Purdue University Defined Contribution Retirement Plan

In addition to other applicable limitations stated in the plan, and notwithstanding any other provision of the Plan to the contrary, for Plan years beginning on or after January 1, 1996, the annual compensation of each employee taken into account under the plan shall not exceed the OBRA '93 annual compensation limit. The OBRA '93 annual compensation limit is $150,000, as adjusted by the Commissioner of the Internal Revenue Service for increases in the cost of living in accordance with section 401(a)(17)(B) of the Internal Revenue Code. The cost-of-living adjustment in effect for a calendar year applies to any period, not exceeding 12 months, over which compensation is determined (determination period) beginning in such calendar year. If a determination period consists of fewer than 12 months, the OBRA '93 annual compensation limit will be multiplied by a fraction, the numerator of which is the number of months in the determination period, and the denominator of which is 12.

For plan years beginning on or after January 1, 1996, any reference in this plan to the limitation under section 401(a)(17) of the Code shall mean the OBRA '93 annual compensation limit stated in this provision.

If compensation for any prior determination period is taken into account in determining an employee's benefits accruing in the current Plan Year, the compensation for that prior determination period is subject to the OBRA '93 annual compensation limit in effect for that prior determination period. For this purpose, for determination periods beginning before the first day of the first Plan Year beginning on or after January 1, 1996, the OBRA '93 annual compensation limit is $150,000.

Notwithstanding the above, employees who became participants in the Plan before the first day of the plan year beginning on or after January 1, 1996, will not be subject to the annual compensation limit.

This plan document sets forth the provisions of this Code Section 403(b) Plan. The Plan was restated and amended as of August, 2002. Plan Contributions are invested, at the direction of each Participant, in one or more of the Funding Vehicles available to Participants under the Plan. Plan Contributions shall be held for the exclusive benefit of Participants.

In addition to this document, a Custodial Agreement exists between the Institution and State Street Global Market, LLC.  This separate document should be reviewed in conjunction with this document.   All information pertaining to the Purdue University Defined Contribution Retirement Plan shall be subject to the terms and conditions of this Plan Document, as well as the terms and conditions set forth in the Custodial Agreement, and the administrative procedures established among TIAA-CREF, State Street Global Market, LLC, and the Institution in the Administrative Services and Record Keeping Agreement.

• Those of tenure track faculty rank and clinical faculty, from Date of Employment;
• Those of the senior management, management and professional staffs of the Institution, from Date of Employment;
• Those of the administrative and supervisory, professional assistant, continuing lecturers, and cooperative extension educators, after three Years of Continuous Service;
• Those of eligible rank employed in auxiliary, self-supporting and specially-supported projects, from Date of Employment in cases where such projects can provide the funds necessary to pay the Institution’s contribution, and in all other cases after three Years of Continuous Service.
• Employees hired into a position eligible to participate from affiliate organizations (Purdue Research Foundation, Purdue Alumni Association) shall participate immediately if they have retirement contracts in force from the affiliate organization.

1. A member of the administrative and supervisory, professional assistant staff, continuing lecturers, and cooperative extension educators who has fully vested, employer-funded contracts in force from an Institution of Higher Education shall participate from Date of Employment.
2. Employees classified as post-doctoral research associate or post-doctoral research assistant shall not be eligible to participate while so classified.
3. Full-time visiting/temporary (non-tenure track) faculty shall be eligible for participation only if they have fully vested, employer-funded contracts in force from an institution of higher education, or if hired for an overseas assignment from Date of Employment.  Other visiting/temporary faculty shall not be eligible to participate and time served in these visiting/temporary positions shall not count toward any required waiting period.
4. An employee of eligible rank classified as an Exchange Alien (J-1 visa) or Non-immigrant Student (F-1 visa) under the Mutual Education and Cultural Exchange Act of 1961 shall not be eligible to participate while so classified.

Termination of Participation. A Participant will continue to be eligible for the Plan until one of the following conditions occur:

• he or she ceases to be an Eligible Employee;
• the Plan is terminated.

