Choosing Your Retirement Plan
At the University of Iowa, participating in a mandatory retirement plan is a key part of your benefits as a regular faculty or staff member. These plans are designed to help you build long-term financial security through contributions from both you and the university.
Eligible employees must choose between two retirement plan options:
- Iowa Public Employees’ Retirement System (IPERS)
- Teachers Insurance and Annuity Association (TIAA)
You must make your selection within 60 days of your hire or eligibility date. If no choice is made, you will be automatically enrolled in IPERS.
This page provides an overview of your options, eligibility requirements, and key details to help you understand your retirement benefits and make the choice that’s right for you.
Eligibility for Mandatory Retirement Plans
- Newly hired or newly eligible employees with a retirement-eligible appointment who are not currently enrolled in a mandatory university retirement plan may choose between IPERS and TIAA.
- Faculty and staff with appointments expected to last six months or more are required to participate in a mandatory retirement plan.
- The following groups are not eligible for mandatory retirement plans:
- Students
- House staff
- Fellows
- Adjunct faculty
Retirement Plan Details
IPERS
- Employee Contribution: 6.29%
- Employer Contribution: 9.44%
- Vesting: 7 years of service or age 65 while employed
- Retirement Benefit: Based on salary, years of service, and a set formula
IPERS Plan Finer Details
IPERS 401(a) Plan Details and Features
IPERS is a pension plan that provides guaranteed retirement benefits for eligible employees. It's a defined benefit plan, which means your monthly benefit is based on a formula that considers your age, years of service, and covered wages.
- Your benefit lasts for your lifetime, no matter how long you live.
- Your benefit amount does not change with stock market performance.
- IPERS takes on all investment risk, so you can retire with confidence.
This plan offers financial security and peace of mind for your future.
| Topic | Information | |
|---|---|---|
| Contact Information |
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| Plan Type |
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| Eligibility |
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| Enrollment |
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| Calendar Year Wage Ceiling |
The IRS sets an annual maximum wage ceiling. Contributions stop once this limit is reached. IPERS monitors wages and returns any excess contributions. | |
| Vesting |
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| Employee & Employer Contributions (Effective July 1, 2025) |
| Protection Occupations:
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TIAA
- Employee Contribution: 3.33% on first $4,800 salary earned, then 5%
- Employer Contribution: 6.66% on first $4,800 salary earned, then 10%
- Vesting: Immediate
- Retirement Benefit: Based on contributions and investment performance
TIAA finer details
TIAA 403(b) Plan Details and Features
The Teachers Insurance and Annuity Association (TIAA) is a 403(b) Defined Contribution Plan. This tax-deferred plan allows you to contribute a fixed percentage of your paycheck to an account designed to fund your retirement. The University of Iowa contributes double your percentage each month.
Unlike IPERS, this plan does not guarantee a set retirement income. Your retirement income depends on your investment choices and market performance. You choose from TIAA investment options to match your goals, whether you prefer higher-risk portfolios with potential for greater returns or more conservative options.
| Topic | Information | |
|---|---|---|
| Contact Information |
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| Plan Type |
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| Eligibility |
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| Enrollment |
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| Annual Maximum Eligible Salary |
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| Vesting |
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| Employee & Employer Contributions |
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Which Retirement Plan is Right for You?
Choosing between IPERS and TIAA depends on your career goals and financial preferences.
IPERS may be a better option if you:
- Plan to remain in Iowa public employment for many years
- Prefer a predictable, formula-based pension benefit
TIAA may be a better option if you:
- Value portability and flexibility in case you change employers
- Want control over your investment choices and potential for growth
Action Required: Enroll in Your Mandatory Retirement Plan
Now that you’ve explored the differences between IPERS and TIAA, it’s time to make your choice! Enrolling in your mandatory retirement plan is a quick and easy process, and you have 60 days from your hire or newly eligibility date to complete it. If you don’t make a selection, you’ll automatically be enrolled in IPERS. Follow the steps below to get started and secure your retirement future today.
Retirement Plan Details
How to Enroll in Your Mandatory Retirement Plan
How to Make Your Retirement Election
Enrolling in your mandatory retirement plan is a two-step process.
- Make your initial election in Employee Self-Service within the first 60 days of your hire/eligibility date.
- Your second step is to visit your vendor's website and set up your online account.
After researching and reading all the information, you should be ready to select your retirement plan.
