MINNESOTA STATE COLLEGES & UNIVERSITIES

Supplemental Retirement Plan (SRP)

These are important details regarding this plan.

ELIGIBILITY

Employees are eligible for the Supplemental Retirement Plan (SRP) on July 1 following completion of two full-time years of service as a faculty member, in an unclassified educational administration position, as a MnSCU Administrator, or any combination thereof. A full-time year must be earned within one fiscal year.

Partial years of service are not cumulative over several years. However, the two full-time years do not have to be earned in consecutive fiscal years. All unclassified service with the Community Colleges, State Universities and Technical Colleges count toward earning the required two full-time years of service.

Once an employee has met the eligibility requirements, all future service (in eligible positions) will be covered by the Supplemental Retirement Plan. Future service includes part-time appointments and service following a termination or leave. Future service does not include additional employment following retirement.

Participation in SRP is mandatory upon meeting the eligibility requirements. Upon becoming eligible, employees receive notification of their eligibility along with information on the investment options available in the Plan. The employee is set up on the payroll system effective July 1 of the fiscal year in which they become eligible for the plan. Payroll deductions will begin when they meet the $6,000 compensation minimum for the Plan.

CONTRIBUTIONS

An employee enrolled in the Supplemental Retirement Plan (SRP) is required to make contributions to the Plan through payroll deduction.

Deductions are taken at a rate of 5% on gross compensation in excess of $6,000 but limited to the maximum set by the employee's bargaining unit or personnel policy. The amount of SRP contribution required for employees is specified in their bargaining agreement or personnel policy.

Contributions are deducted from each paycheck on a pretax basis and deposited in the Plan. The contributions are subject to Social Security tax, so the participant's future Social Security benefits are not reduced by participation in the Plan.

EMPLOYER MATCHING

A participant who is currently employed and has employee SRP contributions deducted from their pay receives MnSCU matching contributions. MnSCU makes a contribution equal to 100% of the employee's contributions to the SRP.

VESTING

"Vesting" refers to an employee's right, usually earned over time, to receive some retirement benefits regardless of whether or not they remain with the employer. Your contribution to this account will be 100% vested immediately.

INVESTMENTS

Your employer offers you a variety of investment choices from an array of asset classes. You can see a list of the investment choices under this plan on the Investment Choices page.

EXPENSES

Expenses vary from investment to investment. To learn about expenses associated with an investment, see a list of the investment choices under this plan on the Investment Choices page, and read the Fact Sheet or the prospectus for that investment.

DISTRIBUTIONS

You have a variety of options1 when it’s time to take income from this plan:

  • Interest Only

    You can receive the current interest earned on your TIAA Traditional Account in monthly payments. Your principal remains intact while you receive the interest.

    • These payments are generally available to individuals between ages 55 and 70½ when minimum distributions are required.
       
  • Lifetime Retirement Income

    • One-life annuity — provides income for as long as you live.
       
    • Two-life annuity — provides lifetime income for you and an annuity partner (your spouse or someone else you name) for as long as either of you live.
       
    • One- or two-life annuity with guaranteed period — guarantees income for up to 20 years, as long as the period you choose does not exceed your life expectancy. It ensures that income continues to go to your beneficiaries for the remainder of the guaranteed period if you (one-life annuity) or both you and your annuity partner (two-life annuity) die before the end of that period.
       
  • Lump Sum

    You can withdraw all or part of your account in a single cash payment, depending on your plan rules and the terms of your contracts.

    • Your right to a lump-sum distribution from your TIAA Traditional Account may be restricted to taking 10 annual payments under those terms.
       
  • Minimum Distribution Option

    Generally, you must begin taking minimum withdrawals from your account by April 1 following the year in which you turn age 70½ or retire, whichever is later.

    • This can help you defer the minimum required distribution while keeping you in compliance with federal regulations.
       
  • Retirement Transition Benefit

    If your contract allows, you can withdraw, in cash, up to 10% of your accumulation at the beginning of a conversion to lifetime annuity income. The amount you withdraw will reduce your lifetime annuity income accordingly.
     
  • Single-Sum Death Benefit

     A set amount your beneficiary(ies) will receive from your retirement account if you die before taking income.
     
  • Small-Sum Distribution

    If your plan doesn't otherwise allow cash distributions, upon separation from service you can withdraw your entire retirement savings if your TIAA Traditional Account value does not exceed $2,000 and your overall account balance is below a limit set by your employer's plan (typically $4,000). If your plan does allow cash distributions, upon separation you may be able to withdraw your TIAA Traditional accumulation if the value does not exceed $2,000. Talk to your benefits office for details.
     
  • Systematic Withdrawals

    If your plan allows, you can choose to receive regular income payments (minimum $100) on a semimonthly, monthly, quarterly, semiannual or annual basis. You can increase, decrease or suspend the payments at any time.

    • These withdrawals are not available from TIAA Traditional Account balances.
       
This plan is designed to provide you with income throughout your retirement. Leaving money in your account may allow the funds to grow on a tax-deferred basis.

This plan allows you to receive a cash withdrawal. This may be restricted by the terms of your TIAA-CREF contracts. Taxes and penalties may apply.

TAXATION

Retirement plan contributions are usually made with before-tax dollars so Federal income taxes are deferred until you begin taking withdrawals later on.

No taxes are due on pre-tax contributions and earnings made until the money is withdrawn, but because these plans are intended primarily for retirement, you can generally withdraw funds only after termination of employment or age 59 ½ (subject to plan rules). If you withdraw funds before age 59 ½, they may be subject to an additional 10% early-withdrawal penalty.

For additional information and guidance, contact your tax advisor.

LOANS

This plan does not offer a loan feature.


1 The availability of certain distributions may depend on the type of contract underlying your plan. Also, if you're married, your right to choose an option may be subject to your spouse's right to survivor benefits. Talk to your benefits office for details.

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