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BENEFITS Table of Contents This booklet sets forth the provisions of the Tulane University Tax–Deferral Plan established by the Board of Administrators of the Tulane Educational Fund for employees of Tulane University, herein referred to as the University, and amended through July 1, 2002. This page also represents a summary plan description of the Tax–Deferral Plan. Employees of the University, which is an organization tax-exempt under Section 501(c)(3) of the Internal Revenue Code, may arrange with the University to divert a portion of their salary before taxes to purchase retirement benefits under this tax deferral arrangement authorized under Section 403(b) of the Internal Revenue Code and related Treasury Regulations. Contributions under this Plan are applied, at the direction of each participant, to annuities and/or to the purchase of shares or participation units in one or more investment fund options. The annuities and investment fund options that are available to participants under the Plan shall be referred to hereafter as "funding vehicles," and the companies sponsoring such funding vehicles shall be referred to as "fund sponsors."
All categories of employees are eligible to participate, except for student’s whose earnings are exempt from Social Security taxes under Section 3121(b)(10) of the Internal Revenue Code. Eligible employees may begin participation on the first day of the payroll period next following the date of employment.
To participate in this Plan, an eligible employee must enter into a written agreement with the University through which the employee agrees to a reduction in salary and the University agrees to make a contribution, in the amount of the reduction in salary, to the fund sponsor selected by the employee. The agreement shall be legally binding and irrevocable as to amounts payable while the agreement is in effect, but shall be terminable at any time with respect to amounts not yet payable. Appropriate fund sponsor enrollment forms must also be completed, as provided in Section VI. An individual who has become a participant in the Plan under this Section III shall continue to be a participant so long as any amount remains invested in a funding vehicle for his or her benefit under the Plan.
The plan’s normal retirement date is the June 30 coinciding with or next following the day on which age 65 is attained.
Contributions under this Plan shall be made by salary reduction, as described in Section III. Contributions may be made in any amount agreed to by the participant and the University, subject to the limitations of Sections 402(g), 414(v) and 415 of the Internal Revenue Code. Contributions shall be forwarded monthly to the fund sponsor of the funding vehicle(s) selected by a participant and may be allocated by the participant to one or more funding vehicles in whole percentages. Additional restrictions, and the ability to change the selection of a fund sponsor or funding vehicle, are explained in Section VII (Fund Sponsors and Funding Vehicles). During a paid leave of absence, contributions may be continued subject to the limitations of Sections 402(g), 414 (v) and 415 of the Internal Revenue Code. No Plan contributions shall be made for a year for any participant in excess of $40,000 (or such other limit as may apply to the participant under section 415(c) of the Internal Revenue Code), reduced by the amount of any contributions made for the participant (1) under the Tulane Faculty and Administrative Retirement Plan or Tulane Staff Retirement Plan, (2) by another tax?]exempt employer under a plan described in section 403(b) of the Internal Revenue Code or (3) by the participant, or by an employer controlled by the participant, under a plan described in section 401(a) or section 408(k) of the Internal Revenue Code. It shall be the responsibility of the participant to limit contributions under non?]Tulane plans so that they will not cause Plan contributions to exceed the foregoing limit. In the event any Plan contributions are determined by the Internal Revenue Service to be in excess of the foregoing limit, or are treated by the participant on an original or amended federal income tax return as taxable because they exceed the foregoing limit, and satisfactory evidence of these facts is provided to the Administrator, the Administrator may request the applicable fund sponsor to distribute such excess Plan contributions, adjusted for income, gains, losses ore expenses attributable to such excess Plan contributions, to the participant to the extent permitted by law. Alternatively, the Administrator may request the applicable fund sponsor to transfer the excess Plan contributions, and earnings attributable to them, to an after?]tax account so that the excess Plan contributions will be accounted for and reported as previously taxed contributions. Distributions from any such after?]tax account may be made at such time or times as may be permitted by applicable rules and regulations of the fund sponsor, before or after termination of employment, subject to Section XIII and the last paragraph of Section VIII. The Administrator may cause any contributions under this plan that exceed the limit on elective deferrals under section 402(g) of the Internal Revenue Code, adjusted for income, gain, losses or expenses attributable to such excess contributions, to be distributed to the participant to the extent permitted by law. In the event that contributions are treated by the participant on an original or amended federal income tax return as taxable because they exceed the