Research Corporation of the University of Hawaiʻi

Research Corporation
of the University of Hawai‘i
3.560 RCUH Retirement Plans
I. Policy
It is the policy of the RCUH to provide a work-related income once an employee desires to retire from their job. The RCUH has established both non-contributory and contributory retirement plans for eligible employees and has established the necessary information to enroll.
II. Responsibilities
A. RCUH Employee
1. First enroll in a SRA account online with TIAA-CREF (Instructions to Enroll Online).
2. Enroll, make changes, or cancel in the Supplemental Retirement Annuity (SRA) at any time by completing the Agreement for Salary Reduction Form (Form B-6) and submit to the RCUH Human Resources Department by the established deadlines.
III. Applications
This policy applies to regular-status employees who are 50% FTE or more.
IV. Details of Policy
The policy provides eligible employees a non-contributory or Group Retirement Annuities program, in accordance with Section 401(a) of the Internal Revenue Code (IRC), and also allows a contributory or tax-sheltered annuities program, in accordance with Section 403(b) of the IRC and with the Teachers Insurance and Annuity Association and the College Retirement Equities Fund (TIAA-CREF). Click here to visit the TIAA-CREF website.
Click here to access My TIAA-CREF online tools and resources to assist with smart retirement-planning decisions.
A. Group Retirement Annuity (GRA)
1. Eligibility Requirements
An eligible regular employee will begin participation in this plan on the plan entry date following fulfillment of one (1) year of service at the RCUH. “Year of service” means a twelve (12)-month period (computation period) during which the eligible employee completes 1,000 or more hours of service, as defined in the plan document.
2. Computation Period
For the purpose of determining “year of service” for participation eligibility, the initial computation period is the twelve (12)-consecutive-month period beginning with the day the employee first performs an hour of service. Any subsequent

computation period will begin on the anniversary of the day the employee first performed an hour of service.
3. Enrollment
All eligible employees are required to begin participation in the GRA plan. An employee will automatically be enrolled upon eligibility with the defaulted options without benefit of the employee’s signature and the beneficiary designation shall be identified as the employee’s estate. The employer’s contributions shall be allocated to a money market account established by TIAA-CREF for the employee. However, an eligible employee may enroll manually and may directly contact TIAA- CREF to do so.
4. Re-employment
A former employee who is re-employed by the RCUH will be eligible to participate upon meeting the requirements stated in IV.A.1 Eligibility Requirements. A former employee who satisfied these requirements before termination of employment will be eligible to begin participation immediately after re-employment provided she/he is an eligible employee.
A former employee who has separated from service with the RCUH and who has elected a partial distribution of their retirement benefit from their RCUH GRA plan must have experienced a “bona fide retirement” (see Addendum to Policy 3.210 RCUH Rehiring RCUH Retirees for additional information).
5. Plan Contributions
Plan contributions in the amount of 10% of compensation will be made for eligible employees who have satisfied the eligibility requirements. “Compensation” shall mean base salary and is exclusive of bonuses or overtime.
a. When Contributions Are Made
Plan contributions will begin the first day of the pay period following the date on which the employee satisfies the eligibility requirements and becomes a participant. Plan contributions will be forwarded to the TIAA-CREF funding vehicle(s) in accordance with the procedures established by the RCUH. The RCUH plan contributions will be forwarded to the funding vehicles on a semi- monthly basis. Plan contributions made under this plan shall be held for the exclusive benefit of the participants and their beneficiaries and may not revert to RCUH except when plan contributions are made in error.
b. Allocation of Contributions
A participant may allocate plan contributions to the TIAA-CREF funding vehicle(s) in any whole-number percentages that equal 100%. A participant may change his/her allocation of future contributions to the funding vehicle(s) once the participant receives his/her certificates from TIAA-CREF.
c. Leave of Absence
During a paid leave of absence, plan contributions will continue to be made for a participant on the basis of compensation than being paid by the RCUH.

