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The University of ChicagoContributory Retirement Plan (“CRP”)Defined Contribution Plan as in effect August 28, 2019Summary Plan DescriptionAugust 2019The University of Chicago Contributory Retirement Plan
Table of ContentsAbout Your CRP Benefits . 4CRP Highlights . 5Eligibility and Participation . 7Employment Classification . 7Participating in CRP . 8When Participation Begins . 8Participation During a Leave of Absence . 8When Participation Ends . 9How CRP Works . 10Contributions to CRP. 10Compensation . 10Tax Advantages of CRP . 10Contribution Limits. 11Enrolling in CRP . 12Enrollment . 12Your Enrollment Elections . 12Investment Fund Disclosures . 13Monitoring Your Investment Fund Elections . 14Transferring Amounts Among Investment Funds . 14Investing Your Account After Termination of Employment. 15Vesting in CRP . 16General Vesting Requirements . 16Vesting Years . 16Participant Loans . 18Amount of Loan . 18Securing Your Loan. 18Loan Term . 18Loan Payments . 18Loans in Default . 18Spousal Consent . 19Qualified Military Service . 19Loan Set-Up Fee . 19Applying for Loans . 19Receiving Your Benefits. 20While You Are Employed by the University. 20After You Leave the University. 20August 2019The University of Chicago Contributory Retirement PlanPage 1
Benefit Payments Under CRP . 20Electing an Optional Form of Payment . 22Things to Consider Before Choosing a Payment Option . 22Direct Rollovers . 23Required Minimum Distributions . 23Paying Taxes . 25Death Benefits . 26Naming a Beneficiary . 26Amount of Death Benefit . 27Forms of Payments for Death Benefits . 27Required Minimum Distributions . 28Administrative Information . 29Your ERISA Rights . 29Plan Administrator . 31Plan Amendment and Termination . 31Qualified Domestic Relations Orders . 31Glossary . 33Plan References . 36A Final Note . 37August 2019The University of Chicago Contributory Retirement PlanPage 2
About This Summary Plan DescriptionThis Summary Plan Description (SPD) summarizes the provisions of The University of ChicagoContributory Retirement Plan (“CRP”) as it pertains to current and former University employees andtheir beneficiaries on or after August 28, 2019.The University of Chicago Medical Center (the “Medical Center”) established a separate ContributoryRetirement Plan (“Medical Center’s CRP”) for the benefit of its eligible employees. Current and formerMedical Center employees and their beneficiaries should refer to the Summary Plan Description thatthe Medical Center provides for participants in the Medical Center’s CRP.Throughout this SPD, you will see references to the Retirement Income Plan for Employees (“ERIP”)and the Supplemental Retirement Plan (“SRP”). For additional information about these plans, refer toeach plan’s Summary Plan Description.August 2019The University of Chicago Contributory Retirement PlanPage 3
About Your CRP BenefitsCRP was established by The University of Chicago (the “University”) to provide Eligible Employeeswith a portion of the income they will need during retirement.CRP is a plan described in Section 403(b) of the Internal Revenue Code. Under CRP, you arerequired to make Mandatory Employee Contributions each pay period. The University will makeMandatory University Contributions each pay period. These Employee Contributions and UniversityContributions (CRP Contributions) as well as any rollover contributions, as adjusted for anyinvestment gains or losses, make up your retirement savings account from which you can drawadditional retirement income. The CRP is referred to as a Defined Contribution Plan because thecontributions are defined, and the benefits you receive from CRP depend on the Vested value of yourretirement savings account at the time you retire or otherwise terminate employment. These benefitsare tax-deferred. This means you pay no income taxes on your benefits until you withdraw amountsfrom your retirement savings account.We encourage you to read this SPD carefully and share it with your family.If you have questions about your CRP benefits, call the Benefits Office at 773-702-9634 or send ane-mail to benefits@uchicago.edu. You may request a hard copy of this document by contacting theBenefits Office, and one will be provided free of charge.August 2019The University of Chicago Contributory Retirement PlanPage 4