Plan Contributions as a Percentage of Compensation

1. The Institution will contribute an amount equivalent to 15% of the Salary received during the summer by academic-year staff working with summer appointments.
2. Contributions will be made for the first complete pay period of a Participant’s eligibility and the last complete pay period for those terminating employment.  For those who qualify as official retirees as defined by Purdue University policy IV.3.1, the Institution will make Contributions based on the Participant’s final pay including any terminal vacation pay.
3. For employees who begin participation in the Plan on July 1, 1996 and thereafter, the Institution’s contribution for an Eligible Employee under this Section 4.1 whether made on the basis of Basic Budgeted Annual Salary alone, or Basic Budgeted Annual Salary in combination with other Salary, shall not take into account any Basic Budgeted Annual Salary and other Salary of the Eligible Employee separately or as aggregated which exceeds the Code Section 401(a)(17) Compensation limitation applicable to the Plan year.  
4. Participants in the Institution’s Voluntary Early Partial Retirement Plan as defined in Executive Memorandum C-32 will receive contributions to retirement based on their Basic Budgeted Annual Salary, unless they are on full unpaid leave.  These contributions will not exceed any limits imposed under Code Section 415 or 403(b).
5. During sabbatical leaves and faculty exchange leaves with full or part pay, the Institution will continue its contribution on the basis of the full Basic Budgeted Annual Salary.  During leaves of absence for reasons other than sabbatical, faculty exchange or disability (see item F below), the Institution will continue its contribution on the basis of the Basic Budgeted Salary equivalent to the individual’s FTE status if the leave is with one-half pay or more; if less than one-half pay, the Institution shall discontinue its contribution.   For this purpose, FTE means an administrative determination of the employee’s work status.
6. During disabilities in which all or part of the Participant’s salary is continued by the Institution (sick leave), the Institution shall continue its contribution based on Basic Budgeted Annual Salary.
7. After termination of salary payments (sick leave) and during the continuation of long term disability benefits (as defined by the Institution’s long term disability plan), the Institution shall continue its contribution.  If the Eligible Employee is not a Participant on the date of disability because of the three year waiting period required of certain staffs, the Institution’s contributions shall begin at the completion of the three year waiting period.
8. During the first six calendar months of disability, the Institutions’ contribution shall be related to the salary rate(s) that would have been effective had the Eligible Employee not become disabled.  After six calendar months of disability, the Institution’s contribution shall be related to the salary rate that was effective on the date of disability.  If an academic year or ten month Eligible Employee becomes disabled after the end of one employment year and before the beginning of the next, the Institution’s contribution after six months shall be related to the salary rate for the preceding year.

Plan Contributions will be forwarded to the TIAA-CREF Funding Vehicles on the pay date of the Participant.  Distribution of Plan Contributions to the Funding Vehicles maintained by the State Street Global Market, LLC as Custodian will also be forwarded to TIAA-CREF, and then transferred to the Funding Vehicles maintained by the State Street Global Market, LLC according to the terms of the Custodial Agreement and the Administrative Services and Record Keeping Agreement.

Maximum Plan Contributions. Notwithstanding anything contained in this Plan to the contrary, the total Annual Additions made for any Participant for any year will not exceed the amount permitted under section 415 of the Code. The limitations of Code Section 415 are hereby incorporated by reference.

For the purpose of calculating the limits of Code Section 415, compensation means a Participant's earned income, wages, salaries, and fees for professional services and other amounts received for personal services actually rendered in the course of employment with the employer maintaining the plan and excluding the following: (a) employer contributions to a plan of deferred compensation that are not includible in the employee's gross income for the taxable year in which contributed, or employer contributions under a simplified employee pension plan to the extent such contributions are deductible by the employee, or any distributions from a plan of deferred compensation; and (2) other amount that received special tax benefits, or contributions made by the employer (whether or not under a salary reduction agreement towards the purchase of an annuity described in Code Section 403(b) (whether or not the amounts are actually excludible from the gross income of the employee).  For years beginning after December 31, 1997, compensation shall include any elective deferral (as defined in Code §402(g)(3)) and any amount which is contributed or deferred by the Institution at the election of the Participant and which is not includible in the gross income of the Participant by reason of Code §125 or 457.

