TIAA - Teachers Insurance Annuity Association
What is TIAA?
TIAA is a type of defined contribution plan -- 403(b). The amount contributed to the plan is known at the beginning, the retirement income is not known. The income will be determined by investment performance. The rules governing the operation of TIAA are controlled by Iowa State University with approval by the State Board of Regents. Changes are communicated by ISU directly to members.
How much can I contribute?
Contributions are based on your budgeted salary and deducted on a pre-tax basis.
1-5 Years of Service
Employee contributes: 3 1/3% of the first $4,800, and 5% of the remainder
ISU Contributes: 6 2/3% of the first $4,800, and 10% of the remainder
6+ Years of Service
Employee contributes: 5% of budgeted salary
ISU Contributes: 10% of budgeted salary
Contribution amounts are subject to change by Iowa State University with approval by the State Board of Regents.
When am I vested?
Definition of Vested: Ownership in the retirement funds deposited and earned in your account by ISU.
Employee Contributions: A member is always 100 percent vested in their own contributions.
ISU Contributions: Employees become vested after any of the following:
- completion of 3 years of continuous service
- age 65
- designated as a disabled employee
- decease while employed
- ISU discontinues the retirement plan
Can I save more money from my paycheck for retirement?
Any Iowa State University employee with a budgeted salary commitment is eligible to participate (casual hourly employees are not eligible). Even if your basic retirement plan is Iowa Public Employees Retirement System (IPERS), Federal Employees Retirement System, or any other substitute basic annuity plan (other than TIAA), you can participate in the voluntary retirement savings plan through TIAA or AIG Retirement Services.
What happens if I resign from ISU?
The member may roll funds over to another qualified plan or leave money in TIAA for later distribution subject to investment choices earnings or losses.
- Only member funds and the vested ISU contribution account balances will be portable.
- Members may receive a lump sum payment once employment ends.
Contact TIAA directly to discuss options for distribution.