CRP HighlightsHighlightsEligibility and ParticipationYou are eligible to participate in CRP if you work in a CRPeligible position. Generally, you are eligible if you are a full-timefaculty or academic employee, an officer of the University, aLibrarian, a Laboratory School Teacher, or in some cases, astaff employee who is compensated at or above an annualsalary level as specified by the University. See Eligibility andParticipation for more information.Mandatory ContributionsOnce you meet the participation requirements, yourparticipation will begin, and as a condition of employment, youmust make Mandatory Employee Contributions of 5% of yourCompensation and the University will make MandatoryUniversity Contributions equal to 8% of your Compensation.Total Savings OpportunityWith the Mandatory University Contributions, you receive anamount equal to 13% of your Compensation — with only 5%coming out of your paycheck.EnrollmentIf you are an Eligible Employee, you will be enrolled in CRPonce you satisfy the participation requirements, and your 5%Mandatory Employee Contributions will automatically begin.When your CRP participation is about to begin, an email will besent to your Workday inbox.Investment FundsYou can invest your CRP Contributions in a variety ofinvestment options available under the Plan, including targetdate funds, index funds, actively managed investments and/or aSelf-Directed Brokerage Account.1For more details regarding the investment funds, visit theRetirement Account website athttps://www.tiaa.org/public/tcm/uchicago or call 800-842-2252to speak with a representative of TIAA, which serves as thePlan’s Recordkeeper.VestingYou are always 100% Vested in your own EmployeeContributions (including rollover contributions). You willbecome fully Vested in your University Contributions after youcomplete three (3) Vesting Years or, if earlier, the date you (i)attain age 65 while employed by the University or an AffiliatedEmployer or (ii) die while employed by the University.1 Please Note: The University does not monitor the performance of the funds offered through the Self-Directed BrokerageAccount or related fees and expenses. Participants in CRP bear the risk of investing through the Self-Directed BrokerageAccount.August 2019The University of Chicago Contributory Retirement PlanPage 5
HighlightsLoansYou may obtain participant loans under CRP while employedby the University. The minimum amount that may be borrowedis 1,000, and the maximum amount that may be borrowed is 50,000. See Participant Loans for further information.Prior loans under CRP’s participant loan program and theparticipant loan programs under any other plan maintained bythe University or an Affiliated Employer may reduce yourmaximum loan amount.Benefit AmountYour CRP benefit is determined by the value of your Vestedretirement savings account that includes your CRPContributions and any investment gains or losses.Payment OptionsYou can receive your Vested CRP benefit any time after youterminate employment with the University or an AffiliatedEmployer if later. You may also be eligible to receive an inservice distribution while employed by the University (seeReceiving Your Benefits for more information). CRP offers anumber of payment options, including annuities, lump sumpayments, and periodic payments. In most cases, you mayalso elect that all or a portion of your Vested CRP benefit berolled over to an eligible retirement plan, e.g., an individualretirement account (IRA).If you choose an annuity option, the amount of your monthlybenefit depends on the type of annuity option you select andthe amount of the Vested portion of your retirement savingsaccount you choose to annuitize.Note there are restrictions on lump sum payments fromamounts invested in the TIAA Traditional Annuity products.See page 21 for more details.See Benefit Payments Under CRP for further information.August 2019The University of Chicago Contributory Retirement PlanPage 6
Eligibility and ParticipationYou are an Eligible Employee on the first day of your appointment with the University if you areclassified as a “benefits-eligible” employee and you are a/an: Member of the faculty or an academic employee appointed to full-time service, Officer of the University appointed to full-time service, Librarian appointed to full-time service, or Certain staff employee whose compensation was at or above an annual salary level asspecified by the University at the time of hire.On or before June 30, 2016, any employee of the University who was classified as a benefits-eligiblenonacademic employee in the payroll system maintained by the University and who was compensatedat or above an annual salary level as specified by the University for the Plan Year became an EligibleEmployee on the date his or her annual pay rate equaled or exceeded the specified annual salarylevel. Those Employees continue to participate in CRP regardless of whether they are compensatedat or above the annual salary level specified by the University for any subsequent year. On or afterJuly 1, 2016, such employees will remain Participants in ERIP rather than transferring to CRP.Alternatively, you will become an Eligible Employee on the first day after completing one year ofemployment following your appointment with the University if you