Benefits Retirement

Information and Facts Basic Retirement Benefits Defined Benefit Plans Facts about your Retirement Retirement Privileges     Retirement Sessions Retirement Counseling Retirement Sessions Premiums

Vendors ATRS APERS TIAA-CREF Fidelity Investments

Basic Retirement Benefits

The University of Arkansas's retirement plan operates under Section 403(b) of the IRS Code. You will have the option of investing with either TIAA-CREF and/or Fidelity Investments. You may choose to invest with one or both of the companies. Subject to plan restrictions, you may transfer accumulations from one company to another. You may also be able to participate in ATRS or APERS.

The University will contribute an amount equal to 5% of your regular salary whether or not you contribute. At no time can the combined employee and employer contributions exceed the limitations established by the Internal Revenue Code. If you do elect to contribute to the Plan, the University will make additional contributions of percentage of your regular salary, according to the following schedule:

Important Facts about your Retirement

What Does Vesting Mean?

Vesting means that you are given ownership of the money within your retirement account. The money can not be forfeited for any reason. This money is yours and will follow you if you change jobs within the University of Arkansas System or leave the UA System entirely.

All of a participant's contributions are vested immediately. Contributions by the University for all non-classified employees (including faculty members) are immediately vested. For all other employees , all plan contributions made by the University are vested once one of the following Vesting Requirements is met:

You are vested once you meet one of these criteria:

• Immediate vesting - if you are currently or become a non-classified employee
• The end of six consecutive months during which you contributed at least 5% of your regular salary
• Three years of consecutive UA service, if you contribute less than five percent of your salary
• Attainment of the age of 65

Pre-Tax: If you decide to go with the pre-tax plan your contribution will be deducted from your salary before your state and federal taxes are calculated. What this means is your taxes are based on what you make after you make your retirement contribution. This allows you to defer taxes (Federal and State) on monies contributed to your retirement plan.

After Tax: Your retirement plan contribution will be made after the applicable taxes have been taken out of your salary.

Non-Contributory: If you choose not to contribute any of your salary, or less than 5% toward your retirement fund, the UA System will contribute an amount equal to 5% of your salary to your retirement fund. This contribution will not reduce your salary. You may direct the investment of these monies just as if it were your own money being contributed.

Contributory: If you choose to contribute part of your salary toward a retirement fund, the UA System will match your contribution up to 10% of your salary. This means if you contribute 10% of your salary toward your retirement fund the University will match that 10% for a total of 20% of your salary being contributed toward your retirement. You may be able to contribute more than 10%, and the University of Arkansas will match up to 10%. All contributions are subject to Internal Revenue Code limitations and regulations.

Defined Benefit Plans

Offered through either the Arkansas Public Employees Retirement System (APERS) or the Arkansas Teachers  Retirement System (ATRS). Defined benefit plans offer a pension based on a formula which takes into account the number of years of participation on the plan and average annual salary, not contributions made to the plan. A cash option is not available for either APERS or ATRS. Both APERS and ATRS are vested after five years of participation on the plan. Once you elect to participate in either of the Defined Benefit Plans, you may not choose to participate in the Defined Contribution Plans (TIAA/CREF & Fidelity) in the future.

Contributions  APERS: The University Contributes 10% , employee contributes nothing. ATRS: Contributory - the University contributes 12%, employee contributes 6%.  Non-contributory - the University contributes 12%, employee contributes nothing.

ATRS

Arkansas Teachers Retirement System
Requires 5 years of previous participation in ATRS at an eligible state employer. Cannot enroll in ATRS unless you are already vested.

• Non-Contributory Plan: You contribute nothing; University contributes 14%.
• Contributory Plan: You contribute 5%; University contributes 14%.

For further information contact the Benefits Office or

Arkansas Teacher Retirement System
1400 West Third
Little Rock, Arkansas 72201
www.atrs.state.ar.us
(800) 666-2877

APERS

Arkansas Public Employees Retirement System
The 2005 Contributory Program Act 2084 of 2005 establishes a new contributory program that requires members to contribute to the retirement system. Members participating in the contributory program contribute 5% of their annual compensation, pre-tax (taxes are deferred).

• All APERS members employed before July 1, 2005, have six (6) months to elect coverage under the contributory program. The deadline to elect to be contributory is December 31, 2005.
• If a member is already, and chooses to remain contributory, the member does nothing. Their retirement plan and benefit options remain the same. APERS members hired on or after July 1, 2005, do not have a choice. They will be automatically enrolled in the contributory program.
• The University contributes 12.54% each pay period… Along with the employees 5% mandatory contribution.

For further information contact the Benefits Office or

Arkansas Public Employees Retirement System (APERS)
One Union National Plaza, 124 W Capitol, Suite 400
Little Rock, Arkansas 72201
Phone: (501) 682-7800
(800) 682-7377
Fax: (501) 682-7840
www.apers.org

Retiree Privileges

Employees about to retiree need to contact Carol Hill @ 575-6215 or carolh@uark.edu

In recognition of long-time service to the University of Arkansas, employees may be eligible for certain privileges at the time of retirement. In order to be considered for these privileges, on the date of retirement the employee must meet certain length of employment criteria.

Insurance Benefits for Eligible Retirees

An Eligible Employee who retires while covered under the University's health and life insurance plan and has age and continuous years of service with the University of Arkansas System equal to a total of 70 and has completed 10 or more years of continuous coverage under these plans may be eligible for Retirement Insurance Benefits.

If you meet the above listed eligibility requirements you are entitled to:

• $10,000 Retiree Life Insurance Policy and;
• Continuation on the University's Health Insurance.

If you are over age 65, your University medical insurance coverage will supplement Medicare. The same plan provisions you currently have with the University's medical insurance will continue with supplement coverage.

Retirees are responsible for 100% of the cost of insurance.

Miscellaneous Retirement Privileges

A retiree meeting one of the conditions below is also entitled to a retiree ID card which provides the following privileges:

1. The retiring individual is age 65 or older and has at least five years of continuous service with the University.
2. The retiring individual is age 62 or older and has at least ten years of continuous service with the University.
3. The retiring individual has at least 20 years of continuous service with the University.
4. The retiring individual has elected to retire early under the early retirement provisions of Administrative Memorandum 430.2 or 430.3.

• Inclusion in the campus directory, catalog, and other listings of campus faculty/staff
• Faculty/staff admission to campus activities and events
• Continuation of purchase of up to two season books of football, men's basketball, and men's baseball tickets at 1/2 price
• Use of University libraries.
• Eligibility for UA parking permit.
• Eligibility for membership in the HPER facility.
• Free access to the internet and UA e-mail.