To the extent permitted by Code Section 415 and the regulations promulgated thereunder, if the Annual Additions exceed the Section 415 limitations, the excess amounts will be disposed of as follows: (a) any Participant Plan Contributions (plus any gain attributable to the excess), to the extent they would reduce the excess amount, will be returned to the Participant; and, to the extent necessary, (b) if, after the application of (a) an excess still exists, the excess will be held unallocated in a suspense account and will be applied to reduce Institution Plan Contributions in succeeding limitation years.

If the limitations are exceeded because the Participant is also participating in another Plan required to be aggregated with this Plan for Code Section 415, then the extent to which annual contributions under this Plan will be reduced, as compared with the extent to which annual benefits or contributions under any other plans will be reduced, will be determined by the Institution in a manner as to maximize the aggregate benefits payable to the Participant from all plans. If the reduction is under this Plan, the Institution will advise affected Participants of any additional limitation on their annual contributions required by this paragraph.

The amount of Plan Contributions will also be subject to the limitations of Code Section 403(b). The limitations of Code Section 403(b) are hereby incorporated by reference.

            A.     Teachers Insurance and Annuity Association (TIAA)

 TIAA Retirement Annuity (RA):

 Traditional Annuity

 Real Estate Account 

            B.     College Retirement Equities Fund (CREF)

                     CREF Retirement Unit-Annuity (RA):

• Stock Account
• Money Market Account
• Bond Market Account
• Social Choice Account
• Global Equities Account
• Growth Account
• Equity Index Account
• Inflation-Linked Bond Account

  C.    TIAA-CREF Institutional Mutual Funds

• TIAA-CREF Large Cap Value
• TIAA-CREF Growth and Income
• TIAA-CREF Mid-Cap Growth
• TIAA-CREF Mid-Cap Value
• TIAA-CREF Small Cap Equity
• TIAA-CREF International Equity
• TIAA-CREF Real Estate Securities
• TIAA-CREF S&P 500
• TIAA-CREF Social Choice Equity

  D.    State Street Bank and Trust brokerage service through TIAA-CREF

(State Street Global Market, LLC acts as Custodian for separate Accounts (Funding Vehicle’s) established for the benefit of Participants, which Accounts are invested in Designated Investment Companies as that term is defined in the Custodial Agreement.  Investment in the Designated Investment Companies through the employee Accounts is governed by the terms and provisions of the Custodial Agreement, as well as the Administrative Services and Record Keeping Agreement.)

The Institution's current selection of Fund Sponsors and Funding Vehicles isn't intended to limit future additions or deletions of Fund Sponsors and Funding Vehicles. Any additional accounts offered by a Fund Sponsor will automatically be made available to Participants in accordance with the procedures established by the Institution and the Fund Sponsor.

Fund Transfers. Subject to a Funding Vehicle's rules for transfers and in accordance with the provisions of the Code for maintaining the tax deferral of the Accumulation Account(s), a Participant may transfer funds accumulated under the Plan among the Plan's approved Funding Vehicles to the extent permitted by the Funding Vehicles.

For a Participant who has terminated employment with the Institution, this Plan's transfer rules will continue to govern vested amounts accumulated under the Plan.

Forms of Benefit. The forms of benefit are the benefit forms offered by the Funding Vehicles available under this Plan. These forms are equally available to all Participants choosing the Funding Vehicle. The forms of benefit available under this Plan include:

• Single life annuities as provided under the Funding Vehicle contract.
• Joint and survivor annuities as provided under the Funding Vehicle contract.
• Cash withdrawals (to the extent the Funding Vehicle permits) and subject to the limitations in the "Cash Withdrawals" section of this Article.
• Fixed period annuities, to the extent the Funding Vehicle permits.
• Retirement Transition Benefit.
• Repurchase, subject to the limitations in the "Repurchase" section of this Article.
• Such other annuity and withdrawal options as provided under the Funding Vehicle Contract.