1st Step: Make election in Employee Self-Service
- Log in with your HawkID and password
- Select the "Benefits & Wellness" link on the left-hand menu
- Select the link labeled "Retirement" and then "Retirement Enrollment."
- On the next screen, it will show that you are currently enrolled in IPERS.
- If you want to change that selection, choose the " TIAA " box and submit your choice to the Benefits Office.
- If you wish to remain in IPERS, you will not have to do anything further.
Members of professional groups where part-time income from the University is not the majority of their income can use IPERS Exemption Claim Form (pdf) to request an exemption from IPERS.
2nd Step: Creating your account with IPERS or TIAA
Now that you have made your final selection and submitted it to University Benefits (TIAA only), you will want to set up your online account with the vendor you have chosen for your mandatory retirement plan.
IPERS
- Review your welcome packet from IPERS: Within two months of your first paycheck, you will receive a welcome packet from IPERS to your home address. Your welcome letter will contain your member ID number and your "My Account" username. If you have never received or may have lost your welcome letter, please call IPERS directly at 800-622-3849.
- Access your IPERS "My Account": When you receive your username (found within your welcome letter) and temporary password (mailed to you after your welcome packet), you will log in to the IPERS website and update your email, home address, and identify and add your beneficiaries.
(Beneficiary information does not translate from Employee Self-Service to your retirement account at IPERS)
TIAA
- Visit the TIAA microsite for the University of Iowa employees
*If you are asked for an access code, enter IAFP67. - Select the button labeled "Ready to Enroll."
- For your mandatory plan, select the first option, "Defined Contribution Retirement Plan," and then "Begin Enrollment."
- If you do not already have a TIAA account, select the yellow "Register Now" button or type in your User ID and Password.
- Once you have completed your registration, please review your account information, add/update contact information, and ADD a BENEFICIARY.
(Beneficiary information does not translate from Employee Self-Service to your retirement accounts in TIAA.)
Frequently Asked Questions
New Hires and Previously Employed Returning to the University
New Hires
IPERS is the default mandatory retirement program at the University of Iowa; employees are automatically enrolled in IPERS unless they elect TIAA within 60 days of their hire/eligibility date.
- Retirement contributions will begin on the first paycheck. If your retirement election is not submitted within Employee Self-Service before the first paycheck, IPERS contributions will be automatically deducted. If TIAA is later elected before the end of the 60-day election period, the IPERS contributions will be refunded to the employee/employer. The TIAA contributions will begin on the following paycheck.
Employees returning AFTER 31 days or more break.
Employees who've worked for the university previously and have returned within a new retirement-eligible appointment, with a 31-day or more break in service, are considered new hires and will be required to enroll in a mandatory retirement plan again.
Employees returning BEFORE 31 days or more break.
Suppose the employee does not have a 31-day or more service break and returns to the university in a new retirement-eligible appointment. In that case, the employee will not receive another election opportunity as they are NOT considered a new hire. The university and employee mandatory retirement contributions will continue in the previously elected retirement plan.
My Funds when Terminating from the University
Your Options When You Terminate
IPERS
No matter when you leave IPERS-covered employment, you are always entitled to 100 percent of your own contributions and interest earnings. If you are vested, you can receive a portion of your employer’s investment based on your years of service.
1. Leave your funds with IPERS.
Leave your money with IPERS until you receive retirement benefits, return to IPERS-covered employment, or choose another alternative.
- Your money will continue to earn interest.
- You will not have to do anything with your account until you are ready to take action.
2. Roll your money over to another retirement plan.
To roll over funds to another plan, you must take a refund, ending your IPERS membership. You must withdraw 100% of your funds.
Two ways to complete a rollover
Fill out the Application for IPERS Refund (available in your IPERS My Account).
- Direct Rollover
If you make a direct rollover, you can avoid mandatory income tax withholding, defer income tax liability, and, if applicable, avoid a 10 percent early-distribution tax.- Confirm that your new plan accepts funds from the 401(a) IPERS account and to whom the rollover check should be made payable to. IPERS will then send your rollover check directly to that institution on your behalf.
- Take your refund from IPERS and send money yourself to another retirement plan.
3. Take a refund.
Please complete the Application for IPERS Refund (available in your IPERS My Account) only after leaving all employment with an IPERS-covered employer. You must withdraw 100% of your available money.
- Please note that if your new job is still an IPERS-covered employer, your IPERS participation will continue automatically, and you cannot take your money out of IPERS at that time.
