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- Northwestern Oklahoma State University
- Prepared by
- Human Resources Office
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- Social Security
- Oklahoma Teacher’s Retirement
- TIAA-CREF Retirement Annuity (R.A.)
- BOROC Supplemental Retirement Plan (if full-time continuous and in
Teacher’s Retirement before 7-1-95, with required years of service per
Supplemental Plan Document)
- Optional employee-paid contributions to Tax Deferred Annuities
(T.D.A.s)—approved under Section 403(b)
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- Since 1987, NWOSU has sent contributions to Employer-paid R.A.s for
qualifying employees
- TIAA-CREF designated to receive funds
- Current Rate: 6% X regular gross
pay as listed on Letters of Appointment
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- TIAA-CREF Employer-paid Retirement Annuity contract restrictions
(current)
- Cannot withdraw while still employed here
- No loan provisions
- Not Vested for 1 full year in regular, full-time position in B.O.R.O.C.
- Not covered until age 23, then not vested for 1 full year
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- Referred to as “T.D.A.s” or “T.S.A.s”
- Reduce federal and state Taxable Gross for income tax purposes
- Principal and Earnings “tax deferred” until withdrawn
- Choice of several companies
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- CY 2004: Section 402(g) limits
403(b) contributions to $13,000
- After 50 years old, eligible for “50+ Catch-Up” contributions
- If employed at NW at least 15 years, can pre-tax additional $3,000 a
year for 5 years
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- July 1, ’04, the 6% amount the University currently pays as a fringe
benefit will be moved over to regular salary
- Regular gross pay on Letters of Appointment will include it
- Employees must give signed permission to tax-shelter
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- Option 1: Protect full 6% amount
from income taxes
- Option 2: Leave full 6% as salary
for more take home pay to help with today’s bills
- Option 3: Some combination of
Options 1 and 2
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- TIAA-CREF
- Oklahoma Teacher’s Retirement System
- American Fidelity Assurance
- American Express
- T. Rowe Price
- Vanguard
- Fidelity Investments
- American Funds (new 7-1-04)
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- Loan privileges
- Withdrawals allowed with “triggering events” such as:
- Disability
- Separation from service
- Reaching age 59 1/2
- Death
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- “I’m not old enough to need to think about investing for retirement…am
I?”
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- Jean started at age 25 (Alex at 35)
- Jean stopped at age 35 (Alex at 65)
- Both contributed $125 a month
- Both chose investments that earned 8% annual return
- Jean left her money alone until age 65
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- “How much will I need after I retire?”
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- Answer: Everyone’s situation is
different, but American retirees are living longer and spending more
than ever before. There are easy
to complete worksheets that will help you decide how much is enough for
you. Call Human Resources at
327-8530 for more information.
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- Some people plan ahead, but many fail to plan. Start today:
- Call O.T.R.S. at 877-738-6365 for a free Benefit Estimate, or go
to: trs.state.ok.us and select
the online Benefit Calculator link
- Call TIAA-CREF at 800-842-2776 for information about your R.A.
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Notes
