University of Alaska Pension Plan
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. For employees first hired into an eligible position between July 1, 2006, and June 30, 2015, eligibility for the Pension Plan is tied to the selection of the Optional Retirement Plan (ORP Tier 3). Retirement plan eligible employees hired on or after July 1, 2015, participate in the Pension Plan regardless of what other retirement plan they choose (PERS, TRS, or ORP).
Upon termination of all employment 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. The university does not routinely report terminated status to the fund sponsors; you must initiate that with the distribution request process. Review The Handbook (pdf) for more information.