foregoing limit, and the participant notifies the Administrator on or before the March 1 following the taxable year that all or a specified part of his or her contributions exceeds the limit imposed by section 402(g) of the Internal Revenue Code, the Administrator may make reasonable efforts to cause that excess deferral, adjusted for income, gain, losses or expenses attributable to that excess deferral, to be distributed to the participant no later that the April 15 following the calendar year in which the excess deferral was made. No distribution of an excess deferral shall be made during the taxable year of a participant in which the excess deferral was made unless the correcting distribution is made after the date on which the excess deferral is made and both the participant and the Administrator designate the distribution as a distribution of an excess deferral. All distributions of excess deferrals are subject to the terms of the funding vehicles in which such deferrals are invested, to the extent not inconsistent with the terms of this Plan. Any Participant who has attained age 50 before the close of the year shall be eligible to make “catch-up” contributions in accordance with, and subject to the limitations of, section 414(v) of the Internal Revenue Code. These catch-up contributions will not be taken into account in applying the limitations on contributions imposed by sections 402(g) and 415 of the Internal Revenue Code. In addition to the limits on contributions imposed by the Internal Revenue Code, the University may also limit the amount of contributions under this Plan, but only to the extent necessary to ensure that a participant receives sufficient pre-tax compensation to pay for withholding taxes and other required payroll deductions. Contributions for any month shall be paid to the fund sponsors as soon as such contributions can reasonably be segregated from the general assets of the University, but in any event within fifteen business days after the end of the month for which the compensation to which such contributions relate is paid. Subject to the terms of the funding vehicles, a participant may make a rollover contribution to a funding vehicle under the Plan or may make a plan-to-plan transfer from another employer’s retirement plan described in section 403(b) of the Internal Revenue Code, upon demonstration to the Administrator that the contribution or transfer satisfies the applicable provisions of the Internal Revenue Code.
To participate in this retirement plan, an eligible employee must complete and return to the University the appropriate enrollment form(s) for the fund sponsor and funding vehicle(s) selected. Participation in this plan will begin as described in Section III or, if later, on the first day of the next payroll period following receipt of the appropriate enrollment forms. The benefits provided by each funding vehicle and the provisions governing such benefits are described in the funding vehicles publications, which are listed in Appendix A. All benefits under this plan are fully and immediately vested, fully funded, and provided solely through the funding vehicles selected by participants; therefore, benefits are not subject to, nor covered by, federal plan termination insurance.
VII. FUND SPONSORS AND FUNDING VEHICLES Contributions shall be invested in one or more of the funding vehicles of the fund sponsors available to participants under this Plan. The fund sponsors are listed in Appendix A. Contributions shall be submitted by the University directly to the fund sponsor of the funding vehicle(s) selected by a participant, in accordance with procedures established by the University. A participant is only allowed to select one fund sponsor per salary reduction agreement, but may change the salary reduction agreement as frequently as once a month. However, as frequently as once a month, a participant may change his or her allocation of future contributions to funding vehicles provided by that sponsor and, at any time, subject to a funding vehicle's rules for transfers and minimum/maximum amount requirements, may specify that all or part of his or her accumulation in one funding vehicle be transferred to other funding vehicle(s) of the fund sponsor, except that accumulations in TIAA Retirement Annuities may only be transferred to CREF over a ten year period. Subject to a funding vehicle's rules for transfers and minimum/maximum amount requirements, a participant may specify that all or part of his or her accumulation in one funding vehicle be transferred to funding vehicle(s) of another fund sponsor except that accumulations in TIAA Retirement Annuities may be transferred to alternative funding vehicles only over a ten?]year period. Any transfer of funds between TIAA?]CREF and another fund sponsor will be executed only upon written consent of an authorized representative of the University. For a participant whose employment with the University has terminated, this Plan's transferability rules will continue to govern funds accumulated under the plan, unless such funds are transferred to another employer's retirement plan. This Plan is intended to constitute a plan described in section 404(c) of the Employee Retirement Income Security Act of 1974 and Department of Labor Regulations section 2550.404c?]1 with respect to contributions invested at the direction of the participant. No person, including the University, the Administrator or any fund sponsor, shall be liable for any loss or for any breach of fiduciary duty, which is the direct and necessary result of investment instructions given by a participant.
