Retirement

The University provides retirement plans in addition to coverage under Social Security for individuals in benefit-eligible positions.

Continuing Lecturer, Executive, Faculty, Fire/Police Management, Management and Professional Staff 

Purdue's Standard Retirement and Savings Plans (PSRS) program includes two components, an Exempt 403(b) Defined Contribution Plan and a Mandatory 401(a) Plan. Fidelity partners with the University to administer these plans.

The Defined Contribution Plan directs retirement savings to each faculty or staff member's own individual account. Accumulations grow as University and employee contributions are credited. Investment earnings are also added to the money in the account.

In 2009, the Retirement Plan Review Task Force made recommendations that shaped the current program administered by Fidelity Investments. A University Retirement Plan Committee meets regularly to review how the components of the Defined Contribution Plan are performing in relation to goals established for the program.

Prior to January 1, 2011, Purdue's Defined Contribution Plan was administered by TIAA.

• 403(b) Base Exempt Defined Contribution:
  Benefits-eligible tenure-track faculty, instructors, and senior management/professional staff members are eligible for University-funded retirement contributions upon date of employment. The University provides a contribution equal to 10 percent of budgeted annual pay plus 10 percent of any summer salary for academic-year faculty and staff to the Purdue University 403(b) Defined Contribution Retirement plan. 
  
  Benefits-eligible administrative and professional staff, continuing lecturers, and cooperative extension educators begin participation after three years of continuous service. However, staff who have fully vested, employer-funded contracts still in force from a higher education institution (including any from previous employment at Purdue), may be eligible for contributions to be made immediately. If you feel you may be eligible, complete the waiver form or contact Staff Benefits at 49-42222. Upon completion of the three-year waiting period, the University provides a 10 percent contribution to the Purdue University 403(b) Defined Contribution Retirement plan.
  
  
• 401(a) Mandatory:
  Eligible faculty and staff members as described above also participate in the Purdue University 401(a) Mandatory Plan. This plan requires a mandatory employee contribution of 4 percent, which begins upon hire.
• Voluntary Retirement Savings Plans: All faculty and staff who receive a regular paycheck are eligible to contribute voluntarily to the Purdue University 403(b) Voluntary Retirement Savings Plan and/or the Purdue University 457(b) Deferred Compensation Plan. Contributions can be made to these plans by designating a percent of gross pay from 1 percent to 85 percent. Contributions to the plans can be started, increased or decreased at any time at https://nb.fidelity.com/public/nb/purdue/home.

Note: All contributions must comply with annual IRS retirement limits.

Please visit the website for more information.

Service, Support and Grandfathered Operations/Technical hired after 9/8/2013

Purdue's Matching Retirement and Savings Plans (PMRS) for non-exempt employees hired on or after September 9, 2013 include these components: a 403(b) Defined Contribution Plan with a base contribution from the University, in addition to a matching contribution if the employee participates in saving for retirement through the voluntary savings plan. Fidelity partners with the University to administer these plans. Newly hired non-exempt police and firefighters participate in PERF and are not impacted by the September 2013 change for other non-exempt staff.

 Retirement Plan Eligibility and Contribution Rates for Employees Paid Biweekly

• 403(b) Non-Exempt Defined Contribution: Benefits-eligible clerical, service and operations/technical staff members are eligible for University-funded retirement contributions upon date of employment.
  
  
  • Base Contribution: The University provides a contribution equal to 4 percent of earnings each pay period to the Purdue University 403(b) Non-Exempt Defined Contribution Retirement Plan.
  • Matching Contribution: The University matches employee pre-tax contributions to the Voluntary Savings Plan 403(b) each pay period, up to 4 percent of earnings.
    
    
• Voluntary Retirement Savings Plans
  • 403(b): Eligible staff members as described above may also participate in the Purdue University 403(b) Voluntary Retirement Savings Plan. Staff will be automatically enrolled in this plan at a contribution rate of 5 percent of earnings. Staff members hired 9/9/2013 and after will begin participation in this plan 30 days after hire. Employees may change their contribution amount at any time
  • 457(b): All staff who receive a regular paycheck are also eligible to contribute voluntarily to the Purdue University 457(b) Deferred Compensation Plan. These contributions are not matched.

Note: All contributions must comply with annual IRS retirement limits.

Visit the website for more information.

Police Officer and Firefighter

The Police Officer and Firefighter Retirement Plan is outlined and defined through this website. Police Officers and Firefighter Pension Summary is also located online.

Federal Civil Service Retirement

Employees who hold federal cooperative appointments from the administrator of the Federal Extension Service, United States Department of Agriculture, participate in the Civil Service retirement program. For those who qualify for these benefits, the Federal Extension Service pays 8.25 percent of the total base salary, and the employee pays 7 percent of his or her total base salary. Contributions are paid to the Civil Service Commission. For more information regarding this program, contact the office of the director of the Cooperative Extension Service.

Retirement Overview

For more information on Purdue’s retirement, see the Purdue Retirement Program Overview.