are classified as a “benefitseligible” employee and you are a: Member of the faculty, an academic employee, an officer, or a Librarian appointed to half-timeservice (or more) but less than full-time service, or Laboratory School Teacher appointed to full-time service.Note that if you are hired for a non-CRP eligible position before being appointed to one of the positionslisted above, you become eligible to participate in the University’s Retirement Income Plan forEmployees (“ERIP”) after your first year of employment. Under those circumstances, you remain inERIP until you are eligible to participate in CRP on the first day after completing one year ofemployment following your appointment in one of the above-mentioned positions.If you transfer employment from the Medical Center to the University or are rehired by the Universityfollowing a termination of employment with the Medical Center, the participation requirements may bedifferent. See For Employees Transferring from the Medical Center to the University for furtherinformation.The participation requirements were different prior to July 1, 2005. If you have any questionsregarding the prior participation requirements, contact the Benefits Office.Employment ClassificationYour employment classification or job position is determined solely from the payroll or personnelrecords maintained by the University at the time services are performed, and such determination isbinding and conclusive for all purposes of CRP participation.For example, if you are classified as an independent contractor or an individual whose services areperformed pursuant to a leasing agreement (i.e., you are not classified as a common law employee bythe University at the time services are performed), you are not eligible to retroactively participate inCRP regardless of any judicial or administrative reclassification or subsequent reclassification by theUniversity.August 2019The University of Chicago Contributory Retirement PlanPage 7
Participating in CRPWhen Participation BeginsOnce you satisfy the requirements for participation, you will be enrolled in CRP, and your participationin CRP will begin.Your Mandatory Employee Contributions, which are required as a condition of employment, willbegin as follows:For “benefits-eligible” employees who are Members of the faculty or academic employees appointed to full-time service, Officers of the University appointed to full-time service, Librarians appointed to full-time service, or Certain staff employees whose compensation was at or above an annual salary level asspecified by the University at the time of hire,participation begins on the first day of your appointment with the University.For “benefits-eligible” employees who are Members of the faculty, academic employees, officers, or librarians appointed to half-timeservice (or more) but less than full-time service, or Laboratory School Teachers appointed to full-time service,participation begins on the first day after completing one year of employment following yourappointment with the University. However, if you are first hired into a position that is not CRP-eligible,after one year of employment, you will become eligible to participate in the University’s RetirementIncome Plan for Employees (“ERIP”). Under those circumstances, you remain in ERIP until you areeligible to participate in CRP on the first day after completing one year of employment following yourappointment in one of the above-mentioned positions.The enrollment dates for Mandatory Employee Contributions were different prior to July 1, 2005. Ifyou have any questions regarding enrollment dates prior to July 1, 2005, contact the Benefits Office.For Employees Transferring from the Medical Center to the UniversityIf you transfer employment from the Medical Center to the University or are rehired by the Universityfollowing a termination of employment with the Medical Center and you have met the participationrequirements outlined under Eligibility and Participation, you will continue or commenceparticipation in CRP as of your transfer date or rehire date, provided you are hired by the University asan Eligible Employee.If you transfer employment from the Medical Center to the University or are rehired by the Universityfollowing a termination of employment with the Medical Center prior to meeting the participationrequirements, you will participate in CRP once you satisfy the requirements for participation. In otherwords, you will be treated like any other new hire of the University.Participation During a Leave of AbsenceUnpaid LeaveWhile you are out on an approved leave of absence without pay, including an unpaid leave under theFamily Medical Leave Act, your contributions and University contributions to CRP are suspended.When you return to work in the same or another Eligible Employee position, your MandatoryEmployee Contributions and the Mandatory University Contributions will automatically resume.August 2019The University of Chicago Contributory Retirement PlanPage 8
