The University of Alaska contributes 7.65 percent of the eligible employee’s salary (up to maximum annual wage base of $42,000) to the Pension (401a) Plan. Employees select their own investments through one of the four investment companies. See Pension Vendors. Employees choose where the contributions will be invested and investment options within that plan. If employees make no investment decision, the money will be placed in a life cycle fund, Fidelity Freedom Fund.
Employees hired before July 1, 2006 were 100 percent vested in the plan from the date of hire or eligibility. Employees initially hired on or after that date vest after three years. Eligibility for the Pension Plan is tied to the selection of the Optional Retirement Plan (ORP Tier 3) for employees first hired after July 1, 2006.
Upon termination and after a 45-day period, employees may leave the funds with the fund sponsor, request a lump sum distribution or roll funds over into another qualified plan or IRA. Review The Handbook
(pdf) for more information.