Defined Contribution Retirement Plan

PLAN INFORMATION

Research Foundation of CUNY offers this plan as part of workplace benefits. Now is a great time to understand what is offered - think about taking advantage of any opportunities to save and invest for the future.

Learn what plans allow eligible employees to do.

What contribution options are available?

Employee contributions of 3% are mandatory for employees hired on or after 7/1/1994 and before 1/1/2000. Employees hired on or after 1/1/2000 AND have been employed 4 or more years must also contribute 3% (0% for all others).

Employees hired on or after January 1, 2009 (Tier IV) do not need to make a contribution and Grants Plus employees hired on or after January 1, 2008 also do not need to make a contribution until they have been employed for 4 years or more when they must make a contribution of 3%.

Employer Matching

For Tier I employees, Research Foundation of CUNY will contribute 11% of the first $16,500 of compensation and 14% of compensation above $16,500. For Tier II and III employees with less than 8 years of service, Research Foundation of CUNY will contribute 8% of compensation and 10% in years 8 and higher.

For Employees Tier IV employees with between 2 and 7 years of service, RF CUNY will contribute 8% of compensation, and 10% in years 8 or higher. For Grants Plus employees with between 2 and 7 years of service, RF CUNY will contribute 7%, and 9% in years 8 and higher.

Who can participate in this plan?

Employees who complete a year of service as described in the Summary Plan Description are eligible. You are not eligible if you are an independent contractor, if your contract of employment specifies that you are not covered by the Plan, if you are a student whose employment is incidental to your education program, or if you are holding for an F or J visa. You are not eligible if you are a member of CUNY Instructional Staff or Executive Compensation, eligible to participate in CUNY's retirement plan and are receiving payments from Research Foundation of CUNY in connection with a fellowship leave (sabbatical), summer salary, or supplemental pay.

When are new employees vested?

"Vesting" refers to your right, usually earned over time, to receive some retirement benefits regardless of whether or not you remain with your employer.

Your plan includes different vesting periods based upon the source of contribution. Please reference the information below for specifics.

Employee

Contributions to this account will be 100% vested immediately.

Employer

Contributions to this account will be 100% vested after 3 Year(s).

When can you take money out?

LOANS

Defined Contribution Retirement Plan does not offer a loan feature.

DISTRIBUTIONS

Lump-sum distribution

You can withdraw all or part of your account in a single cash payment, depending on your plan rules and the terms of your contracts.

Your right to a lump-sum distribution from your TIAA Traditional Account may be restricted to taking periodic payments under the terms of the contract. Please refer to your contract or certificate for full details or contact us at 800-842-2252.

Systematic withdrawals

If your plan allows, you can choose to receive regular income payments (minimum $100) on a semimonthly, monthly, quarterly, semiannual or annual basis. You can increase, decrease or suspend the payments at any time.

These withdrawals are not available from TIAA Traditional Account balances.

Small-sum distribution

When you leave your employer, you may be eligible to withdraw your retirement savings. Your plan may distribute your entire balance if the value does not exceed $2,000. Even if your plan doesn't allow cash distributions, you can withdraw your entire retirement savings if your TIAA Traditional Account value does not exceed $2,000 and your overall account balance is below a limit set by your employer's plan (either $1,000 or $5,000).

Lifetime retirement income

One-life annuity - provides income for as long as you live.
Two-life annuity - provides lifetime income for you and an annuity partner (your spouse or someone else you name) for as long as either of you live.
One- or two-life annuity with guaranteed period - guarantees income for up to 20 years, as long as the period you choose does not exceed your life expectancy. It ensures that income continues to go to your beneficiaries for the remainder of the guaranteed period if you (one-life annuity) or both you and your annuity partner (two-life annuity) die before the end of that period.

Other in service

If your plan permits, you can withdraw cash from your account while still employed by your institution, but you generally must meet an IRS-defined "triggering event" to qualify.

Single-sum death benefit

A set amount your beneficiary(ies) will receive from your retirement account if you die before taking income.

Fixed period

You can choose to receive income for a set period of two to 30 years, depending on the terms of our contract and your plan's rules (and not to exceed your life expectancy).

