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Retirement Procedures

Brigham Young University through TIAA-CREF and Deseret Mutual offers eligible personnel several options to assist them in preparing financially for retirement. In addition, those who qualify as BYU retirees retain campus privileges.

CAMPUS BENEFITS FOR RETIREES

Brigham Young University considers individuals eligible to retire and maintain their BYU campus benefits once they are age 55 or older with a minimum of 10 years of full-time eligible service. All qualified retirees maintain certain BYU campus benefits; these benefits include:

  • Lifetime BYU ID card
  • Use of the Richards Building and Smith Fieldhouse
  • Tuition (may be taxable)
  • Bookstore discount
  • Library privileges (as determined by the Library)
  • Parking authorization (as determined by Parking Services)
  • Remembrance Fund participation
  • Discounts for participating campus events (sporting and cultural events)

Personnel approved for BYU retirement benefits may chose any combination of gift and/or cash based on eligible years of service. Departments may use up to the amounts shown to host a retirement event. The amount provided for the retirement recognition award is based on the individual’s length of service as follows:

Years of Service Total Funds Available for Retiree Gift Total Funds Available for Department Event
10 - 14 $480 $120
15 - 19 $640 $160
20 - 24 $800 $200
25 - 29 $960 $240
30+ $1,120 $280

Special Considerations:

  • Retiring personnel must contact Benefits Services at 801-422-5723 to choose their retirement award.
  • Individuals who select the gift option, must be recognized in a public and meaningful way, such as a department staff meeting. The recognition need not be elaborate, but should honor the recipient’s length of service at BYU. A wide range of gift options are available.
  • Individuals who choose electronic gifts (such as computers, software, audio visuals, electronic storage devices, etc.) are to be cleared by their College/Division IT Department. A completed Retirement Gift form must be submitted to Benefits Services. This form is available through the department.
  • Individuals who select the cash option and are participating in the Deseret Mutual 401(K) Thrift Savings Plan and/or the TIAA-CREF Tax-Deferred 403(b) Annuity Plan, will have their regularly scheduled contribution amount deducted.
  • All cash is considered taxable income due to IRS regulations and taxes will be taken out through payroll deduction.
  • Individuals who do not wish to receive a gift, or accept the cash award, may donate the value of the cash award as a gift to their choice of department, college, library, or scholarship fund. After the cash award has gone through payroll, the retiree may give a personal check as a charitable contribution.
  • The retirement event is generally a function, on or off campus, which would typically include co-workers, students, and/or other BYU personnel who have worked directly with the retiree. Family members may participate in the function; however, the function is not to be an exclusive family event.
  • Individuals whose department sponsored function exceeds the total funds available for the retirement event may choose to use their gift fund amount to supplement the cost.
  • Departments must coordinate payments for both the gift and retirement event with Benefits Services.

TIAA-CREF SAVINGS PLANS

All university personnel with the exception of student employees are eligible to participate in retirement savings plans through TIAA-CREF. Eligibility begins upon the hire date and there is no minimum age requirement. TIAA-CREF offers two supplemental retirement plans, a 403(b) (before-tax), and a Roth IRA (after-tax). The University does not match contributions to TIAA-CREF. Contributions to these plans can be made through payroll deduction. Contact Benefits Services for more information.

DESERET MUTUAL AND BRIGHAM YOUNG UNIVERSITY RETIREMENT BENEFITS AND PLANS

Deseret Mutual and Brigham Young University offer eligible personnel two retirement plans; an employer sponsored defined benefit pension plan and an employer matched 401(K) plan. For personnel who qualify, a retiree welfare plan is provided which includes medical, dental, and life insurance options. The University strongly encourages eligible personnel to participate in a supplemental retirement program. Supplemental savings programs are provided to assist in the financial preparation for retirement. Participation in supplemental retirement savings plans is subject to IRS rules and regulations, contribution limits, and withdrawal guidelines. University personnel are welcome to contact Benefits Services at any time for a retirement income projection or for information regarding the benefits plans available at retirement.

