Enrolling Employee in Automated Benefits

6g.  Tax Deferred Annuity

Plan type = 46

Option Code: Always equal to 1 unless the employee chooses to WAIVE this plan and not participate. If so, W – Waive Coverage should be entered.

Percent of Earnings: Employee should specify on Personal Benefits Enrollment form what percentage of their annual earnings should be contributed to the TDA Savings Plan. This is required if enrolling in this plan.

Note: This is a change from HRIS to HRMS. TDA will no longer be a flat amount.

Under the section Allocation of Investment Funds, an Investment Option and Percentage need to be selected. This is required.

Note: The employee may elect multiple investment companies. The investment company percentage amounts must add up to 100 percent. For example, the employee may choose 25% of the investment invested in TIAA-CREF, 50% in Fidelity Investments and 25% in VALIC. This is a change from HRIS to HRMS.

If more than one investment company, click on plus to insert a new record.

Dependents/Beneficiaries: A beneficiary is required to be enrolled in the Tax Deferred Account. If the employee does not designate a primary beneficiary, do not attach a beneficiary to this plan. On the employee’s confirmation statement, it will state in an event a primary beneficiary is not designated, the benefit will be paid based on applicable state law.

Percentage for distribution will need to be entered for each beneficiary listed from the Enrollment form. The totals for all beneficiaries must equal 100 percent.

Contingent information for TDA will not be tracked in HRMS. Contingent information for TDA (if received from the employee) will be kept in their personal record.

 


 

6h.  Base Retirement

Plan type = 48

Benefits Administration processing will determine what savings retirement plan the employee should be enrolled in. The employee has one option if eligible. It will either be a PERF Saving’s plan or an IU Retirement Savings plan. If the employee is not eligible, you will not see an election entry data screen for plan type 48. No options are available.

Option Code: Only one option should be listed on the employees Personal Benefit Enrollment Form. Whether you enter that number or choose from the lookup, you should only see one option to choose from.

Under the section Allocation of Investment Funds, an Investment Option and Percentage need to be selected. This is required.

Again, the employee may elect multiple investment companies. The investment companies percentage amounts must add up to 100 percent. The investment companies for this plan type are limited to two investment options, TIAA-CREF and Fidelity. This is different than the TDA plan.

Beneficiaries: It is required to enter at least one beneficiary to be enrolled successfully in this plan. If the employee does not designate a primary beneficiary, do not attach a beneficiary to this plan. On the employee’s confirmation statement, it will state in an event a primary beneficiary is not designated, the benefit will be paid based on applicable state law.

Do not forget to enter the Percentage amount that beneficiary should receive. Percentage totals for all beneficiaries must equal 100 percent.

Contingent information for Base Retirement will not be tracked in HRMS. Contingent information for Base Retirement (if received from the employee) will be kept in their personal record.

Note: The next two Retirement Plans are only displayed based on the type of employee this is. Following is the explanation (there are no accompanying screen shots).

Supplemental Early Retirement

Plan type = 4Z

Note: All new participation is frozen for this plan. If an individual should be enrolled in this plan, contact the University Human Resource Services Office and they will enroll the individual in this plan.

This plan type will only display if the employee is eligible for the IU Retirement 12% plan. To enroll an employee in the IU Retirement 12% plan successfully, you must enroll the employee in plan type 4Z too.

Option Code: Only one option should be listed - either 1 or 2. Refer to the Personal Benefits Enrollment form or perform a  .

Investment Options: Choose the correct investment company(ies) and enter the percentage amount that should be contributed for that investment company.

Dependents/Beneficiaries: At least one individual will need to be listed as a beneficiary. If the employee does not designate a primary beneficiary, do not attach a beneficiary to this plan. On the employee’s confirmation statement, it will state in an event a primary beneficiary is not designated, the benefit will be paid based on applicable state law.

Enter percentage.

Contingent information for Supplemental Early Retirement will not be tracked in HRMS. Contingent information for Supplemental Early Retirement (if received from the employee) will be kept in their personal record.

PERF Pension

Plan type = 4Y

This plan type will only display if the employee is eligible for PERF. The employee must be enrolled in both PERF and PERF Pension to enroll them successfully.

Option Code: Option Code will always be 1.

There are no investment option choices for this plan.

Dependents/Beneficiaries: Not required, but if given the information make sure to attach the beneficiary here. Percentage for distribution will need to be entered for each beneficiary listed from the Enrollment form. The totals for all beneficiaries must equal 100 percent.

In the Requirements section, Elect Required is checked on. When Elect Required is checked on, the employee must be enrolled in this plan. If not enrolled, Benefits Administration will note the absence of elections for this plan type and error this employee. The employee will need to be enrolled in PERF Pension before a successful run through Benefits Administration for finalization can take place.

Contingent information for PERF Pension will not be tracked in HRMS. Contingent information for PERF Pension (if received from the employee) will be kept in their personal record.

 

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