The refund value of your IPERS account includes your contributions, any employer contributions you are entitled to, and interest earnings. You must be vested to receive any of your employer's contributions.
IPERS will issue your rollover payment or cash refund generally within two to three weeks of receiving your completed application.
Important things to consider before taking a refund:
- If you later return to IPERS-covered employment, you will be enrolled as a new member without credit for any service before the refund.
- Once you file for a refund, you cannot work in IPERS-covered employment for 30 days after leaving employment or your refund will be revoked. If you return before 30 days have passed, you must pay back your refund within 30 days of notification from IPERS.
- Your IPERS refund is taxable income if paid directly to you (instead of being rolled over).
- If you are an Iowa resident, IPERS will automatically withhold 20% of the taxable portion for federal income taxes plus an additional 5% for state income taxes.
- If you receive your refund before age 59 ½, you may be responsible for an additional 10% early-withdrawal tax penalty. It's recommended to visit a tax advisor before applying for a refund.
- IPERS will send you an IRS Form 1099-R in January, the year following your rollover or refund.
TIAA
To read about the potential advantages and disadvantages of any of the four options below, please visit the TIAA website for more information.
Your Options:
- Leave your money in your former employer's retirement plan and continue to have the opportunity for tax-deferred growth.
- Move your money directly into an individual Retirement Account (IRA).
- Move your money directly into your new employer's retirement plan.
- Withdraw your money in cash.
- 20% federal income tax withheld; state taxes may apply as well.
- Distributions will be taxed as ordinary income when you file your taxes.
- A potential 10% early withdrawal penalty may apply if you are under age 59½.
Request for a refund should not be made until after termination of employment.
Termination of employment means you no longer receive any form of salary or wage compensation from the University of Iowa eligible for TIAA contributions. Please be aware that TIAA will only grant a refund request approved by the University of Iowa.
When applying for a refund or to move your funds from TIAA, the former employee will need to:
- Log in to their online TIAA account
- In the top horizontal menu, select the "Actions" tab
- Under the "Retirement plans" section,
- To request a refund/withdrawal of funds, select the link labeled "View available loans & withdrawals" and complete the following steps.
- If you want to move your money from TIAA, select the link labeled "Move money from TIAA" and complete the following steps.
Upon receipt of your request for a refund, TIAA will send you a computer-generated letter. The University sends a monthly file of terminations on the first business Monday of each month. It will then take three to four weeks until your refund is completed.
Requesting an Appointment with TIAA During Work Hours
The TIAA office in Coralville offers services available to you about retirement savings and personal financial planning. Therefore, you may request release time from work to schedule a visit to the TIAA office in Coralville during regular business hours. You will be limited to one appointment per calendar year without using vacation for a maximum of two hours.
You can schedule an appointment by phone or online.
You must work with your department in scheduling the appointment to balance the needs of the work area. If you prefer not to notify your supervisor of your intention to visit the TIAA office or if you request additional appointments, you must use your vacation time. You are not eligible for additional compensation if you consult with the TIAA representatives outside of your regular work hours.
The financial services offered by TIAA are an essential benefit to you, and therefore, the University feels it is vital to facilitate reasonable access to these services.
Retirement Plan Limits
| Retirement plan | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| Annual Compensation Limit - hired before Jan. 1, 1996 - This limit only applies to the mandatory & voluntary 403(b) accounts. | $466,666.67 | $460,000 | $440,000 | $380,000 | $386,666.67 |
| Annual Compensation Limit This limit applies to 401(a) and 403(b) mandatory and voluntary plans of employees hired after Jan. 1, 1996. | $350,000 | $345,000 | $330,000 | $305,000 | $290,000 |
| Elective Deferrals - 403(b) and 457(b) | $23,500 | $23,000 | $22,500 | $20,500 | $19,500 |
| Catch-up Contributions (Age 50+) | $7,500 No change in 2025 | $7,500 No change in 2024 | $7,500 | $6,500 | $6,500 |
| Catch-up Contributions (Age 60 - 63) | $11,250 | N/A | N/A | N/A | N/A |
| Defined Contribution Limits | $70,000 | $69,000 | $66,000 | $61,000 | $58,000 |
Want to save more?
The University has two voluntary retirement programs you may enroll in through Employee Self-Service to save even more for retirement.
ABOUT OUR SITE:
The information on our website describes only the highlights of the plans and does not constitute official plan documents. Additional terms and conditions may apply. If there are any discrepancies between the information contained herein and the official plan documents, the plan documents will govern.