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 $66,000 for 2023 / $69,000 for 2024.

The IRS also limits the maximum annual compensation on which qualified retirement benefits can be calculated. The maximum annual compensation is $330,000 in 2023 / $345,000 for 2024.

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
Federal law requires participants to begin receiving at least a partial distribution of tax-deferred retirement account funds by April 1 of the calendar year following the year he/she reaches age 72, or upon retirement/separation, whichever is later. Failure to withdraw the RMD annually by the applicable deadline can result in substantial tax penalties.