UNIVERSITY PERSONNEL ELIGIBLE PRIOR TO APRIL 1, 2010

MASTER RETIREMENT PLAN

The University offers a defined benefit pension plan called the Deseret Mutual Master Retirement Plan (MRP). The plan is fully funded by Brigham Young University.  To be eligible for the Master Retirement Plan, personnel must be hired into an eligible classification, be at least 21 years of age, work 1000 hours within the first 12 months of employment or within any future calendar year, and accrue five years of service to be vested.

If 1000 hours are not worked within the first 12 months of employment, then time will be calculated based on a January-December calendar year. Vesting credit may include previous employment at a participating member organization of the Church of Jesus Christ of Latter-day Saints. Benefits Services notifies Deseret Mutual to start vesting credit.

At retirement, eligible personnel receive a benefit based on final average salary, benefit credit, (years of eligible service), and a multiplier.  The multiplier and minimum age of retirement are determined by eligibility date. Personnel are eligible to receive a benefit from the MRP without reduction at age 65 with at least 5 years of eligible service or a minimum age of 62 with at least 30 years of eligible service.

Multiplier = 1.5%
Minimum retirement age 55 (at a reduced benefit)

At retirement, payments are made monthly from the date of retirement and continue until the death of the retiree. Several two-life options are available at reduced amounts that guarantee lifetime income for a surviving spouse. Some of the payment options have guaranteed payment periods in addition to the life of the retiree and/or the surviving spouse. A lump sum may be paid at retirement in lieu of monthly payments if the present value of the benefit is less than $15,000.

University personnel should contact the Retirement Specialist in Benefits Services at 801-422-4486 at least four months prior to the planned retirement date to begin the retirement process. Retirement always takes place on the first day of the month following the month in which work was last performed.

DESERET MUTUAL 401(K) THRIFT SAVINGS PLAN

Eligible university personnel may participate in the Deseret Mutual Thrift Savings Plan, which offers both pre-tax and after-tax savings options. The plan offers two after-tax savings options: Roth 401(K) and after-tax 401(a). The University will match contributions ranging from 1% to 4% depending on the level of participation.

Employee Contribution Employer Match Total Contribution
1% 1% 2%
2% 2% 4%
3% 3% 6%
4% 3.5% 7.5%
5% or more 4% 9% or more

Several withdrawal options are available after age 59 ½, disability, retirement, or termination. Specific information may be obtained from Benefits Services or
Deseret Mutual. University personnel not eligible to participate in the Thrift Savings Plan include: student employees, MTC teachers, special administrative/staff assignments, and special academic appointments (post-doctoral fellow, research associate, research staff, adjunct faculty, retired faculty, visiting faculty, and continuing education faculty).

POST RETIREMENT DESERET MUTUAL BENEFITS

Upon retirement, various insurance benefit options may be available to eligible retirees and their eligible dependents. University personnel age 55 or older
with 10 years of eligible service who have been covered by any employer sponsored insurance plan for 12 consecutive months prior to retirement, are eligible for post retirement benefits which include medical, dental, vision care, Group Term Life (GTL) and Supplemental Group Term Life (SGTL) insurance.  The University pays a prorated amount of the medical and GTL premium based on years of service between 10 years and 20 years. At 20
years of eligible service, the University will pay its full share of the medical and GTL premium. Retirees pay the entire cost of the senior dental plan and vision care. The vision care plan is available to all retirees if enrolled prior to retirement or during open enrollment. GTL is available for the retiree in the amount of $12,000 and SGTL may also be available for the retiree and spouse.  24 Hour Accidental Death and Dismemberment (24 AD&D) is not available at retirement.

University personnel who retire on or after the age of 65 are required to enroll in Medicare Parts A and B.  Deseret Mutual provides a supplemental plan for eligible retirees.  Information about the medical and dental programs, vision care, and life insurances including eligibility for participation is available from BYU Benefits Services or Deseret Mutual.

