1. Student Employment Services
SERP & Medicare

2. SERP & Medicare CSU is NOT a Social Security Employer
Employees of CSU do not participate in the Social Security program and a pension from this job could affect future Social Security benefits to which you may become entitled

3. SERP & Medicare What is SERP? What is Medicare?
The Student Employee Retirement Plan is a state-mandated retirement plan requiring contributions from gross pay by all “eligible” student employees in lieu of traditional Social Security contributions
What is Medicare?
Medicare is a health insurance program that also requires contributions from gross pay and provides health insurance for people:
age 65 or older
Under age 65 with certain disabilities

4. SERP & Medicare What is Social Security?
Social Security is a federally mandated supplemental retirement system in the US
Established in 1935 as part of Roosevelt's New Deal
To counter conditions witnessed during the Great Depression
Ensures that retired/disabled citizens are not left in dire poverty by providing monthly subsistence
Important: If we didn’t have SERP, you would have to pay into Social Security

5. SERP & Medicare How much is deducted from my pay?
Total of 8.95% from your gross pay
SERP – 7.5%
Medicare – 1.45%
A retirement savings account will be established in the student’s name at TIAA/CREF for all SERP contributions
Contributions made to Medicare go to support that fund for current recipients of Medicare –
Theoretically, your grandchildren will pay for your Medicare coverage
Is participation mandatory?
Yes, unless certain conditions are met (Students)

6. SERP & Medicare What conditions must I meet to be exempt? Summer
Undergraduate & Graduate Students – must be officially admitted as a degree-seeking student at CSU (Fort Collins) and enrolled at least half-time (defined as 3 credits) for a summer term running concurrently with your work schedule.
Fall & Spring
Undergraduate Students – officially admitted as a degree-seeking student and enrolled at least half-time (6 credits)
Graduate Students – officially admitted as a degree-seeking student and enrolled at least half-time (5 credits)

7. SERP & Medicare
How or when is my SERP/Medicare contribution eligibility determined?
Enrollment checked every pay period end date for biweekly pay periods
Enrollment checked the 15th of every month for monthly pay periods
If not enrolled at least half-time at the time of the SERP enrollment check, assessed SERP/Medicare
No exceptions

8. SERP & Medicare
Do I have access to the money contributed to SERP or Medicare?
SERP -
Allows for a refund of your contributions and any interest upon termination of employment AND departure from the University as a student.
Warning: If you withdraw your funds, those funds will likely be taxed as ordinary income in the year it is withdrawn and may also be subject to an additional 10% early withdrawal penalty.
Note: you cannot withdraw any Social Security contributions
Medicare –
Not allowed to withdraw the contributions made to Medicare

9. SERP & Medicare
Other options available when managing my SERP contributions after graduation or leaving the University
Maintain the retirement account with TIAA-CREF
Roll over the account to an IRA with TIAA-CREF or another firm, or another employer sponsored retirement plan

10. SERP & Medicare SSA-1945 Disclosure Form
Since you will not be paying into the traditional Social Security retirement fund, your future Social Security benefits will be modified
Windfall Elimination Provision
The Windfall Elimination Provision affects how the amount of your retirement or disability benefit is calculated if you receive a pension from work where Social Security taxes were not taken out of your pay. A modified formula is used to calculate your benefit amount, resulting in a lower Social Security benefit than you otherwise would receive.

11. SERP & Medicare SSA-1945 Disclosure Form (cont’d)
Government Pension Offset
If you receive a pension from a federal, state or local government based on work where you did not pay Social Security taxes, your Social Security spouse’s or widow’s or widower’s benefits may be reduced.

12. SERP & Medicare Traditional employment, non-university employee Review
Gross Pay
Social Security
Withdrawal of funds, or manipulation of funds not allowed
May receive retirement benefit at age 65 or older
Medicare
Similar to Soc Security - No withdrawal allowed
Health insurance at age 65 or older
Review
Traditional employment, non-university employee

13. SERP & Medicare University Employee Review Gross Pay 8.95% SERP 7.5%
Withdrawal of funds, or manipulation of funds allowed
May rollover to IRA or add to another future retirement plan
Medicare 1.45%
Similar to Soc Security - No withdrawal allowed
Health insurance at age 65 or older
Review
University Employee

14. Student Employment Services
Questions?
Student Employment Services
SES.COLOSTATE.EDU
Phone:
Fax:
Jenny-Leigh Adler
Karri White
Jillian Zucosky