Distributions from Your Supplemental Tax Deferred Annuity Plan and Staff Pension Plan
Once you retire, you can receive income from the Supplemental Tax Deferred Annuity (STDA) Plan and Staff Pension Plan (SPP) at any time. For the STDA plan, you can elect immediate payment in a single sum, make partial withdrawals, or choose an annuity. For the SPP, you may elect various forms of an annuity or lump-sum payment within a specific period of time after you retire.
When your employment ends, you have several options for the STDA plan:
- You may keep your account invested through the plan. You will continue to enjoy the investment options currently available, and you may transfer from one investment option to another in accordance with the rules of the plan.
- You may cash out of your investments (unless you are invested in the TIAA traditional annuity, which can only be cashed out over a 10-year period). Keep in mind, however, that income taxes will apply to the amounts you cash out. Also, if you cash out your investments before age 59 1/2, a 10% federal tax penalty may apply.
- You may rollover your account balance to a qualified retirement account (i.e., IRA). To avoid tax consequences, the rollover should be made directly from the plan to your personal account. Tax laws change frequently and you should obtain current information at the time of your termination of employment.
When your employment ends, you have several options for the Staff Pension Plan:
- If your actuarial present value of your benefit does not exceed $5,000, distributions may be made in the form of a lump sum payment without your consent or the consent of your beneficiary.
- If the actuarial present value of your benefit exceeds $5,000 but does not exceed $50,000, the Plan provides a six-month window during which you or your surviving spouse can elect to receive a lump sum payment in lieu of a monthly annuity.
- If you are not married at retirement, the normal form of payment is a Life Annuity. If you are married at retirement, the normal form of payment is a 50% Joint and Survivor Annuity.
- This applies to all plan participants.
- You can initiate the process of receiving your benefit from the Staff Pension Plan by contacting the NYU Pension Service Center at Aon at 1-855 632-5016, Monday through Friday from 9:00 am to 5:00 pm ET. If you call outside of business hours, please leave a message, including your contact information, and a service center representative will return your call promptly. If you wish to receive your pension at the time of your retirement, you must make your election within the 30 to 180 day period before you retire.
- For Local 810 employees, your retirement plan benefits are administered by the Union under the Collective Bargaining Agreement.
Supplemental Tax Deferred Annuity (STDA) Plan
Once you reach age 59 1/2 or are certified as permanently disabled, you can access your money at any time. Keep in mind, however, that income taxes will apply on the amounts you withdraw. In certain situations of serious financial hardship, you may be approved for a Hardship withdrawal.
NYU Staff Pension Plan
You are not eligible to receive benefits from the Staff Pension Plan while you are employed by NYU.