Purdue Standard Retirement and Savings Plans (PSRS)
- 403(b) Base
- 401(a) Mandatory
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.
Retirement Plan Eligibility and Contribution Rates for Monthly Paid Employees
- 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.
Note: no waiting period applies for benefits-eligible administrative and professional staff, continuing lecturers and cooperative extension educators.
- 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
Funds in all exempt defined contribution plans are immediately vested.
Benefit at Retirement
The amount of income you receive at retirement depends upon several factors, such as the size of the accumulation at retirement and the age of the employee and spouse. The defined contribution plan offers a variety of settlement options to help meet your income needs.
More detailed plan information, such as investment options, fund performance, online enrollment, etc. is available on Fidelity's website.