When an employer sets up a plan with TIAA-CREF, we create a document outlining all of the provisions of
the plan. Major areas include:
Eligibility
Employers can decide which employee classes/job categories will be eligible to participate, and/or
establish service requirements for joining the plan.
Contributions and Contribution Rates
In addition to contribution amounts and frequency schedules, the employer's plan dictates what type of
contributions can be made. These include:
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Employer contributions |
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Employee salary reduction (before tax) contributions |
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Employee salary deduction (after tax) contributions |
Participation
Employers can require eligible employees to participate or allow participation to be voluntary.
Vesting
Employers can have employer contributions vest immediately, or gradually as a condition of continuing
employment. Employee contributions must vest fully and immediately.
Asset Allocation
An institution can limit which investment accounts are available for RA and GRA plans, or specify broad
allocation rules (e.g., no more than 50 percent of premiums to equity accounts, a minimum of 25 percent
to the guaranteed account, etc.).
Cash Withdrawals
Institutions can restrict or limit how much can be taken as cash payments from all RA and GRA contracts.
SRA, GSRA and IRA contracts are fully cashable. In addition, in-service cash withdrawals or income can
be made available.
Transfers
An institution can limit or disallow fund transfers between carriers or to IRAs.
Loans
Employers can decide whether to allow employees to take loans from either the basic retirement plan or
the supplemental (voluntary) plan.
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