all cases except when the staff member fails to return from a leave of absence. The separation date may not be vacation, sick leave or convenience day.
535.8 Plan Administration
The Board of Trustees delegates the administration of the TIAA Retirement Plan to the Vice President for Finance and Administration. As plan administrator, the Vice President for Finance and Administration shall have the authority to manage the operation of the TIAA Retirement Plan. Benefit provisions are established and amended by the Board of Trustees.
The retirement plan for non-exempt employees is governed and administered by the State of Indiana through INPRS.
Related Information
Policy Administrator:
Office of Finance and AdministrationPolicy Contact:
Employee BenefitsRankin Hall Room 300
(812) 237-4152
ISU-HumanResources@mail.indstate.edu