148.4 Retirement Plan
|Created by: Stephanie Ferguson on 02/05/1999|
|Category: 1 - Academic Affairs; 40 - Benefits|
|Originator: Director of Human Resources and Faculty Status Committee|
|Current File: 148.4|
|Adoption Date: 02/01/2017|
|Reviewed for Currency: 02/01/2017|
|Replaces File: 148.4|
|Date of Origin: 11/12/1979|
|In Archive? 0|
148.4 Retirement Plan
On April 1, 1941, the Board of Trustees of Furman University established a retirement plan: the Furman University Defined Contribution Plan. The retirement plan covers all eligible faculty and staff.
Furman University contributes to the purchase of group annuities or mutual funds held in custodial accounts. The sole record keeper (as of 2015) is TIAA. Although no longer receiving contributions, Fidelity Investments and VALIC still hold retirement funds for some active and retired faculty and staff.
1. All non-adjunct faculty and non-temporary or event staff who complete 1000 hours or more per year participate in the plan after two (2) years of service to the university and attainment of age 21.
2. For newly appointed faculty and staff, credit toward the service requirement may be given for work at an eligible predecessor employer. This is considered an educational organization, an organization that meets the requirements of the Internal Revenue Code Section 403(b)(1) (e.g., a 501(c)(3) not-for-profit organization or an educational organization), a teaching institution, an institution of higher education, or a non-profit (research) institution.
3. University contributions to the retirement plan are made every pay period according to the following schedule, up to the maximum allowed by the plan: 7.5 percent of salary after two years of service and 12.5 percent of salary after seven years of service or upon attainment of tenure, whichever is sooner.
4. University contributions will continue until the effective date of the individual's retirement from or termination from the university.
5. Information about options available to employees at their retirement or termination from the university may be obtained from the Human Resources Department. If an employee's balance upon termination is less than $5,000, then the employee's funds will be forced out of the plan and moved into an Individual Retirement Account (IRA) with TIAA.
6. There is no mandatory retirement age for faculty or staff.
7. The employee determines the distribution of the funds and owns all annuities and accounts that have received deposits.
8. While a faculty member is on sabbatical leave, the University continues its normal retirement contribution based on full salary.
9. Usually during a leave of absence without pay, the university pays no retirement contributions. However, a faculty member may arrange for payment of retirement contributions from some other source.