BENEFITS

457(b) Deferred Compensation Plan

Table of Contents

Purpose
Description
Eligibility
Eligible Salary from Which Deferrals Can Be Made
Enrollment in Plan
Contributions
Distributions
Beneficiary Designation
Vendor
Funds
Transfers From Other Plans
Hardship Withdrawals and Loans

I. PURPOSE

The purpose of the plan is to give a group of eligible employees an additional opportunity to defer compensation, above the limits for the University 403(b) retirement plan as defined by the Internal Revenue Code.

II. DESCRIPTION

• Participants defer compensation into investment funds they select.
• Contributions are exempt from federal and state income tax but FICA taxes are withheld.
• Funds are owned by Tulane University until distributed from the 457(b) plan.
• Funds are subject to the claims of the University's creditors in the event of the University's bankruptcy.
• No in-service distributions are permitted under Tulane's 457(b) plan.
• Participants select the method and timing of distribution, after termination (distribution must begin by age 701/2).
• Accounts are subject to federal and state income taxes when distributed.

III. ELIGIBILITY

Eligible participants are Tulane University employees who:

• Earned in the prior calendar year or is expected to earn in the current calendar year $150,000 or more as reported on the employee's Form W-2. (The $150,000 minimum will increase from time to time in the future as Internal Revenue Code limits increase.)
  

IV. ELIGIBLE SALARY FROM WHICH DEFERRALS CAN BE MADE

• Base Pay
• Summer School Pay
• Special Pay
• Incentive Pay (TUMG)  

V. ENROLLMENT IN PLAN

To participate in the Plan:

• Complete and return a Voluntary Salary Deferral Agreement (VSDA), and
• Complete and return a TIAA-CREF 457(b) Information Form, available from the Human Resources office.
• Salary deferrals may begin no earlier than the first day of the month following the execution of the VSDA.

VI. CONTRIBUTIONS

Employee deferred compensation up to the limit defined by the IRS. Contributions are exempt from federal and state income tax at the time of deferral. Participant contributions must be made through the University payroll system under a VSDA.

IRS Limits by Year:

• 2009 $16,500

There is a catch-up provision for participants within three years of normal retirement age: 65. The employee may contribute the lesser of:

• Twice the annual limit or
• The annual limit plus the total amount of underutilized contributions from prior years

VII. DISTRIBUTIONS

A participant may not receive any in-service distribution of his or her benefit. A participant must start distribution of benefits within sixty days following severance from employment, or may make an additional one-time written election to defer commencement of benefits to a specialized later date. If a participant fails to make an election during the sixty-day period following severance from employment, the participant will receive a lump sum distribution within ninety days following severance from employment.

Distribution Options:

• Lump sum or
• Installment payments (monthly, quarterly, semi-annual, or annual)
• Annuity Income

VIII. BENEFICIARY DESIGNATION

Plan will grant this right to the participant.

IX. VENDOR

TIAA-CREF

X. FUNDS

Available funds for investment will be the same as the Tulane University 403(b) plan.

XI. TRANSFERS FROM OTHER PLANS

Allowed.

XII. HARDSHIP WITHDRAWALS AND LOANS

Not allowed.

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