Retirement Benefits for University Employees Enrolled in the Plan H Benefit Program
This summary provides information on the retirement benefits for University employees enrolled in the Plan H Benefit Program. These rules are effective for contributions made July 1, 2008 or later. Other rules apply to contributions made prior to July 1, 2008. Contact the University Benefits Department at (801) 581-7447 for additional information.
401(a) Defined Contribution Retirement Plan - "401(a) Plan"
- All eligible employees are automatically enrolled when they are hired into an eligible position (there is no waiting period)
- The University contributes an amount equal to 6% of your pay to your retirement account
- Contributions are made each pay period
403(b) Supplemental Retirement Savings Plan - "403(b) Plan"
- The University will match an employee’s contributions to the 403(b) Plan up to 3% of the employee’s pay
- Matching contributions are deposited each pay period a 403(b) Plan employee contribution is made
Vesting Requirements
- University contributions to the 401(a) Plan and matching contributions to the 403(b) Plan are subject to vesting requirements
- Employees are 50% vested in University contributions after four Years of Service with the University
- Employees are 100% vested in University contributions after six Years of Service with the University
Years of Service
- Years of Service begin on the employee’s original date of hire in a benefit-eligible position with the University
- Years of Service DO NOT accrue during:
- Termination of employment longer than 31 days (employees rehired within 31 days are reinstated without break in service)
- Transfer to a per diem or other part-time non-benefited position
- Transfer to a benefit-eligible University or SOM position eligible for the University retirement plan (however, Years of Service in the benefit-eligible University or SOM position will be credited upon reenrollment into the Plan H Benefit Program if the employee returns to employment eligible for the Plan H Benefit Program
Forfeiture Rules
- Non-vested dollars (including gains) are forfeited upon the following events:
- Termination of employment longer than 31 days
- Transfer to a per diem or other part-time non-benefited position
- Transfer to a University or SOM position eligible for the University Benefit Program
- If an employee is 50% vested when one of the above events occurs, 50% of the total funds in the employee’s account will be forfeited
- If an employee returns to employment eligible for the Plan H Benefit Program within one year, forfeited dollars will be reinstated
QUESTIONS AND ANSWERS
Where will my 401(a) Plan contributions be sent?
Investment Providers for the University's retirement plans are Fidelity Investments and TIAA. If you already have a 401(a) Plan account, future contributions will be sent following each pay period to your current investment provider(s). If you are not yet participating in the 401(a) Plan, an account will be opened for you with the default investment provider (Fidelity Investments through June 30, 2013). You may change your investment provider(s) at any time. If you would like contributions sent to the other provider or divided between the two providers, complete an Investment Provider Change Form.
How are Years of Service calculated?
A Year of Service is any 365 calendar days of service in a benefit-eligible position with the University. A period of termination of employment (or employment in a position not eligible for the Plan H Benefit Program) of less than 32 consecutive days will be ignored. If your period of termination of employment (or employment in a position not eligible for the Plan H Benefit Program) is greater than 31 days, you will not be credited with a Year of Service until your pre-break and post-break periods of employment equal one year (i.e., 365 days). Years of Service in a University position eligible for the University Benefit Program may be credited following rehire into a position eligible for the Plan H Benefit Program.
How do I start receiving matching contributions in the 403(b)Plan?
When you begin contributing to a University 403(b) Plan Account with Fidelity Investments or TIAA, matching contributions up to 3% of your salary will begin automatically. If you begin participating at a later date, the matching contribution will begin when your first deferral to the 403(b) Plan is made. If you would like to (i) begin participating in the 403(b) Plan, (ii) increase or decrease your deferral amount, or (iii) change your investment provider(s) for future deferrals and matching contributions, fill out a 403(b) Plan Salary Reduction Form. You may start, stop, or change your participation in the 403(b) Plan at any time. The HPP Benefit Program vesting period on matching contributions will be calculated using your Years of Service, regardless of when you begin deferrals to the 403(b) Plan.
Will the match apply to my Roth after-tax deferrals to the 403(b) Plan?
Yes. The University will match both pre-tax and Roth after-tax deferrals. The matching contribution will always be pre-tax (meaning you will pay taxes on the vested dollars and earnings when you withdraw them from your account at retirement).
Can I have my deferral to the 403(b) Plan and the matching contribution sent to different investment providers?
No. The matching contribution will mirror your elective deferral to Fidelity Investments and/or TIAA. For example if you are deferring 6% of your salary and dividing it 50% to Fidelity Investments and 50% to TIAA, the 3% match will be divided 50% to Fidelity Investments and 50% to TIAA.
If I terminate my employment before I am 100% vested in the University contributions, what will happen to the non-vested money in my 401(a) and 403(b) accounts?
If your employment is terminated or you transfer to a position not eligible for the Plan H Benefit Program before you are vested in the University contributions, the entire amount of funds in your account will be forfeited. If you are 50% vested at the time of your termination or transfer, one-half of the total amount in your account will be forfeited. (Your deferrals to the 403(b) Plan and earnings on those deferrals are tracked separately by the Investment Providers. You are always 100% vested in those amounts.)
Where can I get additional information?
Contact the University Benefits Department at (801) 581-7447 or schedule an individual, confidential counseling session with one or both of the investment providers. See the Benefits Department's Retirement Plans website for additional information, forms, and links to the investment providers' websites.
| University of Utah Retirement Plan Investment Providers | |
| Fidelity Investments (800) 343-0860 M-F 6 am to 10 pm MT http://plan.fidelity.com/uofu |
TIAA (801) 883-5100 M-F 6 am to 8 pm MT www.tiaa-cref.org/uofu |
| To schedule a free confidential individual consultation | |
| (800) 343-0860 www.plan.fidelity.com/uofu |
(801) 883-5100 www.tiaa-cref.org/uofu |