Boise State University Human Resource Services - Benefits
Retirement
Retirement Plans |
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Eligibility
Employees are eligible for retirement benefits if they are working at least 20 hours per week and are expected to work at least five consecutive months. All benefit eligible classified employees are required to enroll in the Public Employee Retirement System of Idaho (PERSI). All benefit eligible professional employees and faculty are required to enroll in the Optional Retirement Plan (ORP), either with TIAA-CREF or AIG Retirement. There are professional employees and faculty that are enrolled in PERSI because they were vested and elected to remain in PERSI when the ORP was established.
Optional Retirement Plan (ORP)
The State Board of Education has selected TIAA-CREF and AIG Retirement as the Optional Retirement Plans available for Boise State faculty and professional staff. This is a mandatory retirement program. It is a defined contribution plan where both the employer and employee make contributions to the individual employee account. The plan is fully portable. The employee's contribution is 6.97% of all earnings, withheld pre-tax. The University's contribution to the ORP is 9.258%. Employees are immediately vested when enrolled in the ORP. To learn more about these optional plans, please visit the TIAA-CREF website or call David Penrose at TIAA-CREF at 866-842-2907, x5803. Or visit the AIG Retirement website or call Jennifer Braun-Blanco at AIG Retirement at 208-859-2728.
Public Employee Retirement System of Idaho (PERSI)
Membership is mandatory for all benefit eligible classified employees, including temporary employees on benefits, who are expected to work at least 20 hours per week for five or more consecutive months. Employee contributions consist of 6.23% of all earnings and are withheld pre-tax. Boise State pays 10.39% of the employee's earnings plus administrative costs. The PERSI Base Plan is a defined benefit plan. The lifetime allowance received at retirement is based on a formula and is not directly dependent on the amount of money contributed to PERSI. Employees are vested when they have acquired 60 months of service. For further details, please refer to the PERSI handbook available online at: http://www.persi.state.id.us/.
Supplemental Retirement Plans
All University employees are eligible to participate in supplemental retirement plans. The supplemental retirement account is entirely employee funded; Boise State University does not contribute to this plan. Faculty, classified and professional staff, enrolled in PERSI as their regular retirement plan, may enroll in the 403(b), 401(k), and the 457(b) plans. Faculty and professional staff enrolled in the ORP as their regular retirement plan may enroll in the 403(b) and the 457(b) plans. The 2007 dollar limit is $15,500 for the individual or combined 403(b) and 401(k) accounts. An additional $15,500 may be deferred into a 457(b) account. If over age 50, employees may defer an additional $5,000 in the combined 403(b) and 401(k) accounts and an additional $5,000 in a 457(b) account. Employees with 15 or more years of service with BSU may also be eligible for catch up provisions.
403(b)
The 403(b) is a retirement savings plan, which can only be offered by public school systems and other tax-exempt organizations. It is a tax-sheltered annuity where the employee may invest in annuities or mutual funds. It is very similar to qualified plans such as 401(k). It is entirely employee funded; Boise State University does not contribute to this plan. Payroll deductions are pre-tax. The employee may enroll at any time and all University employees are eligible. To sign up, the employee must complete an enrollment form with the company administering the 403(b). The employee may participate with TIAA-CREF, AIG Retirement, or additional vendors upon request. In addition the employee must complete a salary reduction form which can be located on the HRS website at: http://hrs.boisestate.edu/forms/403b.pdf. Please contact Human Resource Services, x1616, for additional information.
457(b) - Deferred Compensation
The 457(b) Deferred Compensation plan is very similar to the 401(k) and 403(b) plans. It is a tax advantaged retirement savings plan that allows employee salary deferral into the plan before income tax is paid. The money grows tax deferred until it is taken out of the plan. Once taken out, the money is taxed as income. Employees may enroll at any time and all university employees are eligible for this plan. To learn more about this plan, please visit the website or contact the representative listed for one of the following vendors: AIG Retirement, Jennifer Braun-Blanco 208-859-2728; Nationwide, 208-342-8657, ext 3, 1-800-627-1583, and Voice Response System 1-866-432-6789, or http://www.idahodc.com/; or TIAA-CREF, David Penrose 866-842-2907, x5803. A Salary Reduction Agreement will also need to be completed and returned to Human Resource Services, MS-1265. This form can be located on the HRS website at: http://hrs.boisestate.edu/forms/457b.pdf.
401(k) - PERSI Choice Plan
This is only available to active PERSI members. The Choice Plan contains your gain sharing distributions, any voluntary contributions you make, and the earnings on those funds. Payroll deductions are pre-tax. Contributions are made in percentages or flat dollar amounts. For further details, please refer to the PERSI handbook available online at: http://www.persi.state.id.us/. To enroll, please call toll-free 1-866-ID-PERSI. A Salary Reduction Agreement will also need to be completed and returned to Human Resource Services, MS-1265. This form can be located on the HRS website at: http://www.persi.idaho.gov/html/Forms/rs801.pdf.
Roth 403(b)
The Roth 403(b) is an after-tax payroll deduction with tax-free withdrawals of interest and earnings at retirement. Employees may enroll at any time and all university employees are eligible for this plan. To learn more about this plan, please visit the website or contact: AIG Retirement, Jennifer Braun-Blanco 208-859-2728. Online enrollment will be available at a later date. A Salary Reduction Agreement will also need to be completed and returned to Human Resource Services, MS-1265. This form can be located on the HRS website at: http://hrs.boisestate.edu/forms/Roth403bAfterTax.pdf.
Phased Retirement
Boise State University offers eligible faculty who plan to retire the option of "phasing" into complete retirement by various combinations of partial appointments that amount to less than half-time (i.e., not greater than 49%). Phased Retirement (the Program) shall be allowed only after a determination that part-time continued appointment not only benefits the individual faculty member retiree but also will result in a significant benefit to the University. Appointment to the Program shall be for a specific period of time not to exceed three academic years. Such appointments shall terminate at the expiration of the phased retirement period and existing policies of the University related to part-time appointments and/or emeritus faculty status apply. However, individuals may negotiate an extension of the phased retirement agreement after satisfactory service during the previous period. For additional information, please go to Policy 5371-B located at http://www.boisestate.edu/policy/index.asp?section=5&policynum=5371.