MINNESOTA STATE COLLEGES & UNIVERSITIES

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.

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.

• 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.
     

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.