Creighton University

Information For :

To provide updates and communication on the retirement plan activities, a transition website has been developed.  Please access the site at: www.principal.com/creighton.

If you have questions or comments about the retirement plan, please forward your questions or comments to: 403RetirementPlan@creighton.edu

Retirement Plan Transition Presentation (PPT)

Retirement Town Hall Meeting Web Presentation

 

Retirement benefits are an important part of your total Creighton University compensation package.  As a University employee, you are offered an attractive 403(b) savings plan.  With careful planning, you can make your retirement years more comfortable and secure. 

Creighton University's Retirement Program is comprised of the 403(b) Supplemental Retirement Plan and the 403 (b) Basic Retirement Plan.  The following is a summary of each component:

The 403(b) Supplemental Retirement Plan:  All employees are eligible to participate in the 403(b) plan immediately.  This plan allows tax-deferred employee contributions, and does not qualify for the employer match.  You are eligible to contribute up to the IRS limitation for each calendar year.

The 403(b) Basic Retirement Plan:  Employees are entitled to participate in the plan once they satisfy the two-year service requirement.  However, new employees who participated in a 401(a) or 403(b), had at least two years if service with another post-secondary academic institution, (teaching hospital affiliated with an academic institution) will be deemed to have met the eligibility rules.  The early participation requires proof of eligility on letter head or from your prior employer through e-mail notification.  Under the early participation rules, The University may limit participation if the participation would cause the University to fail certain anti-discrimination requirements fo the tax laws.

You defer paying income tax on the contributions made by you and the University contribute to the plan until withdrawal.  In addition, investment earnings accumulate tax-free until withdrawal. 

403b facts

If you are classified by the University as a benefit-eligible full-time or part-time employee, have a normal work schedule of at least 1040 hours, and have an appointment of nine months or more duration, you may participate in the Creighton University Retirement Plan.

As an eligible employee, you can participate in the basic plan beginning on the first day of the month in which you completed two years of service with the University, and have completed the application process.  All eligible employees can participate in the supplemental plan beginning on the first day of the month in which you complete the application process.

Prior eligible service with the University will be applied toward the two-year waiting period.  These provisions apply only to the eligible waiting period for the retirement program.

Under the current schedule, the University matches your Base Compensation based on the amount of your pre-tax deferral up to certain limits: 

 

Employee Pre-Tax Deferral as % of Base Compensation	University Matching Contribution
5% 4% 3% 2% 1%	8% 6.4% 4.8% 3.2% 2.6%

If you elect to make no pre-tax deferrals, the University will contribute 2% of your Base Compensation on your behalf.  To initiate the start of the 2% contribution, you are required to complete the application process.

Base Salary equals your base pay from the University, excluding overtime, one-time payments, summer session income, stipends, commissions, bonuses; and special payments including teaching overload pay, seminars, summer research payments and similar items.

Vesting is the term for gaining full ownership in a benefit provided to you by a plan. You are immediately vested in all the benefits provided to you by the Retirement Plan.

Both your contributions, and the University's may be invested in any of the following investment vehicles: mutual funds available through Fidelity Investments, The Vanguard Group, DWS Scudder, and, the guaranteed and variable annuity Teachers Insurance and Annuity Association (TIAA), the College Retirement Equities Fund (CREF).

Direct links to the investment Companies:

• DWS Scudder http://www.dws-scudder.com/
• Fidelity Investments www.Fidelity.com
• The Vanguard Group www.vanguard.com
• TIAA-CREF www.TIAA-CREF.org

Salary Reduction Agreements authorization Creighton University to take monies from your payroll check and send them to the investment choice you elected.  This form provides the percentage allocation you wish to contribute under the retirement plan.

Each of the four investment providers has its own application.  If you decide to invest with more than one investment provider, multiple applications are required.

You are able to name persons or institutions/trusts as primary beneficiaries of your Retirement Plan accounts. For each person, you will be asked to provide first and last name, date of birth, Social Security number, relationship, and percent of benefit he or she is to receive. For trusts, you will be asked to provide the name, date established (trust date), trustee of the trust, and tax ID number.  You may also name contingent beneficiaries to receive your benefit, in case your primary beneficiaries predecease you.

If you are married, you are required by federal law to name your spouse as beneficiary of at least 50% of your Retirement Plan account.

	403(b)
Contribution Limits	$15,500 if under age 50 in 2007 $20,500 if age 50 or older in 2007
Catch-Up Provision	Yes, 15 year service with Creighton University – $3,000 - Maximum Exclusion Calculation is Required to determine if eligible Yes, over age 50 catch-up provision $5,000
Incoming Rollovers	Yes, 401(a), 403(b)
Distributions after separation	Yes, Rollovers allowed after last payroll contributions have been sent to the investment provider.  Distributions forms can be obtained by contacting the appropriate investment company.  If married the spousal consent area of the distribution form must be signed in front of a notary.  Upon completion of the distribution form, please mail to: Creighton University Attn: Human Resources 2500 California Plaza Omaha, NE 68178
Taxes on distributions	YES, the investment company is required to withhold 20% for Federal income taxes. If a direct rollover to another investment plan or to an IRA ,no tax will apply.
In-Service Distributions	YES, after attaining age 59 1/2, Permanent Disability, Death
Early Distribution Penalties	YES, 10% Federal
Loan Option	No
Hardship Distributions	Yes. Financial Hardship – Immediate and substantial financial needs for: Medical expenses incurred by the participant, the participant’s spouse or dependents (see summary plan description for more details) Purchase of principal residence for the Participant (excludes mortgage payments but includes closing costs due to purchase) Payment of tuition for the next twelve (12) months of post-secondary education for the Participant, the participants’ spouse, and dependent children. This includes payment for tuition and related expenses, room and board, but excludes books. Prevent eviction of the Participant from, or a foreclosure on the mortgage of the Participant’s principle residences (requires eviction or foreclosure notice)
Subject to Minimum Required Distribution (MRD) Rules	YES, unless actively employed by Creighton University