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

Ball State University Retirement Plans AGENDA (cont’d) Teachers’ Retirement Fund Description Contributions Investment Options Enrollment Process

Ball State University Retirement Plans AGENDA (cont’d) Voluntary Retirement Savings Plan Descriptions Contributions Investment Options Enrollment Process Important Reminders

Ball State University Retirement Plans 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.

Ball State University Retirement Plans APP DESCRIPTION Defined contribution plan 100% immediate vesting University funded University contributions plus/minus earnings are available upon termination of employment

Ball State University Retirement Plans APP CONTRIBUTIONS 5% of gross wages for first 3 years 10.5% of gross wages thereafter Contributions are made on a monthly basis

Ball State University Retirement Plans 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

Ball State University Retirement Plans APP ENROLLMENT PROCESS Quick guide to information about APP: Letter to new employee APP at a Glance TRF and APP Comparison APP Enrollment Form

Ball State University Retirement Plans 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

Ball State University Retirement Plans 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

Ball State University Retirement Plans TEACHERS’ RETIREMENT FUND DESCRIPTION Two part plan design Annuity savings account (ASA) Pension benefit

Ball State University Retirement Plans 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

Ball State University Retirement Plans 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

Ball State University Retirement Plans 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)

Ball State University Retirement Plans 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

Ball State University Retirement Plans 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

Ball State University Retirement Plans 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)

Ball State University Retirement Plans 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) No restrictions on fund selection

Ball State University Retirement Plans 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

Ball State University Retirement Plans 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

Ball State University Retirement Plans PEB Administration Building Room G29 Susan Kobrin – Retirement Plan Administrator skkobrin@bsu.edu/285-8404 Stacey French – Retirement Plan Specialist slfrench@bsu.edu/285-8470