WSU Retirement Plan Roles and Responsibilities
Retirement Plans WSU Retirement Plan 3,628 PERS 1 126 WSTRS 1 9 LEOFF 2 19 PERS 2 1,698 PERS 3 724 FCSRS 30 FERS (1 1 87) 23 TOTAL 6,257
What is the Washington State University Retirement Plan? The Washington State University Retirement Plan (the Plan ) is a pension plan provided to faculty and other eligible staff. It was originally established on January 1, 1947. Statutory authority for the Plan is provided in RCW 28B.10.400, et. seq. The Plan qualifies under Sections 401(a) and 403(b) of the Internal Revenue Code (IRC). The purpose of the Plan is to provide retirement income, in addition to earned social security, for participating employees. Washington State University is the administrator of the Plan and is responsible for plan operation. Benefits are currently provided through: Teachers Insurance and Annuity Association College Retirement Equities Fund (TIAA-CREF)
RCW 28B.10.400, et. seq Annuities and Retirement Income Plans (See handout for complete RCW)
Participants Board of Regents Plan Carrier HRS Benefits Office Employee
Board of Regents Adoption of the rules and regulations governing the Plan.
Plan Carrier TIAA-CREF TIAA-CREF (Teachers Insurance & Annuity Association - College Retirement Equities Fund), a national financial services organization that manages plans of many colleges and universities nationwide is currently the only plan carrier. TIAA-CREF has been the plan carrier for the Plan since 1947.
Plan Carrier Continued TIAA/CREF provides guaranteed and variable annuities, and mutual funds in which Plan participants choose to invest their and the University's matching contributions and deductions. TIAA Traditional Annuity: Contributions to the TIAA Traditional Annuity are used to purchase a contractual or guaranteed amount of future retirement benefits TIAA-CREF Variable Annuities: Flexibility to accumulate retirement benefits in any of the TIAA-CREF variable annuities TIAA-CREF Mutual Funds: A variety of mutual funds approved for use under the Plan. Each fund has its own investment objective and portfolio of securities.
Plan Carrier Continued Payments made to Plan retirees from the investments directed by the employee are administered by TIAA/CREF.
HRS Benefits Office Human Resource Services, Benefits Office, acts as the administrator of the Plan and is responsible for plan operation The Plan Administrator is responsible for enrolling participants, forwarding Plan contributions for each participant to the fund sponsors selected, and performing other duties required for operating the Plan.
HRS Benefits Office Continued Manages employee contribution and deduction matches based on age of participant < 35 YOA 5% employee + 5% employer >34 < 50 7.5% employee + 7.5% employer >49 YOA Additional 2.5% optional
HRS Benefits Office Continued HRS Administers Supplementation Plan Benefits determined by statutory criteria: Age 62 or greater At least 10 years service at WSU Benefit calculated on formula (years of service (max. 25) x 2 x average final compensation (2 year consecutive period) compared to payment employee would have received if had invested in 50% TIAA and 50% CREF. If less than formula amount then WSU pays the difference.
HRS and Benefits Office Continued 193 retirees currently receive supplementation payments Today s annual cost $671,773 Average payment per year $3,500 Median payment per year $2,714
WSU Employee Must hold an eligible faculty or administrative professional postion As a condition of employment must join plan prior to completion of two years of service in an eligible positon. Determines investment options and asset allocation Weighs risk versus reward
State of Washington WSU Board of Regents WSU Benefits Office TIAA-CREF Employee