No plan contributions will be made during an unpaid leave of absence. 6. Funding Vehicles
Plan contributions are invested in one or more funding vehicles available to participants under the plan. The following are the fund sponsors and their funding vehicles:
a.
b.
Teachers Insurance and Annuity Association (TIAA)
i. TIAA General Account
ii. TIAA Real Estate Account
College Retirement Equities Fund (CREF)
i. Stock Account
ii. Money Market Account
iii. Bond Market Account
iv. Social Choice Account
v. Global Equities Account
vi. Growth Account
vii. Equity Index Account
viii. Inflation-Linked Bond Account
The RCUH’s current selection of fund sponsors and funding vehicles is not intended to limit future additions or deletions of fund sponsors and funding vehicles. Any additional accounts offered by a fund sponsor would automatically be made available to participants in accordance with the procedures established by the RCUH and the fund sponsor.
7. Vesting
Plan contributions shall be fully vested and nonforfeitable when such plan contributions are made, except when plan contributions are made in error.
8. Retirement Benefits
a.
A participant who has terminated employment may elect to receive retirement benefits under any of the forms of benefit, provided below:
i. Single Life Annuities;
ii. Joint and Survivor Annuities;
iii. Cash withdrawals (to the extent the funding vehicle permits and subject to the limitations in the “Cash Withdrawal” section);
iv. Fixed Period Annuities;
v. Retirement Transition Benefit;
vi. Repurchase, subject to the limitations outlined in the Plan;
vii. Small Sum Payments;
viii. Such other annuity and withdrawal options as provided under the funding vehicle contract.
The above retirement benefits are subject to the funding vehicles contract and limitations outlined in the plan.
9. Cash Withdrawals

A participant who has terminated employment and who has attained age 591⁄2 may receive a cash withdrawal of 100% of his/her accumulation account(s).
A participant who has terminated employment prior to age 591⁄2 may receive a cash withdrawal of 25% or $10,000, whichever is greater, of his/her accumulation account(s). The remaining accumulation of a Funding Vehicle is payable to a Participant only as an annuity income for at least the Participant’s lifetime or for a fixed-period payable between five and thirty (5 and 30) years.
B. Supplemental Retirement Annuity (SRA)
SRA is an annuity contract especially designed for use by employees who want to set aside tax-deferred retirement funds over and above amounts being accumulated under the RCUH basic retirement plan.
1. Eligibility Requirements
Regular employees at 50–100% FTE status may participate in a SRA upon hire. The salary reduction must be money earned by the employee after the date of the agreement.
The employee may be permitted to terminate the entire agreement or change election contributions at any time.
2. Plan Contributions and Withdrawals
a. Contributions under this plan are made in addition to any contributions that may be made under the RCUH GRA retirement plan.
b. The plan only allows for employee contributions. The minimum monthly premium that can be contributed to TIAA-CREF on the SRA contract is $25.00.
c. An amount within the limitations of Sections 403(b) and 415 of the Internal Revenue Service (IRS) Tax Code may be directed to an SRA contract. The IRS requires each participant to comply with specific requirements. An employee who wishes to enroll in the SRA plan shall contact the RCUH Human Resources Department for IRS requirements.
d. The participant may elect to receive benefits under any of the forms of benefits permitted by the relevant funding vehicles. However, distributions attributable to amounts accrued in an annuity contract after December 31, 1988, and amounts accrued to a mutual fund custodial account, regardless of date, may be paid only when a participant attains age 591⁄2, separates from service, dies, or becomes disabled. Participants may also withdraw their accumulation if they encounter hardship. Subject to the terms of the funding vehicles, loans are available to participants before the commencement of benefit payments.
B. Governance of Policy
The Board of Directors of the RCUH established the non-contributory plan as of July 1, 1985. This program may be modified or terminated at the discretion of the RCUH Board of Directors.
V. Procedures

A. Group Retirement Annuity (GRA)
Enrollment is automatic upon eligibility, with the defaulted options. However, eligible
employees may also manually enroll. Contact TIAA-CREF directly via their website for more information.
B. Supplemental Retirement Annuity (SRA)
1. First enroll in a SRA account online with TIAA-CREF (Instructions to Enroll Online).
2. Complete the Agreement for Salary Reduction Form (Form B-6).
3. Submit the form to the RCUH Human Resources Department by the established deadlines.
TIAA-CREF SRA certificates shall be issued in the name of the participating employee.
C. TIAA-CREF Online Withdrawal Process
1. Eligible participants may request and process withdrawals online at My TIAA- CREF.
2. Click here for the TIAA-CREF Guide to Online Withdrawals for step-by-step instructions and further information.
VI. Contact
RCUH Benefits: (808) 956-6979
[email protected]
VII. Relevant Documents
Agreement for Salary Reduction Form (Form B-6) Instructions to Enroll Online
Choosing Your Investments Booklet
TIAA-CREF Guide to Online Withdrawals
My TIAA-CREF Online Tools and Resources
TIAA-CREF Website
Addendum to Policy 3.210 RCUH Rehiring RCUH Retirees Retirement Advisor – Tool and Calculator
360 Degree Financial View – Budget
Online Tools: Other Financial Essential Webinars
Date Revised: 4/25/17