Retirement Savings Plan

The purpose of the Northwestern University Retirement Plan is to provide faculty and staff with the opportunity to accumulate a source of retirement income in addition to income from Social Security and personal savings. The money you contribute to the Retirement Plan belongs to you and is immediately vested.

Retirement Savings Plan Summary Plan Description

Plan Benefits

Any regular employee, with at least one year of service, scheduled to work half-time or more (17.5 or more hours per week) and is at least age 24 may participate in the University's Basic Matched, Basic Unmatched, and Basic Supplemental Retirement Plans.

•  Unmatched Plan: 5% of eligible earnings; funded entirely by Northwestern University

•  Matched Plan: 1%-5% of eligible earnings; Northwestern University matches employee contributions

•  Supplemental Plan: Percentage of eligible earnings or flat dollar amount; entirely funded by the employee

 Any employee not eligible to participate in the Northwestern University Retirement Plan may participate in the Voluntary Retirement Plan.

•  Voluntary Plan: Percentage of eligible earnings; entirely funded by the employee

• Voluntary Retirement Plan contributions are only deducted from wages, not scholarship funds.
  
• Voluntary Savings Plan Summary Plan Description

Eligible Earnings

•  Your 403(b) retirement contributions are calculated by using your base salary including all eligible earnings.

•  Additional pay for supplemental pay, temporary assignments and additional assignments are included for employees who do not meet the IRS limit of highly compensated, which is $115,000.

IRS Contribution Limits

For 2012, the calendar-year limit on total contributions is the lesser of 100% of your compensation or $50,000. This limit may be adjusted from time to time by the IRS. This limit applies to the sum of:

• Employee match and supplemental contributions
• NU Employer unmatched and match contributions

Note: The limit also applies to any contributions you make to another employer retirement plan, a Keogh plan, or a qualified plan of an employer you control, such as a business you own.

Enroll in the Plan

•  Make elections in Self Service upon hire

•  Voluntary contributions begin the first of the month following enrollment.

•  Matched, Unmatched and Supplemental contributions the first of the month following your 1-year anniversary (must also meet other eligibility criterion)

•  Submit a completed Service Waiver to waive the 1 year waiting period.

•  Set up an account with your investment company

•  TIAA-CREF : 403(b) plan ID 101332, 457(b) plan ID NU457B

RA-GRA-GSRA Contract Comparison Chart (pdf)

•  Fidelity Investments : 403(b) plan ID 56005, 457(b) plan ID 71102

Change Enrollment in the Plan

•  Use Self Service to enroll or change your contribution amount or investment company allocation

•  Changes are effective the first of the month following the month changes are submitted.

Transfer Funds between Investment Companies

Should you have an interest in transferring funds, all you need to do is to contact the investment company to which you want the funds transferred.

Matched and Unmatched Funds

•  Transfer from TIAA: $10,000 minimum transfer; transfers spread over a 10 year period

•  Transfer from CREF: $1,000 minimum transfer; transfers less than $2,000 occur immediately

•  Transfer from Fidelity: No minimum transfer; transfer occurs immediately

Supplemental and Voluntary Funds

•  $1,000 TIAA-CREF minimum transfer; $250 Fidelity minimum transfer; transfer will occur immediately

Withdraw from your Retirement Savings Account

Matched and Unmatched Funds

•  You may withdraw contributions only upon separation or retirement from the University

•  You have the option of receiving funds in the form of monthly annuity income upon retirement

•  If you have participated in the plan for more than five years or accumulated funds greater than $4,000, you may also withdraw contributions for reasons of financial hardship.

Supplemental and Voluntary Funds

You can withdraw basic supplemental and voluntary contributions only on the basis of an IRS defined "triggering event" such as:

•  attaining age 59 1/2

•  disability

•  death

•  separation of employment

•  financial hardship

Financial Hardship

Monies received on the basis of financial hardship are subject to the investment company's approval and a 10% IRS penalty if withdrawn prior to age 59 1/2.

Financial hardship must meet an IRS qualifying reason which includes:

•  down payment on a home

•  prevention of eviction from a principal residence

•  dependent tuition expenses and medical expenses in excess of 7.5% of adjusted gross income

Alternatively, you may borrow against GRA, GSRA and SRA with TIAA-Cref, and matched, supplemental and voluntary Fidelity contributions.