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 (for faculty: a full-time, continuing contract; for staff: continuing positions budgeted for 1000 work hours or more per year) participate in the plan after two (2) years of service to the university and attainment of age 21.

2. Newly appointed faculty or staff who have received employer contributions to a 403b plan under the terms of an institutional retirement plan of the most recent employer may begin participation on the first day of the month following employment at the university as defined in Furmans contracts with its retirement plan providers.

3. 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 before participation in the retirement program can begin, except in those cases outlined in guideline 2 above.

4. 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 or upon attainment of tenure, whichever is sooner.

5. University contributions will continue until the effective date of the individual's retirement from or termination from the university.

6. Information about options available to employees at their retirement or termination from the university may be obtained from the Personnel Department.

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

8. There is no mandatory retirement age for faculty or staff.

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

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

11. While a faculty member is on sabbatical leave, the University continues its normal retirement contribution based on full salary.

12. 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.

13. 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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