Human Resources > Benefits > Life Change > Retirement Planning Guide

Retirement Planning Guide

This Guide has been jointly prepared by the Office of the Provost and the Office of Human Resources, Benefits Division to assist faculty and staff plan for retirement. Since programs can change, individuals are encouraged to check with the Provost and Benefits Division Offices to verify that the information provided below is still accurate.

A note on retirement laws:: Though compulsory retirement at a given age is generally not permitted by law, current Federal Law requires that, at age 70 1/2, a set minimum distribution of retirement and other tax deferred funds must begin, including IRA funds. The exact amount for each retirement account will depend upon the amount invested. It is likely that organizations hold your tax-deferred retirement funds will notify you, sometime prior to the time you reach this age, regarding the various options for the distributions of funds you hold with them. Otherwise, you should take the initiative to contact these organizations. Failing to adhere to the Federal minimum withdrawals may subject you to financial penalties.

For calendar year 2009, there is a temporary waiver of the minimum required distribution. If you reach age 70 1/2 in 2009, you are not required to take a minimum distribution from your 403(b) plan.

Timetable

3 Years Prior to Retirement:

Start to evaluate your retirement income options from Social Security, your Retirement plan at Northwestern, other sources
- Set up an appointment with TIAA CREF: 800-842-2005
- Set up an appointment with Fidelity: 800-642-7131
Begin updating any beneficiary information, wills, trusts etc
Faculty Members should be conscious of the needs of their replacement and give consideration to the amount of time to find and train a suitable person.

1 Year Prior to Retirement

Review your income options
Finalize any beneficiary information, wills, trusts, etc.
Evaluate the department's requirements with regards to giving your notice of retirement

90 Days Prior to Retirement

Set an appointment with the Social Security Office and Medicare
Set an appointment with a Benefit Counselor to review the retirement medical information. Come prepared with a list of questions.
Contact your investment company to make arrangements for Retirement payments
Formalize your resignation with your department

*The Faculty Handbook states: A faculty member who desires to resign his/her faculty appointment is expected to notify the dean of the school no later than May 1 of the academic year prior to the year in which the resignation would take effect or 30 days after receiving notification of the terms of continued appointment for the academic year in which the resignation will occur, whichever is later.

*The Staff Handbook states that two (2) weeks of working notice is the minimum amount required in order to leave the University in good standing.

Month of Retirement

Submit the Retirement medical, dental and vision enrollment forms to the Benefit Office
Submit the Retiree Privileges form to continue your Wildcard and Email to Payroll
Confirm that your mailing address and contact information are updated with the Benefits Division if you are keeping the Northwestern benefit plan(s).

KEEPING IN TOUCH WITH THE NORTHWESTERN CULTURE

Once you have retired, the journey is not over. Northwestern encourages the participation and involvement of its retired faculty and staff members. The options listed below are just a small part of what you may continue to enjoy and contribute to here at Northwestern. For a more complete and up-to-date listing of Events, you may visit the Plan-It-Purple calendar on the Northwestern homepage at www.northwestern.edu look under Calendar of Events.

• Contact Northwestern Athletics & Recreation, otherwise known as SPAC, to find out about any discounts that may be offered.
• Consider taking classes at the School of Continuing Studies. You would still receive the NU discount.
• Consider joining a discussion group at the Osher LifeLong Learning Center.
• Remember to get a new Wildcard once retired so that you and your spouse can enjoy all that NU offers both on campus and around town.
• Enjoy Northwestern and life from a different perspective!