Subject to the funding sponsors' rules for withdrawal, a participant may receive benefits in a single sum* or under any of the income options set forth in the contracts between the fund sponsors and participants and/or the University (1) upon retirement at any age, (2) in the event the participant becomes totally disabled, or (3) effective May 16, 1996, after the participant attains age 59 1/2, whether or not he or she has retired. * Exception: A single sum payment is not available under TIAA Retirement Annuities. However, the University will approve a repurchase as described in Appendix B, or the ten-year payout option described in TIAA’s publications. Married participants should refer to Section XII (Spouse's Rights) and to Section XV (Application for Benefits) before electing a benefit option. In no event will the payment of benefits to any participant begin later than April 1 following the calendar year in which the participant attains age 70 1/2 or retires, whichever occurs later. However, for participants attaining age 70 1/2 between January 1, 1988 and December 31, 1995, inclusive, benefits were required to begin no later than April 1 following the calendar year in which the participant attained age 70 1/2, even if the participant had not retired. Benefits on or after the applicable April 1 will be made in at least the minimum amounts required by the Internal Revenue Code. IX. QUALIFIED MILITARY SERVICE Notwithstanding any provision of this plan to the contrary, contributions, benefits and service credit with respect to qualified military service will be provided in accordance with section 414(u) of the Internal Revenue Code.
X. LOANSSubject to the terms of the funding vehicles, and subject to the spousal consent requirement in Section XIII, loans are available to participants prior to the commencement of benefit payments under Section VIII. Loan repayments will be suspended under this plan as permitted under section 414(u)(4) of the Internal Revenue Code.
XI. WITHDRAWALSPrior to the commencement of benefits under Section VIII, and subject to the spousal consent requirement in Section XIII, a participant may withdraw from his or her accumulation as follows, subject to the funding vehicle's rules for withdrawals: A participant may withdraw all or a portion of his or her accumulation (1) in the event the participant becomes totally disabled, or (2) effective May 16, 1996, after the participant has attained age 59 1/2, whether or not the participant has retired. In addition, a participant may withdraw all or a portion of his or her contributions (but not any investment return credited after December 31, 1988 to those contributions) in the event of an immediate and heavy financial need arising from:
Such a withdrawal is available only after the participant has obtained all non?]hardship distributions and non?]taxable loans available under the Plan and all other plans maintained by the University and shall be limited to the amount necessary to meet the financial need (as determined by the Administrator in his or her sole discretion), including the amount of any federal, state or local taxes or penalties reasonably anticipated to result from the withdrawal. If a participant makes a withdrawal on account of a hardship need, he or she may not make contributions to the Plan or any other plan maintained by the University for the twelve months following the date of the withdrawal. In addition, the total amount of contributions made in the year in which the participant makes the withdrawal and the following year may not exceed the applicable limit under Section 402(g) of the Internal Revenue Code for that following year.
XII. DEATH BENEFITSIn the event a participant dies prior to commencement of retirement benefit payments, the full current value of the accumulation account(s) is then payable to the beneficiary or beneficiaries named by the participant, in a single sum or under one of the options set forth in the contracts between the funding vehicles and the participant and/or the University. For married participants the surviving spouse will be entitled to receive death benefits as set forth in Section XIII. Death benefits shall be paid in full within five years after the participant's death, or will be paid over the life of the beneficiary (or over a period not extending beyond the beneficiary's life expectancy) commencing no later than one year after the participant's death or such later time as may be permitted by the Internal Revenue Code.