Paid LeaveWhile you are out on a paid leave of absence, including a short-term disability leave, your EmployeeContributions and the University Contributions to CRP will continue based on the actual pay youreceive.Long-term DisabilityIf you become totally disabled, the University will contribute on your behalf 13% of your pre-disabilitysalary, i.e., the percentage that is equal to the sum of your 5% Mandatory Employee Contributionsand the Mandatory University Contributions of 8%. These contributions will cease when you are nolonger disabled, no longer eligible to receive payments under the University’s long-term disabilityprogram, or when the contributions cease to be excludable from your income under applicable taxlaws, whichever occurs first. If you later return to work in the same or another Eligible Employeeposition, your Mandatory Employee Contributions and the Mandatory University Contributions willautomatically resume.Qualified Military ServiceIf you leave the University to perform Qualified Military Service, special provisions under theUniformed Services Employment and Reemployment Rights Act may apply to you if you return toemployment with the University. If you timely return to employment with the University or an AffiliatedEmployer when your military service ends, you will be given an opportunity to make the contributionsyou would have made to CRP if you had not been absent due to your Qualified Military Service. If youmake these contributions following reemployment in accordance with time limits under USERRA, theUniversity will also contribute the amount it would have contributed on your behalf had you not beenperforming Qualified Military Service.When Participation EndsGenerally, you continue to actively participate (i.e., you continue to make and receive contributionsunder CRP) so long as you are an Eligible Employee. Your active participation in CRP will terminateupon any of the following events: You retire or otherwise stop working for the University. Your position changes and you are no longer an Eligible Employee. CRP is amended to exclude from participation a classification of employees of which you are amember. CRP is terminated by the University.If your participation ends because you no longer meet CRP’s eligibility requirements, your EmployeeContributions and the University Contributions to CRP will stop. However, you will continue to accrueVesting Years under CRP as long as you remain employed by the University or a University AffiliatedEmployer.August 2019The University of Chicago Contributory Retirement PlanPage 9
How CRP WorksThe following pages contain a more detailed explanation of CRP’s contribution features.Contributions to CRPUnder CRP, the University establishes a retirement savings account into which both you and theUniversity make contributions each pay period. So long as you are an Eligible Employee, you arerequired to contribute 5% of your Compensation to CRP as a condition of employment for each payperiod. The University will make Mandatory University Contributions equal to 8% of yourCompensation for each pay period.If you contribute 5% of your Compensation, the University contributes 8% of your Compensation, for atotal savings opportunity of 13%:These contributions — along with any rollover contributions — and any investment gains or lossesmake up your retirement savings account from which you can draw your retirement income.Prior to July 1, 2005, CRP’s contribution formula was different. If you have any questions regardingthe prior contribution formula, contact the Benefits Office.CompensationFor purposes of calculating your Employee Contributions and University Contributions, Compensationmeans your total gross wages paid by the University, excluding amounts paid on account oftermination of employment such as final accrued vacation and sick pay, but including yourcontributions to CRP and voluntary contributions to SRP, Flexible Spending Plan, and QualifiedTransportation Program. A Participant’s Compensation in a given plan year may not exceed thestatutory compensation limit, adjusted for cost-of-living increases in accordance with IRS CodeSection 401(a)(17)(B)).Tax Advantages of CRPYour Employee Contributions and University Contributions and any investment earnings or gains aretax-deferred. This means: Your Employee Contributions are deducted from your pay before taxes are withheld. Thatway, you save money on income taxes today while you save for your future retirement. Yourcontributions are taxed when paid to you. However, your Employee Contributions do notreduce your pay for purposes of computing your Social Security and Medicare taxes. University Contributions are not taxed as compensation when made to your retirementsavings account. Like your Employee Contributions, University Contributions are taxed whenpaid to you. Your retirement savings account grows faster because any investment earnings or gains onyour Employee Contributions and University Contributions are not taxed until paid to you.August 2019The University of Chicago Contributory Retirement PlanPage 10
