- What choices do I have to save for retirement? What is the difference between TIAA-CREF and IPERS?
- Can I roll my 401(k) into the University’s retirement plan?
- When can I withdraw money from TIAA-CREF or IPERS?
- What are my TIAA-CREF income options when I retire from the University?
- Can I put "extra" money into my "basic" TIAA-CREF account?
- What is the Voluntary Retirement Savings Program?
- Who is eligible to contribute to the VRSP?
- How much can I contribute to the VRSP?
- Will the University match my VRSP contributions?
- How often can I change the amount of my VRSP contribution?
- How do I cancel my VRSP contribution?
- Can my contributions to the VRSP be with a company other than TIAA-CREF?
- Can I withdraw funds from my VRSP account/s ?
- Can I borrow from my VRSP account/s?
- Does my allocation to the VRSP have to be the same as for my "basic" account?
- Do my VRSP accounts earn the same rates of return as the "basic" account?
- What are the advantages of contributing to the VRSP?
- How do I sign up?
- I am thinking about retirement – what do I need to do?
- How does the Phased Retirement program work?
- Can my family and I continue health, dental, and life insurance when I retire?
- Will I have life insurance when I retire?
- What happens to my accrued vacation and sick leave when I retire?
- What should I know about Medicare and Social Security?
- Can I continue to purchase athletic tickets?
- Can I keep my University ID card? What are the associated privileges?
- Who can I contact regarding emeritus status?
- Is there an annual Open Enrollment for retirees to change plans?
- How do I stop health and/or dental coverage? If I stop coverage, can I enroll again at a later date?
- How do I pay for my insurance premiums?
- I am retired from The University of Iowa and will be turning age 65. What should I do?
- What should I know about Medicare Parts A, B, and D?
- When will I receive the Certificate of Creditable Coverage for Medicare Part D?
- How do I keep my current information updated, i.e. address, beneficiaries, Privacy form?
- There has been a death of a covered person, what do I need to do?
Eligible faculty and staff members participate in either the Iowa Public Employees Retirement System (IPERS) or the Teachers Insurance and Annuity Association College Retirement Equities Fund (TIAA-CREF). Serious consideration must be given to choosing a retirement plan because it is an irrevocable decision.
A comparison sheet for these two plans is available at the following web site: http://www.uiowa.edu/hr/benefits/retire/ipers_tiaa_compare.pdf
Yes. You can rollover retirement funds between 401(k), 403(a), 403(b), and IRAs. You may want to seek advice from a financial advisor before making a rollover.
The TIAA-CREF office in Coralville offers services available to you in relation to retirement savings and personal financial planning. You may request release time from work to schedule a visit to the TIAA-CREF Office in Coralville during normal business hours. You will be limited to one appointment per calendar year without using vacation, for a maximum of two hours. http://www.uiowa.edu/hr/benefits/retire/retire_tiaa_office.html.
When you terminate employment with The University of Iowa you will have access to your retirement funds. Contact TIAA-CREF at (800) 842-2776 or IPERS at (800) 622-3849 for withdrawal paperwork or refer to their web sites at www.tiaa-cref.org or www.ipers.org.
If you have less than $10,000 total in your account, of which no more than $2000 is in the TIAA Traditional account, you can remove all the money, including the University's contribution, by completing a Repurchase Form. A TIAA Transfer Payout Annuity cannot be in effect.
If you have over $10,000 in TIAA-CREF, you can remove up to 100% of your CREF funds. Monies in your TIAA account are restricted to no greater than a 10% cash option, providing you take the remaining 90% in a lifetime annuity. You do have an option to move your money out of TIAA into CREF, but to do so requires a nine-year transition period.
You may take the above monies in cash or you may roll them over into an IRA. If you take the monies in cash, you will be responsible for paying federal and state income tax. Retirees taking distributions from their TIAA-CREF accounts are not subject to the 10% IRS penalty generally applied to distributions prior to age 59 ½. If, however, you roll the funds into an IRA and then withdraw them from the IRA prior to age 59 ½, the penalty will be assessed.
Contact the TIAA-CREF customer service at (800) 842-2776 for withdrawal paperwork.
The University must provide a written verification of the termination date before a withdrawal can be processed. The University’s normal process is to submit the written verification after the first payroll cycle has occurred with no University Retirement Plan contributions. In order to have the withdrawal process expedited, the verification of termination can be submitted as soon as the termination date has occurred and is reflected in the payroll system, if the former employee signs and submits a Retirement Plan – Release of Funds Waiver.
There are many TIAA-CREF retirement options available to you when you retire from The University of Iowa.
- You may take up to 100% of your CREF accumulation in cash.
- You may set up a systematic withdrawal from CREF funds, whereby you determine the amount and frequency of payments.
- You may take a lifetime annuity.
- If you choose a lifetime annuity you may elect the Retirement Transition Benefit. This allows you to take a single cash payment of up to 10% of the amount of your accumulation of your annuity.
- You may share the lifetime annuity feature with another person. Under this situation, the lifetime annuity is guaranteed as long as one of you continues to live.
