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Employee Handbook Index

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Employee Handbook - Retirement programs

The University contributes to your retirement savings and gives you the opportunity to increase your retirement savings through the plans described below. Retirement program information and enrollment forms are provided at orientation.

Social Security

The University pays a set percentage (in relation to your income) to the federal Social Security system on your behalf. The University also makes a mandatory deduction from your pay for your share of Social Security contributions. The amount of the University (employer's) share and your (employee's) share of the total contribution is established by the Social Security Act. The amount paid to you upon retirement from Social Security is also determined by the Social Security Act.

University retirement plan

The University Board of Trustees designates employee retirement plans. Plans and plan provisions may be changed; the following is a brief summary of current plans. For more information, contact WMU Retirement Services.

Eligibility

Regular benefits-eligible full-time employees participate in the University-sponsored retirement plan.

Regular benefits-eligible employees in positions scheduled to work at least 20 hours per week and who were hired as benefits-eligible prior to July 1, 1996, will also participate in the plan as long as they remain in their current position or transfer to another benefits-eligible full-time position.

Note: "Benefits-eligible full-time" employees are those in positions with an FTE of at least .69 (see "Employment Status").

Current retirement plans

 

TIAA-CREF

New employees may enroll in the TIAA-CREF plan. This is a defined contribution plan, in that the contributions to the plan are a defined percentage of the employee's base wages. Currently, the University contributes an amount equal to 11% of the employee's base wages to the plan; the employee does not make contributions. This plan is also self-directed, in that the employee decides how the funds in the account are invested amongst several options. The income received at retirement is based on the value of the account.

Vesting varies by your FLSA status:

1. Exempt (salaried) employees have immediate vesting. The funds deposited into the employee's account belong to the employee without any delay or waiting period.
2. Non-exempt (hourly-paid) employees have a 5-year vesting period. The funds deposited into an employee's account belong to the University until the employee has completed five full years of plan participation. Time in layoff status does not count toward vesting, effective July 1, 2003. Should the employee separate from University employment prior to completing five full years of plan participation, the funds are returned to the University. After completing five full years of plan participation, the funds in the employee's account belong to the employee.

Enrollment

New employees must establish their account by completing the appropriate paperwork, as provided during Orientation. If an employee fails to complete the appropriate enrollment forms, participation may be waived.

 

MPSERS–The Michigan Public School Employees Retirement System

The University is not enrolling new employees in this defined-benefit plan. However, there are many employees hired in the past who actively participate and are acquainted with plan provisions. Questions can be directed to MPSERS at 1-800-381-5111 or WMU Retirement Services.

Tax-deferred savings program (optional)

Employees can add to their retirement savings by contributing to a 403(b) and 457(b) tax-deferred savings plan through payroll deduction. The funds you deposit into these retirement savings plans are deducted from your gross pay (before taxes are charged), accumulate tax-free, and are not taxed until they are received as income after retirement. These are self-directed plans, in that the employee decides how the funds in the account are invested amongst several options. The income received at retirement is based on the value of the account.

• Sledrunner Advisory Services administers this plan for University employees.
• Participation in a 403(b) or 457(b) tax-deferred savings plan requires a signed salary reduction agreement. Monies are withheld from pay based upon a computation of the allowable amount as governed by federal law. Enrollment information and forms are provided during Orientation and during open enrollment, which generally occurs once per year.
• Sledrunner Advisory Services' financial consultants are available to assist University employees with enrolling or to provide investment consulting.
• Questions can be directed to Sledrunner Advisory Services at 552-9233 or to WMU Retirement Services.

Retiring from WMU

At WMU, a "retiree" is not just an individual who has participated in a WMU retirement plan and has stopped working. A WMU retiree is an employee who has applied for retirement, has met certain eligibility criteria, and is therefore eligible for certain benefits and privileges.

Eligibility

To retire, you must be an employee at least 55 years of age and

If you were hired before July 1, 1996: You must have completed a minimum of ten years of full-time service as a regular employee.

If you were hired on or after July 1, 1996: You must have completed at least ten years of continuous full-time service as a regular employee immediately prior to retirement.

Effective July 1, 2003, time in layoff status does not count as service toward retirement.

Applying for retirement

Please contact Retirement Services approximately six to twelve months before your planned retirement date. A staff member will meet with you to discuss your retirement options and benefits and provide you other pertinent information.

Notification

Employees are to notify their supervisor and department head, in writing, of their exact retirement date, no later than one month prior to the actual day of retirement.

Completing final paperwork — Employees should arrange an appointment with the Retirement Services Office one month prior to their retirement date to complete retiree benefits paperwork.

Income

Your retirement income will come from either MPSERS or TIAA-CREF—whichever plan you participated in during your working years. Additionally, you may have participated in the University's optional Tax-Deferred Savings Program, which will provide additional income during your retirement. Social Security will also provide part of your retirement income.

Benefits and privileges

The Retirement Services Office will provide you details on the following benefits when you meet to discuss your retirement.

• Health insurance for you and any qualified dependents (coverage becomes supplemental to Medicare at age 65).
• Life insurance.
• Lump sum payment for any unused accrued annual leave and a portion of unused accrued sick leave (see "Annual Leave" and "Sick Leave").
• Permanent employee I.D. card/Bronco Card.
• Sindecuse Health Center services, including pharmacy.
• Unified Clinics' services.
• Internet access and email accounts.
• Parking permit.
• University Libraries facilities and services.
• Discounts at the WMU Bookstore.
• Discounts on tickets for some athletic and cultural events.
• Tuition Discount.
• Free membership for you and your spouse at the Student Recreation Center and the West Hills Athletic Club.

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