Benefits maybe paid for married participants in the Plan only as described below, unless a written waiver of the benefit by the employee and written consent to the waiver by the spouse are filed with the fund sponsor(s) as described in Section XVI. This provision applies to Benefits Payable (Section VIII), Loans (Section X), Withdrawals (Section XI) and Death Benefits (Section XII). Under this Plan, a participant requesting a withdrawal or loan, or a participant terminating employment who requests a single sum benefit or a fixed number of installments, must furnish the spouse's written consent, as described below, together with an acknowledgment that the withdrawal, single sum benefit, or installments are in satisfaction of all rights to a retirement or death benefit as to the amount withdrawn or distributed, at the time application is made. At the participant’s death, the surviving spouse shall receive an annuity income that is at least 50% of the annuity income payable during the joint lives of the participant and his or her spouse. If the participant dies prior to the start of the annuity income, the surviving spouse shall receive a benefit that is at least 50% of the full current value of the participant's accumulation account(s), payable in a single sum or under one of the income options offered by the funding vehicle(s). Married participants and their spouses may waive the spouse's entitlement to receive retirement or death benefits, or consent to withdrawals, loans, single sum benefit distributions, or installments, only if a written waiver of the benefit signed by the participant and the spouse is filed with the fund sponsor during the applicable time period below and under the procedure described in Section XVI. For the post?]retirement survivor benefit (joint and survivor annuity) the waiver or consent may only be made during the 90 days prior to commencement of benefits (or the time of the withdrawal, loan, or single sum benefit). This waiver may also be revoked during the same period. It may not be revoked after the benefits commence (or the withdrawal, loan or single sum benefit payment is made). The period during which participants and their spouses may elect to waive the pre?]retirement survivor death benefit begins on the first day of the plan year in which the participant attains age 35 and continues until the earlier of the participant's death or the date the participant starts receiving income benefits. In the event that the participant dies before attaining age 35, i.e., before the participant has had the option to make a waiver, at least 50% of the full current value of the accumulation account(s) is payable automatically to the surviving spouse in a single sum or under one of the income options offered by the funding vehicle(s). If the participant terminates employment before age 35, the waiver provisions are available. The waiver may also be revoked during the same period.
The “plan year" is July 1 through June 30 of each calendar year. Plan records for each participant under this retirement plan are maintained on the calendar year basis. Each fund sponsor will send each participant a report summarizing the status of his or her accumulation account(s) at least as frequently as once per calendar year. Similar reports or illustrations may be obtained by a participant upon termination of employment or at any other time by writing directly to the fund sponsor.
The Vice President for Personnel Services, Tulane University, New Orleans, Louisiana 70118 (504) 865?]5280, is the Administrator of this Plan and is responsible for performing duties required for the operation of the Plan. The Administrator may designate in writing other persons to carry out duties under the Plan. Any interpretation of the Plan or determination with respect to the Plan by the Administrator or his or her delegate shall be final and conclusive on all persons in the absence of clear and convincing evidence that the Administrator or the delegate acted arbitrarily and capriciously.
Participants can initiate procedures for receipt of benefits (including retirement benefits, withdrawals or loans) by contacting the Personnel Services Department of the University or the appropriate fund sponsor. Benefits will be payable by the fund sponsor(s) upon receipt of a satisfactorily completed application for benefits and supporting documents, including any spousal consent required by Section XIII. The necessary forms will be provided to the participant or beneficiary by the fund sponsor.
If any employee or former employee, any surviving spouse of an employee or former employee, or any former spouse who is an alternate payee under a qualified domestic relations order is entitled to receive an eligible rollover distribution under this Plan, that individual may elect, at the time and in the manner prescribed by the Administrator, to have any portion of the distribution paid directly to an eligible retirement plan specified by the individual in a direct rollover. An "eligible rollover distribution" is any distribution of all or any portion of the balance to the credit of the individual, except that an eligible rollover distribution does not include (a) any distribution that is one in a series of substantially equal periodic payments (not less frequently than annually) made for the life (or life expectancy) of the individual or the joint lives (or joint life expectancies) of the individual and his or her designated beneficiary, or for a specified period of ten years or more, and (b) any distribution to the extent it is required under the last paragraph of Section VIII above. An "eligible retirement plan" is an individual retirement account described in section 408(a) of the Internal Revenue Code, an individual retirement annuity described in section 408(a) of the Internal Revenue Code, an individual retirement annuity described in section 408(b) of the Code, or an annuity contract described in section 403(b)(1) of the Code, that accepts the eligible rollover distribution. However, in the case of an eligible rollover distribution to a surviving spouse, an eligible retirement plan is an individual retirement account or individual retirement annuity.