- There are guaranteed periods, of 10, 15, or 20 years, available that ensure that if you and your annuity partner should die, the monies will continue to be paid to your beneficiary.
- TIAA Traditional Interest-Only Option provides monthly payments that consist only of current interest credited to your TIAA Traditional Annuity accumulation. Because just the interest is paid to you, your accumulation remains untouched. This option is available to people ages 55 to 69 ½.
- The TIAA Traditional Transfer Payout Annuity allows you to withdraw funds in 10 annual payments of 10% of the amount you decide to withdraw.
- Upon reaching age 70 ½, there is a minimum distribution option. This is based on IRS guidelines. The option allows you access to your funds without having a lifetime annuity in place.
- For more information or to set up an individual meeting with a financial advisor at the TIAA-CREF Coralville office, call 319-356-8010 or go to http://www.uiowa.edu/hr/benefits/retire/retire_tiaa_office.html.
No. Extra contributions cannot be made to the "basic" retirement account. Extra contributions must be put into the VRSP (Voluntary Retirement Savings Program). Some VRSP contributions can be made on a tax-deferred or after-tax basis.
The Voluntary Retirement Savings Program is available for employees to make additional contributions to a retirement plan. This was formerly referred to as GSRA or a Group Supplemental Retirement Annuity. Because there are multiple products offered for employees to use for savings, this has been renamed the Voluntary Retirement Savings Program. The IRS establishes the maximum that can be contributed to this 403(b) plan. Refer to the Benefits web site at http://www.uiowa.edu/hr/benefits/retire/saving.html under Saving Extra for Retirement for instructions to enroll.
Any employee who receives a paycheck with Federal, State, and FICA tax deductions can contribute to the VRSP.
The minimum contribution is $16.00 per month and the maximum yearly contribution varies and can be as high as $26,000. (Not everyone can contribute the maximum.) The amount a person can contribute has to be calculated using IRS regulations. A worksheet is available at http://www.uiowa.edu/hr/benefits/forms/sracalc13.pdf.
No. Contributions to the VRSP can only be made by the employee.
The contribution amount to the VRSP can be changed from month-to-month and started or stopped at any time. A new "Salary Reduction Agreement" form must be signed each time the contribution amount is changed.
To cancel the VRSP contribution, send a letter (preferably on 8 ½ x 11 paper) or e-mail your name, Employee ID or social security number, a sentence saying you want to cancel your VRSP contribution; sign and date the letter, and send it to the Benefits Office. You can also do this via e-mail to: email@example.com
Yes. There are other companies that provide VRSP products to University employees. A current list of these companies is available on our web site.
When you terminate employment with the University, you are eligible to withdraw funds from your VRSP account/s.
Active employees over the age of 59 ½ may withdraw funds from their VRSP account/s.
Yes. Loans can only be from TIAA-CREF, not other companies. The employee needs to contact TIAA-CREF to find out the amount they can borrow and the terms of re-payment. If your VRSP account is with a company other than TIAA-CREF, contact your agent to transfer your funds to TIAA-CREF for this option.
No. The VRSP account is a separate account and you can allocate your contributions as you wish. Unlike the "basic" plan, funds put into the VRSP TIAA Traditional account can be moved to the CREF accounts at any time. (The "basic" retirement plan choice of the TIAA Traditional account funds can only be transferred to CREF over a 9 year period.)
No. The TIAA Traditional fund in the VSRP earns less than the TIAA Traditional fund in the "basic" account. The CREF funds earn the same rates of return. To check current rates go to http://www.tiaa-cref.org.
As a whole, Americans generally do not save enough for retirement, even with employer pension plans and Social Security. Private savings, such as those in the VRSP, can be an important part of preparing for a financially secure retirement.
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You should prepare for your retirement by gathering information regarding health and dental insurance, TIAA-CREF or IPERS, vacation and/or sick leave payout, and life insurance. After reviewing the Retirement Preparation Checklist at: http://www.uiowa.edu/hr/benefits/retire/retire_checklist.pdf. contact one of the Benefits Specialists at the Benefits Office, 335-2676, if you have further questions.
Please refer to the following web site: http://www.uiowa.edu/hr/benefits/retire/retirement.html.
Merit Retirees: You, your spouse/ domestic partner, and your eligible dependents can continue on a State health plan if you and your dependents are on the plan at the time of retirement. You can also continue dental coverage for you and your dependents if you and your dependents were on the State Dental plan at the time of your retirement. If you discontinue either the health or dental plan, you cannot enroll later. Merit staff will be billed directly by Wellmark Blue Cross Blue Shield and Delta Dental. For health plan information and rates, please refer to http://www.uiowa.edu/hr/benefits/health/merit/index.html.
