Vesting

Understanding the three-year vesting requirement

When you are hired and enrolled in the IU Retirement Plan or IU Retirement & Savings Plan, you are subject to a three-year cliff vesting requirement. 

This means that retirement contributions made by Indiana University become 100 percent yours after you have been employed by IU for three years. Employment at IU affiliates does not count toward vesting.

If your employment ends prior to that time, those contributions are forfeited.

There are exceptions. You will be fully vested if one of the following occurs before the three-year cliff:

  • Death
  • Disability (as defined by social security)
  • You turn 65

Information about specific circumstances

If you are a PERF participant, you must have at least 10 years of PERF creditable service (or at least 5 years of PERF creditable service before becoming eligible for the IU Retirement Plan) to have a vested right to your pension benefit.

All contributions to the IU supplemental retirement plans are made by you, therefore you’re always 100% vested in those accounts.

All years of IU employment count for vesting regardless of leave or pay status.

We count academic years as a full year for 10-pay employees. If you are primarily a 10-pay and work three full academic years, you are 100% vested.