Retirement Plan Comparison

As of 01/01/2017

Plan Length of Employment Portion of Salary Employee Contribution University Contribution
Plan Contribution Rates Comparison
TIAA First five years First $4,800 of salary 3.33% 6.66%
Salary above $4,800 5% 10%
After five years All Salary 5% 10%
IPERS Any All Salary 5.95% 8.93%
IPERS Certified Law Enforcement Occupations Any All Salary 6.56% 9.84%
Plan Attribute TIAA IPERS
Plan Attribute Comparison
Plan Type 403(b) Defined Contribution Plan.  Individually-owned retirement accounts issued by TIAA.   Federal and State income taxes on contributions are deferred until the benefits are received.  Retirement income is contingent upon your individual investment returns. 401(a) Defined Benefit Plan.  Federal and State income taxes on contributions are deferred until the benefits are received.  Retirement income is contingent on a formula based on your years of service and salary earned.
Maximum Eligible Salary $360,000 (Staff hired before January 1, 1996)
$270,000 (Staff hired after January 1, 1996)
$270,000
Vesting Both the Employee and University contributions are fully and immediately vested.  This means that you own all contributions to your account, even if you leave the University before retirement. Vesting begins after 7 years (28 quarters) or at age 65 and contributing to IPERS.
Terminating before retirement (Under age 55) You own all contributions to your account.  You can leave your money with TIAA as long as you like.  You can receive withdrawals from your account or roll it into an IRA.  If you withdraw funds before age 59-1/2, they may be subject to an additional 10% early withdrawal penalty. You can leave your money with IPERS, receive a refund of your contribution, or roll it into an Individual Retirement Account (IRA).  If you are vested, you will receive a portion of the University contribution at a prorated amount based on years of service.  If you withdraw funds before age 59-1/2, they may be subject to an additional 10% early withdrawal penalty.
Retirement (terminating over age 55) If you retire after reaching 55, the 10% tax penalty will not apply.  There are multiple withdrawal options including annuities.  For more details see the TIAA and/or University Benefits Office websites. You will receive all your contributions, plus a portion of the University contribution based on a formula that looks at years of service, age, and salary.  There are multiple withdrawal options.  For more details see the IPERS and/or University Benefits Office websites.