Local 11 Retirement Plan
The retirement plan provided to staff employees covered by Local 11 bargaining agreements is designed to provide retirement income for long-term employees of the university. The plan provides lifetime retirement benefits based on the number of years of service, the employee's earnings as a non-exempt employee, and age at retirement. After satisfying the eligibility service requirement, a staff employee covered by the Local 11 bargaining agreement is automatically covered under the plan, which is funded entirely by the university. Benefits are insured through the Pension Benefit Guaranty Corporation, an agency of the federal government. The university is required to set aside monies to fund current and future retirement benefits in accordance with federal funding rules.
You accrue pension benefits (for lifetime payments beginning at age 65; or at age 60 with 25 years of service) at the rate of 2.2% of salary per year. You may start receiving benefits as early as age 55; however, the monthly benefit will be significantly reduced. You also can contact the Office of Benefits Administration for an estimated benefit calculation.
Your retirement benefits are vested after five years of eligible employment providing you work a minimum of 1,000 hours each year. Hours worked as an exempt employee or as a casual or student worker count toward the required hours.
When you retire, you may choose from a variety of annuity options. Your spouse's notarized consent is necessary if you select an option that does not provide spousal benefits. Options include lifetime payments to you without survivor benefits, lifetime payments to you with 10-years certain payments to your beneficiary, or survivor annuities that provide continuing benefits to your spouse in the event of your death. If you leave the university after your plan benefits have vested, distribution of those benefits depends on their value when you leave (regardless of your exempt/non-exempt status when you terminate employment):
- Less than $5,000—the actuarially calculated present value of your benefits will either be paid to you as a taxable distribution or you may elect to have the balance rolled over into another tax-qualified retirement plan or IRA.
- More than $5,000—distribution of the benefits (with the annuity options listed above) will be available to you when you reach age 55 or older.
Who's eligible?
Full-time and part-time non-exempt staff who are covered by Local 11 bargaining agreements and at least 21 years old are eligible.
Cost
USC pays the entire cost of the retirement plan.
What do I need to do?
There are no forms to complete to join the plan.
| Enroll |
Coverage starts |
Change or cancel |
 |
Automatically enrolled |
After six months of employment and 500 hours of service |
No, unless employee changes to job not covered by Local 11 bargaining agreement |
|
Questions?
For more information, including an estimated benefit calculation, contact the Office of Benefits Administration at benefits@usc.edu or (213) 740-6027.
·
·
·
·
·
·
·
·
·
·
·
|
