The Case Western Reserve University Deferred Compensation Plan (the "Plan") is a voluntary plan and is independent of other retirement/deferral plans sponsored by Case Western Reserve University (the "University"). The Plan was established to provide eligible employees with the opportunity to defer a portion of the compensation otherwise payable to them by the University. For more details, review the complete Deferred Compensation Plan and the FAQ and Highlights.
Plan Updates
Important Retirement Plan Changes:
- Adding one investment on August 25, 2023
- Removing one investment on August 25, 2023
Vanguard Real Estate Index Fund Admiral Shares is being added to the plan.
Vanguard Real Estate Index Fund Institutional Shares is being removed from the plan. If you have money in this investment, your balance and future contributions will move to Vanguard Real Estate Index Fund Admiral Shares.
The University will determine the group of employees who are eligible to make compensation deferrals under the Plan for each plan year (July 1 through June 30).
Conditions for Active Participation
You are eligible to defer compensation under the Plan for a plan year if you have submitted a Compensation Deferral Agreement and Election Form to the University and you meet all of the following requirements:
- You are designated by the University as eligible to make compensation deferrals under the Plan for the plan year; and
- You are eligible for the Case Western Reserve University Faculty and Key Administrative Employees' Retirement Plan (Plan A); and
- You are contributing the maximum amount allowable to your Case Western Reserve University supplemental retirement account.
If you become a participant in the Plan and thereafter cease to qualify for active participation, you will cease to be eligible to defer compensation under the Plan for the plan year. The Plan benefits of a participant whose participation is suspended will continue to be maintained under the Plan.
Your active participation in the Plan will cease upon your termination of employment for any reason.
You may elect to defer a portion of your compensation from the University on a pre-tax basis by completing a Change in Deferral Form. You may defer the maximum amount allowed by law.
In order to defer compensation under the Plan, you must enter into a compensation reduction agreement with the University whereby you agree to have a portion of your "basic compensation" deferred. For purposes of the Plan, “basic compensation” is the annualized cash compensation, including summer salary, that is to be paid or is payable as salary in respect of your service to the University, for faculty members as stated by the faculty appointment letter or salary authorization letter and for staff members as stated by the notification of approved annual salary. Basic compensation includes your salary deferrals to this Plan, Plan A, and any Code Section 125 cafeteria plan maintained by the University. Basic compensation excludes consulting fees, professional fees, honorariums or monies paid over and above the annual appointment compensation or salary.
A compensation deferral agreement is irrevocable with respect to amounts earned while it is in effect, but may be revoked at any time by you upon 30 days' notice to the University with respect to amounts not yet earned. You may prospectively change the amount of your compensation reduction once per calendar quarter. A compensation deferral agreement will remain in effect until it is revoked or upon your termination of employment from the University.
If you are within 3 years of your normal retirement age (age 65), then you may be able to defer amounts ("catch up" contributions) that are greater than the maximum amounts described above. These catch-up contributions cannot exceed the lesser of (i) twice the normal annual dollar limitation (described above) or (ii) the sum of the normal annual limitation for the calendar year plus the unused normal annual limitations for previous years.
You will be 100% vested in your own benefits under the Plan.
Timing of Payment
In general, you may not receive your benefit under the Plan until you terminate employment. However, under limited circumstances (e.g., attainment of age 72 or an “unforeseeable emergency”), you may receive all or part of your benefits from the Plan while still employed.
Payment Options
Unless you elect otherwise, you will receive your benefit under the Plan in the form of a lump sum payment, commencing within 90 days after you terminate employment. Alternatively, if your Plan benefits exceed $5,000, you may elect within 60 days after your termination of employment (i) to receive your benefit under the Plan in an installment form of payment based on the available distribution forms of TIAA-CREF or Vanguard, as applicable, in effect with respect to your benefits under the Plan, or (ii) to defer commencement of your benefit until a specified later date, or (iii) execute a plan-to-plan transfer to an eligible deferred compensation plan that provides for acceptance of such transfers. However, distribution of benefits is required to commence by April 1 following the later of (i) the calendar year in which you attain age 72, or (ii) the calendar year in which you terminate employment. To the extent required for the administration of the Plan, the terms of the agreement with the Teachers Insurance and Annuity Association (“TIAA”) and/or the College Retirement Equities Fund (“CREF”) or the Vanguard Group of Investments Corporation (“Vanguard”) applicable to your benefits under the Plan, as currently in effect or as hereafter modified, are hereby fully incorporated herein by reference.
Death
If you die prior to receiving payments, your beneficiaries will receive your Plan benefits in one of the forms of benefit payment then available under the Plan. If you die after payments have commenced, but before receiving all of the payments due you, the remaining payments will be paid to your designated beneficiary in accordance with the payment method in effect at the time of your death.