Payments stop at the end of the period, during which you will have received all your principal and earnings.

Interest only

You can receive the current interest earned on your TIAA Traditional Account in monthly payments. Your principal remains intact while you receive the interest.

These payments generally are available to individuals between ages 55 and 71 and must begin at least one year prior to reaching age 72.

Retirement transition benefit

In order to more easily transition into retirement, you may be able to withdraw up to 10%, in cash, of your lifetime annuity income. The amount you withdraw will reduce your lifetime annuity income accordingly.

TPA to cash

If you need some of your retirement savings in cash, you can withdraw your TIAA Traditional Account balance through a Transfer Payout Annuity (TPA) under the terms of the contract. A lump-sum payment, subject to a surrender fee, may be available depending on your plan rules and the terms of your contract.

For more information about the terms of your individual contract, contact your plan sponsor or financial advisor.

Forced distributions

A forced distribution allows your former employer to close retirement benefit accounts with a balance of less than $1,000 after you leave service. If your balance is higher than $1,000, you cannot be forced from the plan and you can leave your balance in it.

Additionally, retirement benefit accounts with a balance from $1,000 to $5,000 may be automatically rolled over to an IRA, unless you choose to take cash or make a different direct rollover.

Rollover

Prior to rolling over, consider your other options. You may also be able to leave money in your current plan or withdraw cash. Compare the differences in investment options, services, fees and expenses, withdrawal options, required minimum distributions, other plan features, and tax treatment.

If you have had an IRS-defined "triggering event," and your plan allows withdrawals, you can roll over your accumulations to another retirement plan that will accept them or to an Individual Retirement Account (IRA).

Direct rollovers - from one account to another - are nontaxable and not reported as income to the federal government. Your plan's rules specify when you are eligible for a distribution.

Minimum distribution option

Generally, you must begin taking minimum withdrawals from your account by April 1 following the year in which you turn age 72 or retire, whichever is later.

If you are married, you may be required to get spousal consent to receive any distribution option other than a qualified joint and survivor annuity.

This plan is designed to provide you with income throughout your retirement. Leaving money in your account may allow the funds to grow on a tax-deferred basis.

This plan allows you to receive a cash withdrawal. This may be restricted by the terms of your TIAA contracts. Taxes and penalties may apply.

What are the fees?

Understanding investment fees

Your financial well-being is TIAA's top priority and we are committed to helping you make informed decisions. Fees should be just one factor in your decision-making process since the lowest cost option may not be the best one for you.

Cost of plan services

Fees and expenses have always been part of a retirement savings plan–some fees are associated with the administration of the plan and may be covered by your employer, while others are paid by you based on the specific investments and services you choose. The following three categories of services are provided to your plan:

1. General record keeping and other plan services

Over the course of a year you pay for services like record keeping.

Many services are necessary for the day-to-day operation of your employer’s retirement plan. General administrative services include recordkeeping, legal, accounting, consulting, investment advisory and other plan administration services. Some of these expenses are fixed and other expenses may vary from year to year. These costs are allocated to each participant in a uniform way.

Other than your specific investment services fees, your plan has no additional record keeping or other plan services fees paid to TIAA.

2. Specific investment services

You pay only for what you use.

Each investment offered within the plan charges a fee for managing the investment and for associated services. But you pay only for the investments you actually use and in proportion to the amount of your investment. These fees are not deducted directly from your account; they are paid indirectly through the investment’s “expense ratio”. The specific expense ratio for each plan designated investment option is listed in your Quarterly Investment Update.

3. Personalized services

You can opt for extra features, like loan services.

Personalized services provide access to a number of plan features and investments that you pay for, only if you use them. The personalized services used most often are:

Qualified Domestic Relations Orders (QDRO)

No additional charge

Sales charges, purchase, withdrawal and redemption fees for certain investments

Certain charges may apply. For additional information, see Quarterly Investment Update.

In addition, for more information on fees and investments, refer to "Mutual Funds and In-Plan Annuities" via TIAA.org/performance which is a good source for additional plan and investment-related information.

More information about retirement plan fees and expenses is available at TIAA.org/fees.

EXPLORE OPTIONS