Understanding Your Ball State University
Retirement Plans
New Faculty Orientation
2014
Ball State University
Education Redefined
Ball State University Retirement Plans
AGENDA


2
Pension Plan Options

Alternate Pension Plan (“APP”)

Teacher’s Retirement Fund (“TRF”)
Alternate Pension Plan

Description

Contributions

Investment Options

Enrollment Process
Ball State University
Education Redefined
Ball State University Retirement Plans
AGENDA (cont’d)

Teachers’ Retirement Fund

Description

Contributions

Investment Options

Enrollment Process
Ball State University
Education Redefined
Ball State University Retirement Plans
AGENDA (cont’d)


4
Voluntary Retirement Savings Plan

Descriptions

Contributions

Investment Options

Enrollment Process
Important Reminders
Ball State University
Education Redefined
Ball State University Retirement Plans
PENSION PLAN OPTIONS
(1) Alternate Pension Plan (APP)
(2) Teachers’ Retirement Fund (TRF)


5
These plans are fully paid by the University.
The enrollment deadline is 60 days after your date of
hire.
Ball State University
Education Redefined
Ball State University Retirement Plans
APP DESCRIPTION

Defined contribution plan

100% immediate vesting

University funded

6
University contributions plus/minus earnings are available
upon termination of employment
Ball State University
Education Redefined
Ball State University Retirement Plans
APP CONTRIBUTIONS
7

5% of gross wages for first 3 years

10.5% of gross wages thereafter

Contributions are made on a monthly basis
Ball State University
Education Redefined
Ball State University Retirement Plans
APP INVESTMENT OPTIONS

8
Vendors

ING

Fidelity Investments

Lincoln Financial Corp

TIAA-CREF

Approved investment fund options by company

Target date asset funds available

Flexibility to change investment funds
Ball State University
Education Redefined
Ball State University Retirement Plans
APP ENROLLMENT PROCESS

9
Quick guide to information about APP:

Letter to new employee

APP at a Glance

TRF and APP Comparison

APP Enrollment Form
Ball State University
Education Redefined
Ball State University Retirement Plans
APP ENROLLMENT PROCESS




10
Designate your chosen investment company (multiple
companies can be selected)
Separate application required to establish BSU account with
investment company (University contributions cannot be made
if account is not established); available from vendors/PEB
website
Designate investment funds
Complete Ball State University Alternate Pension Plan &
Designation of Investment Company Election Form and turn
in to PEB; available on PEB website
Ball State University
Education Redefined
Ball State University Retirement Plans
TEACHERS’ RETIREMENT FUND DESCRIPTION
11

Defined benefit plan

Administered by Indiana Public Retirement System (INPRS)

Annuity and pension benefit

University funded

Contribution rate determined by State
Ball State University
Education Redefined
Ball State University Retirement Plans
TEACHERS’ RETIREMENT FUND DESCRIPTION

12
Two part plan design

Annuity savings account (ASA)

Pension benefit
Ball State University
Education Redefined
Ball State University Retirement Plans
TEACHERS’ RETIREMENT FUND CONTRIBUTIONS

13
Annuity Savings Account
 3% contribution made by University
 Optional voluntary contributions by member
 Pre-tax election irrevocable for as long as member is BSU
employee

2 year window after 5 years of service credit
 Special rules for post-tax election
 100% immediate vesting
 Contributions plus/minus investment earnings can be withdrawn at
termination
Ball State University
Education Redefined
Ball State University Retirement Plans
TEACHERS’ RETIREMENT FUND CONTRIBUTIONS

Pension Benefit



University contributes State mandated contribution percentage
Benefit = average of highest 5 years of annual compensation x total years of service
x 1.1%
Vesting





TRF member’s age is 55 – 59 + years of credited service = 85 or more

TRF member’s age is 60 – 64 + 15 years of credited service
Early retirement

14
10 years of TRF credited service entitles member to monthly benefit at 65
Credited service < 10 years yields no pension benefit, only annuity
Rule of 85
Eligible for reduced pension at age 50 - 59 + 15 years of credited service
Ball State University
Education Redefined
Ball State University Retirement Plans
TRF INVESTMENT OPTIONS


15
Investment election available for Annuity Savings Account
and optional voluntary contributions only
Refer to Indiana Public Retirement System website
(www.inprs.in.gov)
Ball State University
Education Redefined
Ball State University Retirement Plans
TRF ENROLLMENT PROCESS
Retirement Plan Enrollment Kit
16

TRF at a Glance

TRF and APP Comparison

TRF application is available on the PEB website

Complete form and return it to PEB as soon as possible
Ball State University
Education Redefined
Ball State University Retirement Plans
VOLUNTARY RETIREMENT SAVINGS PLANS
DESCRIPTIONS

403(b) Tax Deferred Annuity (TDA) with ROTH after-tax option

457(b) Deferred Compensation Plan

TRF Pre-tax after 5 years of credited service

TRF After-tax
17
Ball State University
Education Redefined
Ball State University Retirement Plans
VOLUNTARY SAVINGS PLANS CONTRIBUTIONS

Employee only contribution

Designate a percentage of gross wages

Contribution subject to IRS maximum ($17,500 for 2014)

18
Catch-up contribution available for participants age 50 and over
($5,500 for 2014)
Ball State University
Education Redefined
Ball State University Retirement Plans
VOLUNTARY RETIREMENT SAVINGS PLANS
INVESTMENT OPTIONS



19
Six investment companies for 403(b) TDA
 AUL/One America
 Equitable
 Fidelity
 ING
 Lincoln National Corp
 TIAA-CREF
Two investment companies for 457(b)
 Fidelity
 TIAA-CREF
No restrictions on fund selection
Ball State University
Education Redefined
Ball State University Retirement Plans
VOLUNTARY RETIRMENT PLANS ENROLLMENT
PROCESS


20
Separate election required
 403(b) and 457(b)
 Designate your chosen investment company
 Separate application required to establish BSU account with investment
company (contributions cannot be made if account is not established)
 Designate investment funds
 Complete 403(b) and 457(b) Plan Salary Reduction Agreement and turn in to
PEB
 TRF – contact Indiana Public Retirement System
No deadline to join except TRF pre-tax
Ball State University
Education Redefined
Ball State University Retirement Plans
IMPORTANT REMINDERS



21
Deadline for APP or TRF Election is 60 days after date of
hire
If no election form is submitted, pension election will
default to TRF and cannot be changed
For APP, 403(b) and 457(b), establish account with
investment company, then complete appropriate form
Ball State University
Education Redefined
Ball State University Retirement Plans
PEB
Administration Building
Room G29
Susan Kobrin – Retirement Plan Administrator
skkobrin@bsu.edu/285-8404
Stacey French – Retirement Plan Specialist
slfrench@bsu.edu/285-8470
22
Ball State University
Education Redefined