DIXIE STATE COLLEGE OF UTAH

POLICIES AND PROCEDURES MANUAL


Section: 3-Faculty

Policy No: 25

Approved: 10/27/95

Policy: RETIREMENT PROGRAMS

3-25 RETIREMENT PROGRAMS

Participation in a retirement system is a compulsory program to which all full-time, regular employees of the State, or its political subdivisions, must belong.

25.1 The Retirement Act, which provides that all full-time employees must belong to a retirement system, defines a full-time employee as one whose term of employment is expected to continue during a calendar or school year, and who performs covered service for one or more employers.

25.1.1 A "regular full time employee" means an employee whose employment is .75 FTE or more, and who receives benefits normally provided by the College.

25.1.2 Employees who were hired prior to July 1, 1995 will have their benefit program grandfathered into the plan and will continue to receive the same portion of medical, dental, disability, life insurance and retirement benefits that they received before this policy, until they make a position change or their benefits status changes.

25.1.3 An employee whose employment status is temporary in nature due to the nature or type of work to be performed, is not eligible to be enrolled in a retirement system.

25.1.3.1 If the term of employment exceeds six months, a regular full-time status shall be assumed, and the employee shall be enrolled in the system effective on the first day of the month in which the employee begins the seventh month of employment.

25.1.4 If an employee, previously terminated prior to enrollment, is again employed by the same employer within three months of termination, he/she shall be immediately enrolled in the retirement system, if the work constitutes full-time as defined above.

25.1.5 Working students, or the spouses of students, may be exempt, upon their request, from retirement participation by filling out the appropriate forms supplied by the College.

25.2 The Utah State Retirement System and the Teachers Insurance and Annuity Association/College Retirement Equities Fund retirement systems are the only two retirement plans to which the College contributes on behalf of the employees of the Utah System of Higher Education.

25.2.1 The Utah State Retirement System (USRS) is a defined benefit plan.

25.2.1.1 It is a qualified tax-deferred plan under Internal Revenue Code Section 401(a).

25.2.1.2 Grade 18 and below non-exempt employees who are hired in a position at least .75 FTE and receive the benefits normally provided by the College, are eligible for state retirement.

25.2.1.3 Exceptions to immediate enrollment in the retirement system exist if the employee is temporary (not probationary) or seasonal and the job is scheduled to be completed in six (6) months or less.

25.2.2 Teachers Insurance and Annuity Association/College Retirement Equities Fund (TIAA/CREF) Retirement System is a defined annuity contribution plan.

25.2.2.1 The contribution rate for TIAA/CREF is set by 49-3-207, Utah Code Annotated 1953.

25.2.2.2 The investment options within the system are determined by TIAA/CREF.

25.2.2.3 Faculty, administrative, other exempt employees, and non-exempt grade 19 and above, hired after July 1, 1993 will automatically be enrolled in the TIAA/CREF Retirement Fund unless they are currently enrolled with the Utah State Retirement System and request to remain with the State System.

25.2.2.4 Exempt employees working for the College before July 1, 1993 were given the option to remain in the Utah State Retirement System or to convert to TIAA/CREF.

25.2.2.5 The College is authorized to offer any or all of the investment options available from TIAA/CREF.

25.3 Social Security

25.3.1 All College employees are covered by Social Security.

25.3.2 This benefit is paid in addition to the retirement allowance received from the State Retirement System or TIAA/CREF.