The IRS limits the maximum annual compensation on which qualified retirement benefits can be calculated. It also limits the total contributions that can be made to each plan. Find the limits for the current plan year.
If your job changes, causing you to move between employee classifications—from academic/exempt staff to non-exempt staff or part-time with retirement, or vice versa—you will remain vested, but will be automatically moved to the base retirement plan that matches your new position:
- For non-exempt staff and part-time with retirement employees: IU Retirement & Savings Plan
- For academic and exempt staff: IU Retirement Plan
Your balance will stay in the previous plan and fluctuate with the market based on your investments, but no new contributions will be made to that plan.
If you retire from IU and begin taking distributions from an IU retirement plan, you may be re-employed by IU as long as the IRS rules of a bona fide separation have been followed.
A bona fide separation consists of the following requirements:
- A 30-day break in employment
- No verbal or written arrangements for re-employment can be made prior to, or as a part of, retiring from IU
The only exception to this rule is if you are at least age 62 and meet the eligibility requirements for IU retiree status upon separation.
Employees who meet these requirements can return to employment without a break in service and also access their IU retirement funds. However, the department must process a termination eDoc due to retirement and rehire the individual into a different position, such as hourly, adjunct, etc.
To confirm IU retiree status and bona fide status eligibility, contact askHR@iu.edu.
