Retirement Frequently Asked Questions

Retirement Frequently Asked Questions

What happens to my retirement plans if I stop working for CMU before I retire?
  • If you are in the 403(b) Basic retirement or supplemental tax deferral plans you are vested immediately and when you retire or leave CMU the monies belong to you. You can roll them over to another plan or leave them where they are. If you withdraw the monies, you will pay taxes at that time and there could be a 10% penalty if you do not meet the age requirements.
  • If you are in the MPSERS plan, then your service credit stays on file. If you are in the MIP plan through MPSERS those monies stay on file, too. If you are vested (10 years) of service, then at age 60 you are eligible for a monthly pension. If you are not vested then there will be no pension, but the monies are on file and you can always return to work at any institution that has MPSERS and work until you are vested. If you will never work long enough to acquire the time to be vested, you are eligible to draw the MIP monies in that you paid in yourself. If you withdraw those monies, you will pay tax and penalty on it. By taking these monies out, you take out years of service credit too. You are not able to get the monies that the University paid in to MPSERS. That stays with MPSERS.

I had a 403(b) basic retirement plan through TIAA-CREF with another employer. Can I just have CMU contribution directly into this same account?

  • No, TIAA-CREF requires you to start a new account at CMU. All accounts will be reflected on your quarterly statement.

I had a 403(b) basic retirement plan through Fidelity Investments with another employer. Can I just have CMU contribution directly into this same account?

  • It depends on the type of account you had with the other company. Contact Fidelity for more information.

Am I able to withdraw any money or take out a loan from the CMU University 403(b) Basic Retirement Plan while I am still actively working at CMU?

  • No, you cannot take out a loan from the University account. Only the voluntary 403b Tax Deferral plan with TIAA-Cref has loan privileges.
  • You generally can withdraw funds from your account with TIAA-Cref or Fidelity while still employed once you have reached age 59½.

What options do I have to withdraw money or take out a loan from the voluntary 403(b) tax deferral plan while actively working?

  • You generally can withdraw funds from your account with TIAA-Cref or Fidelity while still employed once you have reached age 59½.
  • You can take out a loan with the TIAA-Cref voluntary 403b tax deferral plan, Fidelity does not have that option available.

What options do I have to withdraw money or take out a loan from the voluntary 457(b) while actively working?

  • There is no loan provision with the 457(b) plan.
  • You cannot withdraw monies from the 457(b) account at any age while actively working.

How often can I change my deferral amounts from my check?

  • You can increase, decrease, stop or start your tax deferral deductions any time.

Can I have both a voluntary 403(b) and a voluntary 457(b) plan?

  • Yes, you can elect to defer to both accounts. You will have a maximum limit you can defer for each plan per calendar year.
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