RETIREMENT INCOME-Delaware State Employee Pension Plan (SEPP)

Human Resources

The Delaware State Employee Pension Plan (SEPP), for full and part-time benefits-eligible University employees in non-exempt positions, provides retirement income and access to benefits such as medical, dental and vision benefits, once vested. It is mandated that covered University non-exempt (salaried and hourly) staff participate upon date of hire.

Participating employees contribute 5% on earnings (or 3%, if pension-creditable service began prior to 1/1/2012), after the first $6,000 in earnings each year. The University also contributes to the SEPP on participating employees’ behalf.

Eligibility: Full and part-time staff who participate in the State Employees' Pension Plan (SEPP)

Plan Administrator: State of Delaware Office of Pensions

Who Can Use this Benefit: Benefits-eligible staff

Benefit: Employees who satisfy the SEPP age and service criteria are eligible to apply for retirement income through the Office of Pensions. SEPP recipients may also apply for health, dental, and vision insurance as well as a death benefit through the Office of Pensions.

Cost: Participants in the State Employees’ Pension Plan are subject to the age and service cost sharing requirements of that Plan, through which they receive their monthly pension and health insurance coverage in retirement.

Office of Pensions Age/Service Requirements to Retire Chart

Participants in the State Employees’ Pension Plan are subject to the age and service cost sharing requirements of that Plan, through which they receive their monthly pension and health insurance coverage in retirement.

Hired 7/1991 - 12/31/2011	Hired 1/1/2012 and after
Full Pension: any age and 30 years service age 60 and 15 years service age 62 and 5 years service	Full Pension: any age and 30 years service age 60 and 20 years service age 65 and 10 years service
Reduced Pension (Early Retirement): any age and 25 years service age 55 and 15 years service reduction factor = 0.2% Must have 5 consecutive years of service	Reduced Pension (Early Retirement): any age and 25 years service age 55 and 15 years service reduction factor = 0.4% Must have 5 consecutive years of service

Resources: For additional information, including a pension calculator, frequently asked questions, rules & regulations, and details about benefits, see the SEPP website.

Additional Information: To begin the SEPP income and benefits application process, please contact Human Resources at least five months in advance of your proposed retirement date.

UD Pensioners who also meet University of Delaware criteria for retirement eligibility have access to participate in additional benefits, including retiree-paid University group life insurance, educational benefits, UD ID card, 75 Wellness Dollars each fiscal year toward approved Wellness activities and parking privileges for retirees.

Effective January 1, 2024, individuals will be subject to the Rule of 75 eligibility criteria:

any age and 30 benefits-eligible years of service
age and service when combined equal 75 (must be at least age 55 when combined with service; must have at least 10 benefits-eligible years of service when combined with age)

Plan Administrator: University of Delaware through TIAA.

Eligibility: All University employees, with the exception of student workers.

Vesting: Participants are immediately 100% vested in their contributions.

University Contributions: There is no University match on voluntary contributions.

Enrollment: TIAA is the administrative service provider for the University of Delaware. To enroll in or make changes to your 403(b) retirement plan, visit the TIAA portal.

This plan is not subject to an open enrollment period. Employees may enroll and change elections at any point in the year.

Contribution Limitations: IRS

Loans, Hardship Withdrawals, Retirement, In-Service Distributions: Please contact the applicable vendor, TIAA and/or Fidelity Investments for additional information.

TIAA: Website Phone: 800-842-2776

Fidelity Investments (Legacy Accounts): Website Phone: 800-343-0860

Frequently Asked Questions

How do I enroll in the 403(b)?

403(b) Enrollment Instructions

How do I change contribution percentages or investment options?

All contribution and investment option changes are made on the TIAA website: www.tiaa.org/udel

Can I withdraw funds from my 403(b) while I am actively working at UD?

Pease refer to these guidelines to determine if you may be eligible for a withdrawal while active at UD. TIAA can also be of assistance, and can be reached at 800-842-2776.

I am applying for a mortgage, and the mortgage company is asking for withdrawal guidelines. Where can I find this information?

For withdrawal guidelines, please provide this information to your mortgage company. If more information is needed, please contact hrhelp@udel.edu, or call TIAA at 800-842-2776.

How do I update my beneficiaries for my 403(b) and/or 457(b)?

All beneficiary information is retained by TIAA for the 403(b) and 457(b). Please visit the TIAA website to update your beneficiary information: www.tiaa.org/udel.

How do I change my personal information for the 403(b) and/or 457(b)?

For address change, marital status change:

Login to TIAA site: www.tiaa.org/udel
Click on Actions, and Update Your Profile
Click on Personal Information, and Edit

For name change:

Login: www.tiaa.org/udel
Click on the search icon
Select Name Change
Instructions will be displayed for the participant to complete all of the details of their name change.

When do I need to take a Required Minimum Distribution (RMD)?

For information on Required Minimum Distributions, please refer to the IRS guidelines.

Benefits

SEPP Age/Service Requirements

UD Age/Service Requirements

Voluntary 403(B)

The Roth contribution option: Another way to save for retirement

In the University of Delaware 403(b) Retirement Savings Plan, your pretax contributions accumulate tax deferred, and withdrawals are taxable.¹ With the “designated Roth” option, your after-tax, Roth contributions also accumulate tax deferred, but may be taken tax free in a qualified distribution.

Expand

A qualified distribution is one that occurs at least five years after the year of your first Roth contribution and is made either on or after attainment of age 59½, on account of disability, or on or after death. These potentially significant tax benefits are similar to a Roth IRA. However, Roth contributions have higher contribution limits than a Roth IRA. Read more.