HR Home >> Benefits >> Retirement Plans >> Retirement Plan FAQs >> ERP FAQ

RETIREMENT PLANS

ERP FAQ

• As a biweekly employee, am I covered under a retirement plan? Can you describe the plan to me?
• How much do I have to contribute? Does Duke Contribute?
• What is the earliest I can retire and receive a benefit from Duke?
• How can I get an estimate of what I will receive from the plan?
• Do I have to meet the Rule of 75 to receive a benefit from the retirement plan?
• When I retire will I be paid for my sick pay/COB balance?
• I'm leaving Duke. Am I vested? Am I eligible for a lump sum payment?
• What happens to my retirement if I become disabled? Can I draw my retirement and disability at the same time?
• What happens to my biweekly retirement if I transfer to a monthly position?
• Where can I get more information?

As a biweekly employee, am I covered under a retirement plan? Can you describe the plan to me?

• You may be covered under a pension plan called the Employees' Retirement Plan, referred to as ERP.
• You automatically become a plan member after working 1,000 hours in your first 12 months of employment and are at least age 21.
• After becoming a plan member, each fiscal year you work 1,000 hours or more you will receive a year of credit under the plan. The fiscal year is July to June.
• This plan is called a defined benefit plan. This means that the benefit you receive from the plan is based on a formula. The factors that determine your benefit are: your years of credit, your average final salary, and your age.
• You are entitled to a benefit from the plan, or vested, after completing 5 years of continuous service. The plan defines a year of continuous service as completing 1,000 hours or more in a fiscal year.
• The ERP is one piece of your retirement plan; you are also eligible to participate in the Savings for Retirement Plan (403(b)).

How much do I have to contribute? Does Duke Contribute?

• This plan is paid for entirely by Duke. You do not have to contribute to the plan.

What is the earliest I can retire and receive a benefit from Duke?

• You can draw a reduced benefit from the plan at age 45 with 15 years of credited service under the plan.
• You receive full benefits at normal retirement, age 65.

How can I get an estimate of what I will receive from the plan?

• You will generally receive an estimate of your ERP benefit in your Annual Benefits Statement that is mailed to you each spring, or
• You can complete a Request for Benefit Estimate Information Form.

Do I have to meet the Rule of 75 to receive a benefit from the retirement plan?

• No. The Rule of 75 is only used to determine if you can continue your health insurance, dental insurance, and tuition grant benefits as a retiree. The retirement plan has its own rules.

When I retire will I be paid for my sick pay/COB balance?

• No. You are not paid for your sick pay/COB balance. It is used in calculating your final retirement benefit. Your years of credited service are increased by the number of unused hours. [Example: You have 20 years of credited service and 1,000 hours of sick/COB time. When your final calculation is done we would use 20.481. (1000 ÷ 2080=.481) years of credited service.] It is not used to determine your eligibility for early retirement or to help you retire earlier.

I'm leaving Duke. Am I vested? Am I eligible for a lump sum payment?

• You are vested after 5 years of continuous service. The plan defines one year of continuous service as completing 1,000 hours or more in a fiscal year.
• To be entitled to a lump sum payment the total value of your retirement must be below $10,000. The value of your retirement is not determined until after you have terminated your employment. If you are eligible for a benefit from the plan, either a lump sum payment or a monthly benefit, you will be contacted through the mail within 120 days after your termination notice is processed. To ensure you receive this information in a timely manner, please notify your payroll clerk of a change of address before you leave.
• If you are eligible for a lump sum payment and elect to receive the benefit as a payment, 20% federal tax is withheld automatically. You must elect to have state taxes withheld or not. If you are younger than 59 1/2, there is a 10% penalty for early withdrawal you will pay when you file your taxes. If you rollover the payment, no taxes are deducted and there is no penalty for early withdrawal.

What happens to my retirement if I become disabled? Can I draw my retirement and disability at the same time?

• If you become disabled, and apply for Long Term Disability at Duke and are approved, you will continue to earn credits under the plan as if you continued working at your same rate of pay and work schedule.
• You cannot draw retirement and disability at the same time.

What happens to my biweekly retirement if I transfer to a monthly position?

• When you transfer to a monthly position, you stop earning credit under ERP and become eligible to participate in the Faculty and Staff Retirement Plan. Your service as a monthly employee is used for vesting and eligibility for early retirement, but that time is not used in calculating your benefit amount from the biweekly plan.

Where can I get more information?

• Refer to the Summary Plan Description for more detailed information.

This web page is not intended to substitute for an official Plan Document. If there is a conflict between this web page and the official Plan Document, the Plan Document will govern in all cases as the official Plan text and trust agreement govern the operations of the Plan and payment of all benefits.

Back to Top

hr@duke.edu