Cash Withdrawals. A Participant may receive a cash withdrawal as permitted by the Funding Vehicle.

Cash withdrawals may not be received while the Participant is employed by the Institution, except as allowed by making an Advance Retirement Declaration or by participating in the Voluntary Early Partial Retirement Program, as outlined in Purdue University Executive Memorandum C-32.

Minimum Distribution Requirements for Post-’86 Account Balance. The requirements of this section shall apply to any distribution of a Participant's vested Accumulation Account(s) with respect to accumulations accruing after December 31, 1986, which includes earnings after December 31, 1986 on contributions made before January 1, 1987 in addition to the contributions made after December 31, 1986 and earnings thereon, and for the Participant’s entire vested Accumulation Account if the Fund Sponsor does not keep records that enable it to identify the pre-January 1, 1987 account balance and subsequent changes and will  take precedence over any inconsistent provisions of this Plan . Distributions in all cases will be made in accordance with Code Section 401(a)(9) and the regulations promulgated thereunder, including the minimum distribution incidental benefit requirement of Section 1.401(a)(9)-2 of the proposed regulations.

With respect to distributions under the Plan made for calendar years beginning on or after January 1, 2001, the Plan will apply the minimum distribution requirements of Section 401(a)(9) of the Internal Revenue Code in accordance with the regulations under Section 401(a)(9) that were proposed on January 17, 2001, notwithstanding any provisions of the Plan to the contrary.  This amendment shall continue in effect until the end of the last calendar year beginning before the effective date of final regulations under Section 401(a)(9) or such other date as may be specified in guidance published by the Internal Revenue Service.

1. Limits on Settlement Options. Distributions may only be made over one of the following periods (or a combination thereof):
   1. the life of the Participant;
   2. the life of the Participant and a designated Beneficiary(ies);
   3. a period certain not extending beyond the life expectancy of the Participant; or
   4. a period certain not extending beyond the joint and last survivor life expectancy of the Participant and designated Beneficiary(ies).
2. Required Beginning Date. The entire interest of a Participant must be distributed or begin to be distributed no later than the Participant's Required Beginning Date.  The Required Beginning Date of a Participant is April 1 following the calendar year in which the Participant attains age 70-1/2 or, if later, April 1 following the calendar year that the Participant retires.
   1. Any Participant attaining age 70½ in years after 1995 may elect by April 1 of the calendar year following the year in which the Participant attained age 70½ (or by December 31, 1997 in the case of a Participant attaining age 70½ in 1996) to defer distributions until the calendar year following the calendar year in which the Participant retires. If no such election is made, the Participant will begin receiving distributions by the April 1 of the calendar year in which the Participant attained age 70½ (or December 31, 1997 in the case of a Participant attaining age 70½ in 1996).
   2. Any Participant attaining Age 70½ in years prior to 1997 may elect to stop distributions and recommence by the April 1 of the calendar year in which the Participant retires.  There is no new annuity starting date upon recommencement.
   3. The preretirement age 70½ distribution date is eliminated with respect to Participants who reach age 70½ after December 31, 1998.  The preretirement age 70½ distribution option is an optional distribution form of benefit under which benefits payable in a particular distribution form (including any modification that may be elected after benefit commencement) commence at a time during the period that begins on or after January 1, of the calendar year in which a Participant attains age 70½ and ends April 1 of the immediately following calendar year.
3. Death Distribution Provisions. Upon the death of the Participant, the following distribution provisions will take effect:
   1. If the Participant dies after distribution of his or her vested Accumulation Account has begun, the remaining portion of the vested Accumulation Account(s) will continue to be distributed at least as rapidly as under the method of distribution being used before the Participant's death;
   2. If the Participant dies before distribution of his or her vested Accumulation Account(s) begins, distribution of the Participant's entire vested Accumulation Account(s) shall be completed by December 31 of the calendar year containing the fifth anniversary of the Participant's death xcept where an election is made to receive distributions in accordance with (1) or (2) below:
   3. If any portion of the Participant's vested Accumulation Account is payable to a designated Beneficiary(ies), distributions may be made over a period certain not greater than the life expectancy of the designated Beneficiary(ies) commencing by December 31 of the calendar year immediately following the calendar year in which the Participant died;
   4. If the designated Beneficiary(ies) is the Participant's surviving spouse, the date distributions are required to begin in accordance with (1) above must not be earlier than the later of
      1. December 31 of the calendar year immediately following the calendar year in which the Participant died and
      2. December 31 of the calendar year in which the Participant would have attained age 70 1/2.

