Frequently Asked Questions
on IPERS Refunds and
TIAA-CREF Cash Withdrawals
IPERS Refunds
Will I get everything in my IPERS account?
No. If you are not vested (less than 4 years), you will receive only your contributions (currently 3.9% of your salary, 4.1% beginning 7/1/08) plus the earnings. If you are vested (4 years or more), you will receive your contributions plus a prorated portion of the employer’s contributions (reaching 100% after 30 years of service) plus earnings.
Can you tell me how much is in my IPERS account?
No. We do not have a cumulative record of IPERS contributions. IPERS sends an annual report in May of each year. The participant can call IPERS at 1-800-622-3849 and request information.
If I switch from “temporary” to “permanent” employment and now enrolled in TIAA-CREF, can I get an IPERS refund?
No. The University of Iowa is an IPERS covered employer. Current law states that an individual may not receive an IPERS refund unless they are no longer employed under an IPERS covered employer.
Can I transfer my IPERS to TIAA-CREF?
Only if you are no longer employed under an IPERS covered employer. Current law* states that an individual may not roll (transfer) their IPERS money to any account outside of IPERS unless they are no longer employed under an IPERS covered employer. The University of Iowa is an IPERS covered employer.
*Administrative Code of Iowa, Section 495-9.1(97B). See also chapter 9, page 37 (out of 106) of the member’s guide.
Can I roll my IPERS funds to an IRA?
Only if you are no longer employed under an IPERS covered employer. Current law* states that an individual may not roll (transfer) their IPERS money to any account outside of IPERS unless they are no longer employed under an IPERS covered employer. The University of Iowa is an IPERS covered employer.
*Administrative Code of Iowa, Section 495-9.1(97B). See also chapter 9, page 37 (out of 106) of the member’s guide.
How soon can I expect my refund?
We cannot say when the person will receive their refund. The IPERS appointment must show a termination date before we can complete the “employer” section of the IPERS paperwork. If IPERS processes the refund and additional contributions are remitted later, a second refund check will be issued. If a refund is issued, the employee cannot become re-employed under an IPERS covered employer within 30 days of the refund being issued, or the money must be paid back to IPERS.
TIAA-CREF Cash Withdrawals
Will I get everything in my TIAA-CREF account?
YES, Both the employee and University contributions are fully and immediately vested. This means that you own all contributions to your account even if you leave the University before retirement.
Can you tell me how much is in my TIAA-CREF account?
You will be mailed a quarterly statement from TIAA-CREF to your home address. You can also access your account on www.tiaa-cref.org with your user ID and password or by contacting TIAA-CREF at 800-842-2776.
When I terminate employment, what can I do with my TIAA-CREF account?
-
Leave the funds invested with TIAA-CREF
-
Repurchase if your TIAA-CREF account balance is under $10,000 and your TIAA Traditional is under $2000
-
Cash Withdrawal from all but the TIAA Traditional account
-
Transfer Payout Annuity from the TIAA-Traditional account. This is paid out in 10 increments over 9 years
-
Rollover TIAA-CREF to an eligible account.
Where do I get TIAA-CREF forms?
You can print some forms from the web site at www.tiaa-cref.org or you can call the TIAA-CREF customer service number at 800-842-2776.
Will my refund be subject to any taxes or penalties?
Unless the funds are rolled to an IRA, TIAA-CREF is required to withhold 20% for federal tax. Iowa is a mandatory withholding state and 5% will be withheld. If the employee is under 59 1/2, the employee is also subject to a 10% federal penalty (unless they separate from employment at age 55 or older).