UNIVERSITY PERSONNEL ELIGIBLE ON OR AFTER APRIL 1, 2010

MASTER RETIREMENT PLAN

The University offers a defined benefit pension plan called the Deseret Mutual Master Retirement Plan (MRP). The plan is fully funded by Brigham Young
University.  To be eligible for the Master Retirement Plan, personnel must be hired into an eligible classification, be at least 21 years of age, work 1000 hours within the first 12 months of employment or within any future calendar year, and accrue five years of service to be vested.

If 1000 hours are not worked within the first 12 months of employment, then time will be calculated based on a January-December calendar year. Vesting credit may include previous employment at a participating member organization of the Church of Jesus Christ of Latter-day Saints. Benefits Services notifies Deseret Mutual to start vesting credit.

At retirement, eligible personnel receive a benefit based on final average salary, benefit credit, (years of eligible service), and a multiplier.  The multiplier and minimum age of retirement are determined by eligibility date. Personnel are eligible to receive a benefit from the MRP without reduction at age 65 with at least 5 years of eligible service or a minimum age of 62 with at least 30 years of eligible service.

Multiplier = .75%

Minimum retirement age 60 (at a reduced benefit)

At retirement, payments are made monthly from the date of retirement and continue until the death of the retiree. Several two-life options are available at
reduced amounts that guarantee lifetime income for a surviving spouse. Some of the payment options have guaranteed payment periods in addition to the life of the retiree and/or the surviving spouse. A lump sum may be paid at retirement in lieu of monthly payments if the present value of the benefit is less than $15,000.

University personnel should contact the Retirement Specialist in Benefits Services at 801-422-4486 at least four months prior to the planned retirement date to begin the retirement process. Retirement always takes place on the first day of the month following the month in which work was last performed.

DESERET MUTUAL 401(K) THRIFT SAVINGS PLAN

Eligible university personnel may participate in the Deseret Mutual Thrift Savings Plan, which offers both pre-tax and after-tax savings options. The plan offers two after-tax savings options: Roth 401(K) and after-tax 401(a). The University will match contributions ranging from 1% to 6% depending on the level of participation.

Employee Contribution Employer Match Total Contribution
1% 1% 2%
2% 2% 4%
3% 3% 6%
4% 4% 8%
5% 5% 10%
6% or more 6% 12% or more

Several withdrawal options are available after age 59 ½, disability, retirement, or termination. Specific information may be obtained from Benefits Services or
Deseret Mutual. University personnel not eligible to participate in the Thrift Savings Plan include: student employees, MTC teachers, special administrative/staff assignments, and special academic appointments (post-doctoral fellow, research associate, research staff, adjunct faculty, retired faculty, visiting faculty, and continuing education faculty).

POST RETIREMENT DESERET MUTUAL BENEFITS

Upon retirement, various insurance benefit options may be available to eligible retirees and their eligible dependents. University personnel age 60 or older with10 years of eligible service who have been covered by any employer sponsored insurance plan for 12 consecutive months prior to retirement, are eligible for post retirement benefits which include medical, dental, vision care, and Supplemental Group Term Life (SGTL) insurance.  Prior to age 65, the University pays a prorated amount of the medical premium based on years of service between 10 years and 20 years.  At 20 years of eligible service, if the retiree is under the age of 65, the University will pay its full share of the medical premium.  At age 65, the retiree pays the full medical premium.  Retirees pay the entire cost of the senior dental plan and vision care.  The vision care plan is available to all retirees if enrolled prior to retirement or during open enrollment. GTL is no longer available at retirement; however SGTL may be available.  24 Hour Accidental Death and Dismemberment (24 AD&D) is not available at retirement.

THE UNIVERSITY RESERVES THE RIGHT TO MODIFY OR WITHDRAW THESE BENEFITS AT ITS SOLE DISCRETION.

APPLICABILITY

This policy applies to all full-time staff, administrative staff and faculty personnel.

RESPONSIBLE UNIVERSITY OFFICER:
CFO and Administrative VP Human Resource Services

RESPONSIBLE OFFICE:  Benefits Services

LAST REVISION: 2010

Updated by the HRS Web Team, Brigham Young University, Provo, UT 84602 - Copyright 2008. All Rights Reserved.