If the Participant has not made an election pursuant to this section by the time of his or her death, the Participant's designated Beneficiary(ies) must elect the method of distribution no later than the earlier of (1) December 31 of the calendar year in which distributions would be required to begin under this section, or (2) December 31 of the calendar year that contains the fifth anniversary of the date of death of the Participant. If the Participant has no designated Beneficiary(ies), or if the designated Beneficiary(ies) does not elect a method of distribution, distribution of the Participant's entire vested Accumulation Account(s) must be completed by December 31 of the calendar year containing the fifth anniversary of the Participant's death.

Repurchase. A Participant's accumulations in TIAA-CREF Retirement Annuities may be received in a single sum through "repurchase" if certain conditions are met. If a Participant in this Plan terminates employment with the Institution and requests that TIAA-CREF repurchase his or her Retirement Annuities, the Institution will approve such repurchase if, at the time of the request, all of the following conditions apply:

1. The total TIAA Traditional Annuity accumulation in all Retirement Annuities owned by the Participant is not over $2,000.
2. The Participant does not have a TIAA Transfer Payout Annuity (TPA) in effect.

Amounts paid to the Participant on repurchase will be in full satisfaction of the Participant's and his or her spouse's rights to retirement or survivor benefits from TIAA-CREF attributable to such amounts.

Direct Rollovers. This section applies to distributions made on or after January 1, 1993. Notwithstanding any provision of the Plan to the contrary that would otherwise limit a distributee's election under this section, a distributee may elect, at the time and in the manner prescribed by the plan administrator, to have any portion of an eligible rollover distribution paid directly to an eligible retirement plan specified by the distributee in a direct rollover.

 For this section, the following definitions apply:

1. Eligible rollover distribution: An eligible rollover distribution is any distribution of all or any portion of the balance to the credit of the distributee, except that an eligible rollover distribution does not include: any distribution that is one of a series of substantially equal periodic payments (not less frequently than annually) made for the life (or life expectancy) of the distributee or the joint lives (or joint life expectancies) of the distributee and the distributee's designated beneficiary, or for a specified period of ten years or more; any distribution to the extent such distribution is required under Code Section 401(a)(9); and the portion of any distribution that is not includable in gross income (determined without regard to the exclusion for net unrealized appreciation with respect to employer securities); and, for any distributions after 12/31/99, any hardship distributions described in Code Section 401(k)(2)(b)(i)(iv).
2. Eligible retirement plan: An eligible retirement plan is an individual retirement account described in Code Section 408(a), an individual retirement annuity described in section 408(b) of the Code, or a tax-sheltered annuity plan described in Code Section 403(b), that accepts the distributee's eligible rollover distribution. However, in the case of an eligible rollover distribution to the surviving spouse, an eligible retirement plan is an individual retirement account or individual retirement annuity.
3. Distributee: A distributee includes a participant or former participant. In addition, the participant or former participant’s surviving spouse and the participant or former participant’s spouse or former spouse who is the alternate payee under a qualified domestic relations order, as defined in section 414(p) of the Code, are distributees with regard to the interest of the spouse or former spouse.
4. Direct rollover: A direct rollover is a payment by the Plan to the eligible retirement plan specified by the distributee.

1. No amendment will be made which will operate to recapture for the Institution any contributions previously made under this Plan. However, Plan Contributions made based on a mistake of fact may be returned to the Institution within one year of the date on which the Plan Contribution was made.
2. No amendment will deprive, take away, or alter any then accrued right of any Participant insofar as Plan Contributions are concerned.

Plan Amendment No. 1, Minimum Distribution

Plan Amendment No. 2, Addition of Mutual Funds