USC Retirement Savings Program
USC is committed to supporting your retirement savings by making a 10% employer contribution when you contribute 5%, and to providing you with as many options as possible to maximize your retirement savings opportunities. And to build even higher income for your retirement years, you can make additional supplemental contributions. Your employment at USC is covered by Social Security, so Social Security benefits also may be part of your retirement income.
The USC Retirement Program matches your pre-tax or Roth contributions up to 5% of your eligible earnings. The university also makes a 5% non-elective contribution whether or not you contribute. This means that the university will make a total 10% contribution if you make a 5% employee contribution.
|You||USC Match 100% Vested||USC Non-Elective*||USC Total||Grand Total (You+USC)|
|*The USC non-elective contribution will be subject to a four year graded vesting schedule (25% per credited year of service) for employees hired on or after January 1, 2012. You will earn a year of vesting credit for each calendar year in which you are credited with at least 1000 hours of service. Each year of vesting credit earns you 25% ownership in the non-elective portion of the USC contribution. The USC matching contribution, the portion that matches one-to-one your 1–5% contribution, is structured to meet the IRS 401(m) “safe harbor” criteria and is 100% vested at all times. (VESTING: An employee’s right to receive a present or future pension benefit is vested when it is no longer contingent upon the employee remaining in the service of the employer. Vesting of both employee and university contributions is immediate if you were hired before January 1, 2012.)|
Faculty and staff employees (who are at least 21 years of age) may enroll in the retirement plan and begin making contributions after completing six months of employment in which they work at least 500 hours. Benefits will track your eligibility and notify you approximately 30 days prior to your eligibility start date. (Note: You may begin making contributions to the supplemental retirement plan as soon as you become a university employee.)
You choose the percentage of your eligible earnings you want to contribute, and the university will match your contribution. Although the university encourages you to maximize your retirement savings and participate at the highest possible level, if you decide you are not able to contribute to your retirement plan, USC will still contribute 5% (the “non-elective contribution”—see chart, above).
How your money is invested
Contributions are invested by your choice of companies from the selection provided by the university to manage the investment of the retirement plan contributions. Each company offers a wide variety of investment options:
- Fidelity Investments plan.fidelity.com/usc.rsp
- TIAA www.tiaa.org
- Vanguard www.vanguard-education.com/usc
Enrolling or changing enrollment
You can change your contribution level, your investment funds and your investment company at any time—you do not have to wait for open enrollment. You also can transfer monies between companies and between investment funds at any time subject to limitations on the frequency and amount of transfers set by the investment and insurance companies.
Along with deciding the percentage you will contribute, you may also choose to have your contributions made before taxes are calculated, giving an immediate tax benefit, or as an after-tax Roth contribution which gives a future tax benefit providing you meet all the criteria when you withdraw the funds.
You also need to designate your beneficiaries.
If you do not enroll before you are eligible to participate, a retirement account will be established for you under the plan’s default provisions—the 10% USC contribution/5% employee pre-tax contribution level and investment in the Vanguard Target Retirement Fund most appropriate for your estimated retirement age (assuming a retirement age of 65). However, you can change this default enrollment at any time, effective with the next pay period.
Accessing your money
You may leave your money in the USC retirement plans after you terminate employment. You are not required to take money out of the account until the IRS requires you to do so at age 70½. The USC plan does not require taking the 70½ IRS-required minimum distribution from your retirement plan as long as you are still actively employed at USC; however if you do not take the required minimum distributions following termination, USC will direct the provider to automatically distribute a payment to you to meet this obligation. If you have retirement accounts from other employers or IRAs, you will need to check with those plans to determine when they will require you to take a minimum distribution. We suggest you contact your provider to discuss options and any possible restrictions.
Once you have left USC, contact your retirement vendor to discuss your options and request the applicable forms. After completing the forms and having your spouse’s signature notarized (if applicable), submit the paperwork to Benefits (contact the HR Service Center for help). Benefits will forward the documents to your vendor on your behalf. However, we recommend waiting one pay cycle from your termination date to start this process, to allow all final contributions to post to your account. Also, your withdrawal paperwork cannot be processed until the payroll system no longer shows you as active employee and specifies a termination date.
In some cases, funds may be accessed early – see our In-service distributions page for details.
Extensive information is available online from each of the participating companies. In addition, you can make an appointment with a retirement counselor from your investment company to review your asset allocation, determine if you are saving enough to meet your retirement goals, and evaluate your distribution options at retirement. Appointments are available every month at both UPC and HSC. See the Retirement education page for details. If you need copies of any of the documents below, contact the HR Service Center.
USC Retirement Savings Program Summary Plan Description
Important Notice about the USC Retirement Savings Program 2017
Authorization to Release Information
USC Tax Deferred Annuity Plan – 2015 Summary Annual Report
USC SSRP Funding Notice 2016
USC Defined Contribution Retirement Plan – 2015 Summary Annual Report
USC Non-Exempt Staff Retirement Plan (frozen 6/30/07)
Effect of latest DOMA-related decisions
Fidelity Investments | plan.fidelity.com/usc.rsp
TIAA | www.tiaa-cref.org/schedulenow
Vanguard | www.vanguard-education.com/usc
Participant Fee Disclosure Notice
The Participant Fee Disclosure Notice, required by the Department of Labor, was developed to help ensure that participants (and also employees who are not participating or not yet eligible to participate) receive sufficient information regarding their plan and the investment options available to them.
USC has directed TIAA, one of the vendors available under the USC Retirement Savings Program, to collect this data from all of the vendors and present their information in a combined notice. This publication contains information that can help you make informed decisions about any account you may have in the retirement plan and includes:
- Fees and expenses related to plan accounts
- Participant rights under the plan
- Rules related to providing investment direction
- Details about the plan’s investment options, including investment-related fees and restrictions
For most participants, this notice will be provided annually. The most recent disclosures:
- USC 401a Investment Comparison and Services Cost Summary
- USC 403b Investment Comparison and Services Cost Summary
If you have any questions regarding this notice, please contact the USC Retirement Administration Office at email@example.com.
Update to Annual Participant Fee Disclosure Notice
Please read the USC April 2015 CREF Share Class Notice which updates the CREF information contained in the 2014 Participant Fee Disclosure Notice that was distributed via email in November 2014.
The Notice is sent to comply with a 2012 requirement by the Department of Labor (DOL) and was developed to help ensure that participants (and also employees who are not participating or are not yet eligible to participate) receive sufficient information regarding their plan and the investment options available to them.
This information is required to be sent to:
• all participants in the Plans,
• all eligible employees who have not elected to make contributions,
• all other employees who have not yet met an eligibility period.
As a reminder, all faculty and staff are eligible to make unmatched pre-tax or Roth contributions to the supplemental component of the USC Tax-Deferred Annuity Plan. Employees who have satisfied an eligibility period receive a USC non-elective contribution and are also eligible to make pre-tax and Roth contributions to the match portion of the Plan in order to receive USC matching contributions.
Questions can be directed to TIAA using the contact information provided in the notice or to USC Retirement Plan Administration at firstname.lastname@example.org.
All retirement plan documents are available upon request.