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  Retirement Programs
  PERF Retirement Plan
  Ivy Tech Retirement Annuity (RA) Plan
  Leaving Employment with the College
  Receiving Your Benefits
  Forms of Benefit Payment
  Taxation of Benefits
  Additional Information
  Tax-Deferred Voluntary Retirement Plans
  Social Security
  Other Retiree Programs

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Full-Time Employee Handbook
Retirement Programs

Ivy Tech is pleased to provide you with a retirement benefit to supplement your retirement income. No one source of income by itself is likely to be sufficient for your retirement needs at retirement. The income from your Ivy Tech retirement plan will add to the income you will receive from Social Security, retirement plan income from other employers, and any other investments you may hold. The College’s tax-deferred 403(b) Retirement Annuity Plan (RA Plan) offers you many advantages in comparison to utilizing a typical savings account. With the RA Plan, the money contributed on your behalf by the College is not taxed until you begin making withdrawals at retirement. Additionally, the interest you earn on the money in your account grows without being taxed, so the total grows much quicker than it would without this advantage.



All full-time, benefits-eligible administrative staff and faculty members are eligible to participate in the RA Plan after two years of continuous benefits-eligible service. Positions classified E-3 or F-3 and above are immediately eligible to participate. In addition, employees who already have an active employer-funded 403(b) account with AUL or TIAA-CREF from past employment may be able to participate immediately.



The College contributes an amount equal to a certain percentage of your salary directly to AUL or TIAA-CREF. You may change the vendor you designate to receive future contributions annually during the open enrollment period.  Also, you can make contributions of your own by salary deduction, on a non-tax-deferred basis under one of the voluntary tax-deferred programs offered by the College. See Tax Deferred Voluntary Plans.



You direct how your contributions are invested on your application to AUL or TIAA-CREF. You can divide your contribution between investments within either company in any whole-number percentages. Once you are participating in the plan, you can change the division of your future contributions at any time by contacting AUL or TIAA-CREF directly. You will receive annual and quarterly statements showing your accumulation of benefits.



Employees may transfer their AUL or CREF funds from one vendor to the other at any time.  Transfers can be made as often as AUL or TIAA-CREF will allow. You may not transfer RA Plan funds to investment vehicles external to AUL or TIAA-CREF.

Leaving Employment with the College


If you leave employment with the College, you may retain your AUL and/or TIAA-CREF accounts. They will continue to earn interest and dividends. You also may continue to make personal contributions to your account. If you are later employed by an organization that offers AUL or TIAA-CREF, you may be eligible to participate with your new employer.

You may withdraw all or a portion of your RA Plan account balance when you leave employment with the College, including part-time and adjunct assignments. When you make such a withdrawal, the amount may be subject to a 10% tax penalty if the government considers it an early withdrawal of your benefits.

Receiving Your Benefits


Generally, you will begin to receive your benefit when you retire. You will pay income tax on the taxable portion of your benefit as you receive it. Because the purpose of the RA Plan is to save money for retirement, there are restrictions on when you can receive your benefits. Apart from certain qualifying circumstances, after terminating your employment with the College an early withdrawal of your money may be subject to a 10% tax in addition to your regular income tax.

Distribution for disability or financial hardship is not available on the RA Plan funds which have been contributed by Ivy Tech, nor the accumulated interest earned thereon as long as you remain employed by the College.

If you die before starting to receive benefits, your beneficiary is entitled to the full current value of your benefit accumulation. There are certain rules and restrictions about choosing a beneficiary other than a spouse.

You may also ask to have part of your total benefit paid in one lump sum. If you are married, your spouse will need to consent to this type of distribution.

Forms of Benefit Payment


You have several options for receiving your AUL and/or TIAA-CREF benefit payments. You may choose different methods of payment from each organization, AUL, TIAA and CREF. In addition, under certain circumstances, you may be required to begin the receipt of benefits.

Taxation of Benefits


Consult your tax advisor and AUL or TIAA-CREF about taxation of your benefit. The College does not presume to provide tax advice.

Additional Information


You may contact AUL directly at 800-249-6269 or online at and TIAA-CREF directly at 800-842-2776 or online at Additional information, including the Summary Plan Descriptions, can be found at this link:  Ivy Tech Employee Benefits.


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