Human Resources

To be eligible to participate in the plan, an employee must have been hired on or after July 1, 2013 and be in a:

• Non-Exempt staff position (excluding PAO & PAU) at 50% or more full-time equivalent (FTE); or

• Part-Time with Retirement position.

For each eligible employee Indiana University contributes an amount equal to 10% of actual base wages for each regular pay period. Base wage does not include any supplemental pay received by the eligible participant during the pay period.

For employees hired prior to July 1, 2013, see PERF.

Eligible employees are automatically enrolled in the appropriate plan, but must setup their plan account, choose investments, and designate beneficiaries by following these step-by-step enrollment instructions. For assistance with any of these processes, contact Fidelity at 877-343-0860.

Indiana University contributes an amount equal to 10% of base wages for each regular pay period. Base wage does not include any supplemental pay received by the eligible participant during the pay period.

The calendar-year limit on total contributions is the lesser of 100 percent of your compensation or $69,000 for 2024 / $70,000 for 2025.

The IRS also limits the maximum annual compensation on which qualified retirement benefits can be calculated. The maximum annual compensation is $345,000 for 2024 / $350,000 for 2025.

Indiana University makes all contributions to the plan. Employees are not permitted to contribute to the plan.

Participants in the plan are subject to a three-year cliff-vesting requirement. This means that an employee is fully vested in the plan after three years of IU employment.

This is a “participant directed plan” meaning you are responsible for directing the investment of your plan account. If you do not select investments, your funds will be invested in the plan’s default investment option – and age-appropriate Vanguard Institutional Target Retirement Date Fund.

• Review the Investment Options available under the plans.
• Learn how to change your investments at any time.

Hardship distributions and loans are not allowed to be made to participants from this plan. For information on Required Minimum Distributions (RMDs) see ‘Options When You Leave IU’ below.

All plan contributions stop when your employment with IU ends. Upon termination of employment, you may:

• Leave accumulations in the plan account and continue to manage investments;
• Withdraw all or a portion of vested plan account accumulations (subject to income taxes and/or penalty taxes); or
• Roll over all or a portion of vested plan account accumulations to an eligible retirement plan (e.g., an IRA).

After terminating employment with the university, most transactions related to your plan account are handled directly with the applicable investment company. For more information, review the Benefits After Separation Guide.

Required Minimum Distributions (RMD) at Age72
When you turn age 72 (or 73 if your 72nd birthday is after December 31, 2022), the IRS requires that you begin taking distributions from certain retirement accounts, called a “required minimum distribution” or RMD. You can take this first withdrawal either in the year you turn 72 or wait until April 1 of the next year. If you're still working, you can defer RMDs until after you separate/retire from IU without penalties. For example:

• If you turn 72 in 2022, your first withdrawal must be taken by April 1, 2023. But you’ll also have to take a second withdrawal by December 31, 2023.
• If you turn 72 in 2023, your first withdrawal is due by April 1, 2025, since you turn 73 in 2024.

For questions about RMDs, contact Fidelity or the account vendor directly.