Questions and Answers about Retirement Benefits
When do new employees become eligible to participate in the USC Retirement Savings Program?
After you have completed six months of employment in which you worked at least 500 hours, you are eligible to enroll in the USC Retirement Savings Program and receive the USC contributions to your retirement account. Contributions will begin in the pay period following completion of your six-month/500-hour eligibility period. You must be at least 21 years old to participate. All USC faculty and staff, regardless of age or percentage of time worked, and no matter how long they have worked at the university, may begin a Supplemental Retirement Plan to take advantage of tax-deferred savings for their retirement.
What happens to my retirement plan if I change from a non-exempt job to an exempt job?
After July 1, 2007, it doesn't matter whether you are in a non-exempt position or an exempt one. If you changed from a non-exempt to an exempt position before that date, you also may have vested benefits in the old Non-Exempt Staff Retirement Plan. Those benefits remain protected and insured by the federal Pension Benefit Guaranty Corporation.
What happens to my retirement plan if I change from an exempt job to a non-exempt job?
After July 1, 2007, it doesn't matter whether you are in a non-exempt position or an exempt one. All eligible faculty and staff are now under a single retirement plan.
What happens to my benefits if I leave USC?
Many options are available to you, including leaving the funds invested as they are, rolling them over to another employer's retirement plan or an IRA, or taking distributions. Surrender charges may apply, in addition to taxes and early distribution penalties. When you terminate employment, contact your benefits office for information about your retirement account. You must begin to receive required minimum distributions by the April 1 following the year you turn 70½. Please keep the university informed of your home address after you leave.
Can I rollover funds from a previous employer into these plans?
Funds from your prior employer's retirement plans may be eligible to roll over into USC's Supplemental Retirement Plan. Funds transferred will be subject to all of USC's plan rules, including rules on accessing balances. Contact your benefits office for information.
Can I have an IRA in addition to the USC Retirement Savings Program and/or the Supplemental Retirement Plan?
Eligibility to participate in either of these retirement plans may affect your ability to deduct an IRA contribution on your tax return. Discuss your particular situation and information about your university retirement plans with your tax consultant.
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