XVIII. NO ASSIGNMENT OR ALIENATION Benefits under the Plan may not be assigned or alienated. However, to the extent provided by a qualified domestic relations order (within the meaning of section 414(p) of the Internal Revenue Code), and consistent with the terms of the funding vehicles, benefits may be paid to an alternate payee from a funding vehicle, or a new account may be established in favor of an alternate payee by the fund sponsor, even if the participant is not otherwise entitled to benefits at the time of such payment or establishment. The Administrator shall adopt procedures to determine the qualified status of domestic relations orders and to administer distributions under such orders.
XIX. REQUESTS FOR INFORMATION AND OTHER CLAIMS PROCEDURES Except as provided in the last two paragraphs of this Section XIX, requests for information, and claims or services of legal process concerning eligibility, participation, contributions, or other aspects of the operation of the Plan should be in writing and directed to the Administrator of this Plan. If a written request or claim is denied, the Administrator shall, within 90 days of the request or claim, provide a written denial to the participant. It will include the specific reasons for denial, the provisions of the Plan upon which the denial is based, a description of any material needed to complete the claim (if appropriate) and why it is necessary, and instructions on how to apply for a review of the claim. When the Administrator requires additional time to process a claim because of special circumstances, an extension may be obtained for up to an additional 90 days by notifying the participant that a decision on the claim will be delayed, what circumstances have caused the delay and when a decision can be expected. The Administrator will inform the participant of the delay within 90 days of the date the claim was submitted. A participant may request in writing a review of a denied claim and may review pertinent documents and submit issues and comments in writing to the Administrator. The Administrator shall provide in writing to the participant a decision upon such request for review of a denied claim within 60 days of receipt of the request. When special circumstances require an extension, the Administrator may obtain such extension for up to an additional 60 days by notifying the participant that the decision on the review of the denied claim will be delayed, why and when a decision can be expected. The Administrator will inform the participant of the delay within 60 days of the request for review. Requests for information concerning the funding vehicle contracts and their terms, conditions and interpretations thereof, claims thereunder, any requests for review of such claims, and service of legal process may be directed in writing to the appropriate fund sponsor at the address listed in Appendix A. If a written request is denied, the fund sponsor shall within 90 days of the request provide a written denial to the participant. It will include the specific reasons for denial, the provisions of the contracts on which the denial is based, and how to apply for a review of the denied claim. Where appropriate, it will also include a description of any material, which is needed to complete or perfect a claim and why such material is necessary. A participant may request in writing a review of a claim denied by the fund sponsor and may review pertinent documents and submit issues and comments in writing to the fund sponsor. The fund sponsor shall provide in writing to the participant a decision upon such request for review of a denied claim within 60 days of receipt of the request. If special circumstances require a delay on the initial decision on a claim or a review of a denied claim, the fund sponsor will notify the participant within 90 days of the date the claim was initially submitted or within 60 days of the date a review was requested. The notice will explain the reasons for the delay and when a decision can be expected.
While it is expected that this Plan will continue indefinitely, the Board of Administrators of the Tulane Educational Fund reserves the right to modify or discontinue the Plan at any time. The Board may also delegate any of its powers and duties with respect to the Plan, or amendments, to one or more officers or other employees of the University. Any such delegation shall be set forth in writing. Any discontinuance or modification of the Plan cannot adversely affect the benefits accrued by participants prior to the date of discontinuance or modification, except as permitted by law.