Professional & Scientific, Faculty, and Merit Supervisory Exempt Retirees: You, your spouse/ domestic partner, and your eligible dependents can continue on one of the University health and/or dental plans at the time of your retirement. At this time you may also change plans and add eligible dependents. If you retire at age 62 or older and you have been employed with the University for the last 10 years, you may be eligible to receive a contribution to your health insurance. Professional & Scientific, Faculty, and Merit Supervisory Exempt retirees can elect to be billed directly by The University of Iowa or complete a form to have it withdrawn from a bank account. If health and/or dental are not continued after retirement, the retiree cannot later enroll in these plans. (Exception: If coverage is continued due to other employment or a spouse/ domestic partner’s employment, the retiree and spouse/domestic partner may enroll later with proof that the employment related coverage ended). For health plan information and rates please refer to: http://www.uiowa.edu/hr/benefits/health/retiree/index.html.
You will receive a paid-up life insurance benefit between $2000 and $4000 if you have been continuously insured with the University for the last 10 years and you retire at age 62 or older. Additional life insurance can be obtained by contacting an insurance broker. If you do not qualify for the paid up life insurance, you can convert your group life insurance to an individual life insurance policy with the Principal Financial Group. Conversion privilege is available within 31 days after termination of employment, and is only available if you are not eligible for the paid-up life insurance. The cost is based on your age at retirement. It is guaranteed coverage, so no physical is required.
You will be paid for all unused vacation plus up to $2,000 for unused accumulated sick leave. You should meet with a Benefits Specialist to complete the necessary paperwork and time records should be submitted as soon as possible after your last day of work. Vacation and sick leave pay will be deposited in your direct deposit account on the first of the month after your last paycheck. If you do not have direct deposit, a check will be mailed to your home. Please refer to http://www.uiowa.edu/hr/benefits/vacsick.html for additional information.
First, check out the University Benefits Office information on this topic at: Medicare, Social Security, and how they interact with The University of Iowa Health Insurance plans.
Then, contact the local Social Security Office at (319) 338-9461 to find out about your benefits. You should apply for benefits approximately three months prior to the date on which you want them to begin. You can also receive a projection of your benefits and apply for benefits on the Social Security web site at: www.ssa.gov.
If you have purchased season athletic tickets for at least five years, you can continue to purchase tickets at the staff rate after retirement.
Retirees can keep their ID card and continue to use the associated privileges. For security purposes, hospital retirees are required to turn in their ID cards and they can obtain a University ID card.
Retirees that have active ID cards can use them at the University Library, Recreation Services, and may be eligible for The University of Iowa Employee Discount Program (UIEDP) depending on the vendor. http://www.uiowa.edu/~cqi/uiedp.html.
For emeritus status information, contact your HR Representative.
Retirees who are continuing on a University insurance plan will be mailed Open Enrollment information from the Benefits Office each November. This information will include any changes to the health plans and the new rates for the next calendar year.
You can stop your health and/or dental coverage by submitting a written request to the Benefits Office.
If health and/or dental are not continued after retirement, the retiree cannot later enroll in these plans. (Exception: If coverage is continued due to other employment or a spouse/domestic partner’s employment, the retiree and spouse/domestic partner may enroll later with proof that the employment related coverage ended). For health plan information and rates please refer to: http://www.uiowa.edu/hr/benefits/retire/retirees.html.
Merit staff will be billed directly by Blue Cross Blue Shield and Delta Dental. Faculty, Professional & Scientific, and Merit Supervisory Exempt staff can elect to be billed directly by The University of Iowa or complete an Automated Clearing House (ACH) request form to have the premiums deducted from a bank account. Automatic deductions will occur on the first working day of the month.
Professional & Scientific, Faculty, and Merit Supervisory Exempt retirees continuing on a University health plan will receive a letter from the Benefits Office prior to their 65th birthday giving them instructions on how to continue on a University plan as a supplement to Medicare.
Merit retirees should contact their insurance company.
First, check out the University Benefits Office information on this topic at: Medicare, Social Security, and how they interact with The University of Iowa Health Insurance plans.
For detailed information, please refer to the Medicare web site at www.medicare.gov or contact the local Social Security Office at (866) 964-2039.
Professional &Scientific, Faculty, and Merit Supervisory Exempt active employees, retirees continuing on a University plan, and spouses will receive a Certificate of Creditable Coverage for Medicare Part D from the Benefits Office when they turn age 65. As required by law, these letters will also be mailed every October.
Active Merit employees and spouses will be mailed a Certificate of Creditable Coverage for Medicare Part D from the Benefits Office when they turn age 65. As required by law, these letters will also be mailed every October.
Merit retirees should contact their insurance company regarding the Certificate of Creditable Coverage for Medicare Part D.
- Address changes: Must be in writing and mailed or emailed to the Benefits Office.
- Life Insurance beneficiary change: Beneficiary changes must be done in writing. Contact the Benefits Office to request the Life Insurance beneficiary form.
- TIAA-CREF beneficiary change: Contact the TIAA-CREF customer service number at (800) 842-2776.
- Privacy change: Privacy forms can be printed from the Benefits form web site and submitted to the Benefits Office. The direct link to the form can be found at http://www.uiowa.edu/hr/benefits/privacy.html.
Contact the Benefits Office at (319) 335-2680. Staff will provide beneficiaries the necessary information and forms relating to life, health, and dental insurance. We will also notify TIAA-CREF to send information to beneficiaries.