148.4 Retirement Plan

148.4 Retirement Plan

A. Background

On April 1, 1941, the Board of Trustees of Furman University established a retirement plan. The retirement plan covers all eligible faculty and staff.

B. Policy

Furman University contributes to the purchase of individual annuities or accounts issued by Teachers Insurance and Annuity Association (TIAA), College Retirement Equities Fund (CREF), the Variable Annuity Life Insurance Company (VALIC), and/or Fidelity Investments.

C. Guidelines

1. All faculty and staff who are considered full-time participate in the plan after two (2) years of service to the university and attainment of age 21. Newly appointed faculty or staff who own vested, fully funded, non-cashable individual retirement annuity contracts under the terms of an institutional retirement plan of a previous employer, may begin participation on the first day of the month following employment at the university.

2. For newly appointed faculty and staff, credit toward the service requirement may be given for work at another non-profit institution provided the service was professional and in the same or related field as the position accepted at Furman. However, a waiting period of at least one (1) year is required except in those cases in which the new employee owns a fully vested, fully funded non-cashable individual retirement annuity contract under the terms of an institutional retirement plan of a previous employer.

3. University contributions to the retirement plan are made on a monthly basis according to the following schedule, up to the maximum allowed by the plan. 7.5 percent of salary starting with the third year of service and 12.5 percent of salary starting with the eighth year of service.

4. University contributions will continue until the effective date of the individual's retirement from the university. The employee may continue to contribute to the retirement plan on his or her own to take advantage of the tax shelter provision.

5. The normal retirement age is 65 for staff and the last day of August following the 65th birthday for faculty.

6. There is no mandatory retirement age for staff. As of December 31, 1993, there is no mandatory retirement age for tenured faculty.

7. The employee determines the distribution of the funds and owns all annuities that have received deposits and accounts.

8. The employee may elect to transfer funds from one retirement institution to other retirement plans approved by the university, including TIAA/CREF, Fidelity Investments, and VALIC.

9. During a leave of absence or sabbatical leave, the university continues to purchase the annuities at the specified contribution rate calculated on the basis of the salary being paid by the university.

10. The Board of Trustees has approved Furman's participation in the TIAA/CREF, Fidelity Investments, and VALIC employee voluntary tax-deferred plan, a plan by which eligible faculty and staff members may set aside tax-deferred funds over and above the amount being accumulated under Furman's retirement contributions. Additional information may be obtained from the Personnel Department.

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