1. Understanding Your Ball State University Retirement Plans New Faculty Orientation 2014

2. 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

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

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

5. 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.

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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

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

13. 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

14. 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 – years of credited service
Early retirement
Eligible for reduced pension at age years of credited service

15. 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 (

16. 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

17. 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

18. 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)

19. 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

20. 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

21. 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

22. Ball State University Retirement Plans
PEB
Administration Building
Room G29
Susan Kobrin – Retirement Plan Administrator
Stacey French – Retirement Plan Specialist