Tax-deferred dollars can boost your retirement savingsAssume that you set aside 5% of your Compensation or 600 for savings each month and are ina 22% tax bracket.If you save through a regular savings account: You will be able to deposit 468 each month after taxes. Assuming a 6% earning rate, the contributions will grow to 70,200 in ten years aftertaking into account estimated taxes on the earnings.However, by saving through CRP: The full 600 a month is deposited to your retirement savings account. Assuming a same earning rate of 6%, the contributions will grow to 98,400 ( 28,200more than with a regular savings account).Contribution LimitsFederal tax laws limit the amount you and the University can contribute to your retirement savingsaccount under CRP each year. The sum of your Employee Contributions and University Contributions to CRP, and anycontributions to SRP or any other plan maintained by an Affiliated Employer, cannot exceed100% of your Compensation or the applicable IRS Annual Addition contribution limit,whichever is less.Note that the IRS contribution limits described above are adjusted annually for cost of living increases.August 2019The University of Chicago Contributory Retirement PlanPage 11
Enrolling in CRPEnrollmentWhen your CRP participation is about to begin, you will receive an email in your Workday inbox.The email will notify you when your Mandatory Employee Contributions and MandatoryUniversity Contributions will begin.Your funds in CRP will be held by Teachers Insurance and Annuity Association (“TIAA”) forrecordkeeping purposes. As part of the enrollment process, you need to: Choose among the various investment funds offered by the Plan. Designate your beneficiaries. See Naming a Beneficiary for further information.If you do not choose specific investment funds, your contributions and the University’s contributions toCRP will be invested in an age-appropriate retirement age target date fund.Your Enrollment ElectionsYour enrollment election is made in several steps.You determine your investment fundsInvestment funds available under the Plan are arranged in a four-tiered structure as follows: (i)target-date funds, (ii) index funds, (iii) actively managed investments, and (iv) a BrokerageAccount through which you can invest in additional mutual funds. You can create a tailoredretirement strategy by investing in funds from any of the four tiers. Please note that mutual fundsavailable through the Brokerage Account are not evaluated for suitability for Plan participants orotherwise monitored by the University. If you invest contributions in the Brokerage Account, youassume all risk (including losses) associated with selecting the mutual funds offered thereunder, aswell as all subsequent investment decisions related to your Brokerage Account.You must specify the investment funds in which you want your Employee Contributions and UniversityContributions invested. Your allocation may be to one investment fund or among any of the investmentfunds offered by the Plan in such amounts (or in such percentages) as established by the University.It is important that you carefully choose your investment funds because the benefits payable from CRPdepend on the performance of the investment funds you choose over the years. To obtain a current listof CRP’s investment funds and performance information, contact the Plan’s Recordkeeper by visitingthe Retirement Account website at https://www.tiaa.org/public/tcm/uchicago or calling 800-842-2252 tospeak with a TIAA representative.The University has the right to add other investment funds and to remove any existing investmentfunds.Failure to elect your investment fundsIf you do not specify the investment funds in which you want your Employee Contributions andUniversity Contributions invested, Employee Contributions and University Contributions will beautomatically invested in an age-appropriate retirement age target date fund.You can change your investment fund allocationsYou may change your investment elections any time at no charge. Y
Contributory Retirement Plan ("CRP") as it pertains to current and former University employees and their beneficiaries on or after August 28, 2019. The University of Chicago Medical Center (the "Medical Center") established a separate Contributory Retirement Plan ("Medical Center's CRP") for the benefit of its eligible employees.
