Beware of Financial Advisors

Outside individuals and companies are very eager to provide financial advice to Indiana University employees and retirees–even broadcasting e-mail solicitations and holding meetings in public campus facilities. These solicitations sometimes make it sound like the outside entity is familiar with the university’s retirement plans and/or is sponsored by the university. In fact, neither of these claims may be true.

• Employees who receive solicitations from outside entities regarding financial
  planning and retirement plan investments are advised of the following:
• The university has no knowledge of the outside entities’ credentials or business status.
• The university does not discuss the provisions of the university’s retirement plans with outside entities, except for TIAA-CREF and Fidelity Investments.
• The university is aware of misleading and inaccurate statements by several outside entities. For example, an outside “financial planner” recently stated that employees may transfer retirement funds to another investment company with the expectation of better returns. This is not accurate, as IU Retirement Plan funds cannot be transferred until after the employee terminates from the university and IU Tax Deferred Annuity funds cannot be withdrawn until the participant reaches age 59 1/2 or terminates from the university.
• The university does not warrant, guarantee, or otherwise certify the accuracy or outcome of transactions by outside entities.
• Services from an outside entity typically include fees and/or commission payments.

Benefits During a Leave of Absence

Employees contemplating a leave of absence may have questions regarding their benefits while away from work. For benefit plans that are based on employee payroll contributions, the employee has certain options and responsibilities. As long as the employee receives full or partial pay, benefit program deductions and coverage will continue. When on leave without pay (LWOP), the employee should contact a Human Resources office to discuss coverage and payment options. After-tax contributions may be required in order to continue coverage. Some things employees need to know:

• Employees are not required to continue benefit plan coverage during a LWOP. Written notice to a Human Resources office within 60 days of the commencement of a leave is required to cancel coverage.

• For employees who cancel Supplemental Life and/or Long Term Disability coverage, proof of good health is required to reinstate coverage after returning from leave.

• Continuation of medical and/or dental coverage during a LWOP is dependent upon payment of premiums. After 60 days on leave, billing for premiums due during the leave will begin. (For a leave of less than 60 days, contributions will be deducted from the first paycheck upon returning to work.)

• Employees must continue to make regular contributions to the Tax Saver Benefit (TSB) Plan in order to continue participation. Claims incurred during any period that the employee is not participating in the plan are not eligible for reimbursement.

• For Basic Life, employees are responsible for premiums after the first three months of a leave, except during a medical leave, in which case the university continues to provide coverage.

• Coverage of certain benefit plans may end after one year of leave, such as Supplemental Life and Long Term Disability. Upon termination of coverage, some benefits may have continuation or conversion options; but only if elected in writing within 30 days of termination.

Contact a Human Resources office or the University Human Resource Services Web site for further information.

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