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CONTENTS
Scope
Policy Statement
Procedures
Sanctions

ADDITIONAL DETAILS
Web Address
Related Information

Effective:
Last Updated: June 1, 2009

Responsible University Office: University Human Resources

Responsible University Administrator: Senior Vice President and Chief Financial Officer

Policy Contact: University Human Resources

A. Scope

This policy applies to Support and Service Staff at 50 percent or more FTE. Under federal law, there is no mandatory retirement age.

B. Policy Statement

1. Social Security
   1. All employees are included under FICA (Social Security) and OASI (Old Age and Survivors Insurance).
2. PERF for Support and Service staff
   1. The Public Employees' Retirement Fund (PERF) consists of two distinct components: a pension benefit and an annuity savings account benefit. Indiana legislation controls these provisions. IU pays for the PERF retirement plan pension and annuity savings account benefits.
   2. Support and Service Staff appointed for at least 50% FTE will be enrolled in PERF at the time of appointment.

C. Procedures

1. Participants of PERF can begin their pension retirement income—without reductions for early retirement—at age 55 with 30 years of PERF service (time during which an employee is enrolled in PERF). Reduced PERF income is available as early as age 50 with 15 years of PERF service. The following table lists the age and service required to begin retirement income without reductions.

   Age at termination	Years of PERF service	Age at termination	Years of PERF service
   55	30	61	15
   56	29	62	15
   57	28	63	15
   58	27	64	15
   59	26	65	10
   60	15	66 and over	10

2. IU Retiree status
   1. A Retiree of Indiana University will be entitled to the following IU benefits, which are separate from retirement income benefits. See the Retirees Benefits page for more information.
      1. Life insurance (paid by IU)
      2. IU Tuition Benefit
      3. Medical and dental coverages
   2. In order to qualify as a Retiree, an IU employee must have Retiree status according to the following age and service requirements:

      Age at termination	Years of IU service	Age at termination	Years of IU service
      55	30	61	15
      56	28	62	15
      57	26	63	14
      58	24	64	12
      59	22	65 or over	10
      60	15

3. Classification changes
   1. If a Support and Service Staff employee changes position through the process of the Filling Positions policy to a position covered under the IU Retirement Plan, the employee will be enrolled in the IU Retirement Plan. The employee retains his or her account balance in the Annuity Savings Account, service credit, and vested pension benefits in the Public Employees’ Retirement Fund (PERF), but will not be eligible for ongoing contributions to PERF during his or her employment in the new position.
   2. If a Support and Service Staff employee’s position is reclassified through the process of the Classification policy or the employee changes position through the process of the Reduction in Force or Corrective Action policies to a position covered under the IU Retirement Plan, the employee has the choice of participating in the IU Retirement Plan or PERF during his or her employment in the new position. If the employee chooses the IU Retirement Plan, he or she will retain his or her account balance in the Annuity Savings Account, service credit, and vested pension benefits in PERF, but will not be eligible for ongoing contributions to PERF during his or her employment in the new position.

D. Sanctions

Managers, supervisors, and employees who violate this policy are subject to disciplinary action, up to and including termination.

E. Web Address for this Policy

hr.iu.edu/policies/appointed/retirement_nonexempt.html

F. Related Information

PERF