Inside Iowa State
Sept. 12, 1997
Pilot program will allow employees to convert all TIAA/CREF assets to cash
by Diana Pounds
Up to 150 Iowa State employees who retire on or after Aug. 1, 1997, and before July 1, 1999, will have the opportunity to cash in or transfer all of their assets in the basic TIAA-CREF retirement plan.
In July the State Board of Regents approved a pilot retirement incentive program that allows eligible faculty, professional and scientific, and supervisory/merit staff to cash in CREF assets, in one lump sum if desired, and TIAA assets over a 10-year period, said Gary Wiggins, manager of the benefits office. Under ISU's traditional retirement program, retiring employees can convert only up to a third of their basic TIAA-CREF assets to cash.
ISU officials had requested approval of the program for three years with unlimited participation by retirees. However, the regents accepted their staff recommendation that the program be in effect for six months and limited to 150 participants. Participants in the pilot program must elect by Jan. 31, 1998, to retire from university service by June 30, 1999, or be approved for and enter into a phase retirement arrangement by June 30, 1999.
ISU staff will study the program's effectiveness through a participant survey.
The Human Resource Services-Benefits Office has developed a fact sheet on the new "TIAA-CREF Cashability" program with details on eligibility requirements, options and rules. The fact sheet is available at the Human Resource Services Web site at www.public.iastate.edu/~hrs_info/benefits/homepage.html.
TIAA-CREF representative Toni Block will explain the pilot retirement program and the various methods of cashing in or transferring TIAA-CREF assets during informational meetings - - at 7:30 p.m. Wednesday, Sept. 17, in Benton Auditorium, Scheman Building, and at 12:10 p.m. Thursday, Sept. 18, in the Memorial Union Sun Room.
Wiggins said those with questions about the new program also can call the benefits office, 4-7680, or send e-mail to: benefits@iastate.edu.
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