How to Obtain Benefits

Your plan benefits will normally start when you retire. Prior to age 65, you may not withdraw any of the funds in your Retirement Plan accounts under any circumstances as long as you are employed at the University. Once you reach age 65, you may start your benefits—regardless of whether you are retired or still employed.

Your retirement benefits can be distributed in different ways; you may choose the form of payment. You should contact Fidelity for a distribution form. They have counselors who will provide you with information that may help you in deciding which distribution option best meets your financial needs.

Particularly if you have large plan account balances (or other retirement plan accumulations, including other 403(b) arrangements, employer-qualified plans, or IRAs), your choice of a form of payment may affect your tax and estate planning. Consult a qualified advisor if you have any questions.

Descriptions of the forms  of payments

Lump Sum You may elect to receive a lump sum distribution from any funds available through Fidelity for the full value of your accounts at the time of the payment.

Installment Withdrawal Program  As an alternative, you may elect to maintain your account balances with any funds available through Fidelity and receive periodic withdrawals from your account until you have exhausted your account balances. You may designate the amount and the frequency of these withdrawals (subject to certain minimums required by the tax law).

Rollover You may also elect to roll over all or a portion of the account balances in any funds available through Fidelity into an individual retirement account (IRA) or another plan you participate in that accepts rollovers, provided you meet certain tax law requirements. If you wish, you may use the proceeds of your account to purchase an annuity. Please see Income Solutions, an online annuity comparison tool for more information on annuities. You may wish to consult with your financial advisor before selecting this option.

Your Spouse’s Rights

Under federal pension legislation, if you choose a method of payment other than a Survivor Annuity with your spouse as the survivor, your spouse must give written consent that acknowledges his or her rights to survivor annuity benefits are being waived. Your spouse’s signature must be witnessed by a plan representative or notarized by a notary public.

Federal pension law (ERISA) provides that if you are married at the time of your death, your spouse is entitled to receive, as primary beneficiary, your qualified preretirement survivor death benefits under a retirement or tax-deferred annuity plan covered by ERISA. If you name someone other than your spouse as primary beneficiary, your spouse must consent to this primary beneficiary designation by completing a Spousal Waiver. The qualified preretirement survivor annuity death benefits will then be payable to such primary beneficiary. If you elected only a portion to be paid to the designated beneficiary, then the remainder will be payable to your spouse.

If you designate your spouse as beneficiary and the individual later ceases to be your spouse, such designation will be deemed void and your ex-spouse will have no rights as a beneficiary unless redesignated as a beneficiary by you subsequent to becoming your ex-spouse, or as otherwise provided under a Qualified Domestic Relations Order (QDRO) under Internal Revenue Code Section 414(p).