XXI. STATEMENT OF ERISA RIGHTS Participants in the Plan are entitled to certain rights and protection under the Employee Retirement Income Security Act of 1974 (ERISA). ERISA provides that all Plan participants shall be entitled to: (1) Examine, without charge, at the Plan Administrator's office, all Plan documents and copies of all documents filed by the Plan with the U.S. Department of Labor, such as detailed annual reports and Plan descriptions. (2) Obtain copies of all Plan documents and other Plan information upon written request to the Plan Administrator. The Administrator may make a reasonable charge for the copies. (3) Receive a summary of the Plan's annual ERISA report to the Department of Labor. The Plan Administrator is required by law to furnish each participant with a copy of this summary annual report. (4) Obtain a statement advising the participant of the amount of funds accumulated to provide benefits at normal retirement age if participation under the Plan stops now. Fund sponsors will send participants reports summarizing the status of their accumulation account(s) at least as frequently as once each year. ERISA sets forth the duties of the people who are responsible for the operation of the Plan. The people who operate this Plan have a duty to do so prudently and in the interest of the Plan participants and beneficiaries. No one, including the employer, may discharge or otherwise discriminate against participants in any way to prevent them from obtaining benefits to which they are entitled under the Plan or exercising their rights under ERISA. If an application for benefits under the Plan is denied in whole or in part, the participant or beneficiary must receive a written explanation of the reasons for the denial. Participants have the right to have the Plan Administrator review and reconsider denied claims on eligibility, participation, contributions or certain other aspects of the operation of the Plan and to have the fund sponsor review and reconsider denied claims for benefits from their funding vehicles. Under ERISA, participants may take steps to enforce these rights. For example, if a participant requests materials from the Plan and does not receive them within 30 days, he or she may file suit in a federal court. In such a case, the court may require the Plan Administrator to provide the materials and pay the participant up to $100 a day until he or she receives the materials, unless the materials were not sent due to reasons beyond the control of the Administrator. If a claim for benefits is denied or ignored, in whole or in part, the participant may file suit in a state or federal court. If the Plan Administrator’s responsibility to compute and remit contributions is not discharged according to the terms of this Plan or if a participant is discriminated against for asserting ERISA rights, he or she may seek assistance from the U.S. Department of Labor, or may file suit in a federal court. The court will decide who should pay court costs and legal fees. If the participant is successful, the court may order the person sued to pay these court costs and fees. If the participant loses, the court may order him or her to pay these costs and fees, for example, if it finds the claim is frivolous. Contact the Plan Administrator if you have any questions about this Plan. If a participant has any questions about this statement or about rights under ERISA he or she should contact the nearest Area Office of the U.S. LaborManagement Services Administration, Department of Labor.Employer Identification Number 72?]0423889 Plan Number 008 FUND SPONSOR: TIAA-CREF Publications: Your Retirement Annuity Funding Vehicle and Descriptive Objective: Note: There is no guarantee that any funding vehicle will attain its stated objective.
FUND SPONSOR: Fidelity Investments Publications: Fidelity Investments 403(b)(7) Plan Funding Vehicle and Descriptive Objective: Note: There is no guarantee that any funding vehicle will attain its stated objective.
Note: Applicable to TIAA Retirement Annuity Participants Only In the event a participant in this retirement plan terminates employment for a reasons other than retirement of disability and requests that TIAA repurchase his or her TIAA Retirement Annuity, the University will approve such repurchase if the participant meets the conditions stated in either (1) or (2) below. (1) The oldest contract was issued before January 1, 1992, the participant in not employed by or moving to another institution having TIAA-CREF retirement plan for which he or she will be eligible, none of the contracts are more than five years old or their total value is no more than $2000, and the participant is not receiving TIAA-CREF annuity income payments. (2) The oldest TIAA annuity was issued after January 1, 1992, the value of all regular TIAA annuities is less than $2,000 and the participant is not receiving or transferring money from TIAA over a 10-year period. Upon repurchase the entire amount accumulated in the Retirement Annuities will be payable by TIAA-CREF to the participant. Amounts paid to the participant upon repurchase shall be in full satisfaction of the participant’s and his or her spouse’s rights to retirement and/or death benefits attributable to such amounts repurchased.
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