Purdue Calumet-Faculty Senate October 6, 2010

 Must be 60 years of age:  Staff by January 31, 2011 or  Tenured Faculty by June 30, 2011  Must have been employed by the University in a benefits-eligible position for ten (10) or more years

 Health Savings Reimbursement account (HRA)  $35,000 for qualified medical expenses and those of eligible dependents (including health insurance premiums) $7,000 will be available for reimbursements over a five year period  Separation Pay  Tenured Faculty: One-half of annual base salary ▪ Faculty retiring by June 30, 2011 will receive Separation Pay July 29, 2011  Staff: One-fourth of annual base salary ▪ Biweekly staff retiring by January 31, 2011 will receive Separation Pay on February 23, 2011 ▪ Monthly staff retiring by January 31, 2011 will receive Separation Pay on February 28, 2011

 139 Eligible  19 Requests  Administrative – 7  Clerical – 4  Service – 2  Faculty – 6

 No new VEPR arrangements will be approved during the retirement incentive window September 1, 2010 through October 29, 2010

 Faculty and Administrative staff who receive TIAA-CREF contribution are impacted  Effective 1/1/11 these individuals will receive a 4% increase which will be redirected to the 401(a)  University will contribute 10% to 403(b)  Current VEPR’s – no change in contribution 11%/15%  Three year waiting period  Current participants as of 12/31/10 will have their salaries increased and begin the 10% University contribution and 4% to the 401(a) upon completing their three year waiting period  Individuals hired 1/1/11 and after will begin their 4% mandatory contributions to the 401(a) immediately upon hire. Purdue 10% will begin upon completion of three year waiting period

 University studied and determined faculty/staff could increase their retirement savings if they paid lower fees  More choices for faculty/staff  Roth IRA-403b voluntary contributions  Tiered Investment Approach  Provide objective guidance and education to plan participants both in accumulating assets and distribution of assets

 You must select your investment options and beneficiaries by December 31, 2010  Online  Phone  In Person (Sessions on campus are 10/25 and 10/26. More group and one/one sessions to come in November and December)

 This decision does not need to be made by a specific deadline! You can discuss with your financial advisors and Fidelity to see what your options are. Most likely decisions will be:  Nothing – let it stay at TIAA-CREF, or  Roll it over to Fidelity (discuss with Fidelity)

 Plan administrative Fees – Fidelity will charge participants a flat quarterly fee of $21.75/annually $87 regardless of account size  Asset Based Fees- Fees charged for the funds you have selected. Compare investment fees of each fund offered when you enroll.  Individual Service Fees – Initiating a loan or conducting certain transactions within the self-directed brokerage account.  TODAY the average administrative fee for a retirement accumulation of $100,000 is $250 a year – increases to $500 a year for $200,00 accumulation etc

 Stay tuned to the University Senate meeting on Thursday, October 7, 2011 at 8:00 a.m. in Alumni Hall