In general, a Participant is not eligible to receive distributions from the Plan while actively employed by the College, unless permitted to do so under the terms of a partial or phased early retirement agreement or plan. Employees may, however, access funds prior to these terms in certain specific circumstances as outlined below.
A Participant may borrow against his or her Participant contributions, subject to certain restrictions, including minimum amounts. The minimum loan amount is $1,000. The maximum loan that can be outstanding at the time a loan is made shall be the lesser of 45% or $50,000 of the Participant’s total accumulation in his or her Participant Contribution Account (including earnings). Loans must be repaid in five years, or ten years if used to purchase a primary residence. A Participant may not have more than three (3) loans outstanding at any time. Participants cannot borrow against any College contributions.
Rollover Contribution Withdrawals
A Participant may withdraw his or her Rollover Contributions at any time in a lump sum, subject to any restrictions set forth in the investment funds in which such amounts are invested. Rollover Contributions withdrawal will be subject to a 10% early distribution penalty if the Participant is under age 59½.
In-Service Withdrawals at Age 59-½
A Participant who has reached age 59½ or older may request a withdrawal of his or her optional participant contributions (and any earnings) made to a Retirement Annuity, regardless of whether the Participant remains employed by the College. Any such withdrawals will be subject to the terms of the investment option to which the Participant has allocated his or her contributions.
A faculty member who participates in the College’s phased retirement program and who is age 59½ or older may withdraw amounts allocated to the Participant’s Retirement Annuity, regardless of whether the Participant remains employed by the College.
A Participant who has reached age 59½ or older may withdraw amounts allocated to the Participant’s Supplemental Retirement Annuity and/or Group Supplemental Annuity regardless of whether the Participant remains employed by the College.
A Participant may elect to receive, while still working the portion of his or her own contributions (exclusive of investment earnings) the amount necessary to satisfy an immediate and heavy financial “hardship.” This means expenses arising from one of the following:
- Costs directly related to the purchase of the Participant’s principal residence (excluding mortgage payments).
- Payments to prevent the eviction from or foreclosure on the mortgage upon the Participant’s principal residence.
- Tuition payments, related educational fees, and room and board expenses, for the next 12-months for college or postgraduate education for the Participant or his or her spouse, children, dependents or primary beneficiary.
- Medical expenses incurred by the Participant or his or her spouse, children, dependents or primary beneficiary and not covered by insurance.
- Funeral or burial expenses for a family member or primary beneficiary,
- Expenses for the repair of damage to the Participant’s principal residence that would qualify for the casualty deduction,
The Participant must also represent to the College in writing that he or she has insufficient cash or other liquid assets reasonably available to satisfy the need. In general, a 10% penalty tax, in addition to ordinary income tax, will be assessed on the amount withdrawn if the participant has not reached 59 1/2.