Defined Contribution Plan Questions

Can I make changes to my Defined Contribution Plan account only during annual enrollment in the spring?

No. Retirement accounts are flexible. You may make changes to your retirement accounts year round. Contact the Benefits Office for details. Norman OUHSC Tulsa

How old do I have to be before I can receive my money?

An employee must participate in the Defined Contribution Plan for three years or longer to "own" the funds. Non-vested funds are returned to the university. If DCP funds are vested, the balance may remain in the account and continue to grow.

What happens to my money if I leave before retirement age?

You have the additional options of a withdrawal or a transfer of these funds to a qualified IRA. If funds are withdrawn, taxes will be deducted, as DCP funds are not taxed at the time they are put in your account. Any early withdrawal tax penalties will be deducted for withdrawing funds prior to age 59 ½. If you are retired, federal law generally requires that you start drawing a minimum amount from your funds by April 1st of the year after you reach 70 ½.

When am I eligible to draw my money and how do I receive it? A lump sum, every month, every year?

There are many retirement income options to choose. When choosing the best option for your retirement income it is advisable to discuss these issues with a customer service counselor from your retirement investment company and/or a retirement planner.

DCP funds can be withdrawn from your account as a lump sum upon vesting and termination of employment from the University of Oklahoma.
DCP funds can be rolled-over to another qualified IRA or possibly into another 401(a) account
Depending upon how DCP funds have been invested, a lifetime annuity may be established to provide a set amount of retirement income for life.
A systematic withdrawal can be established to receive a set amount of income for a period of time. Contact your investment company for the withdrawal paperwork.
Distributions made upon separation from service will be subject to taxes. Any early withdrawal tax penalties for withdrawing funds prior to age 59 ½ will be deducted, as well.

Can I withdraw funds while I am working at OU?

No. According to law, funds in the OU Defined Contribution Plan can not be withdrawn for any reason while you are employed at the University of Oklahoma.

May I borrow against my DCP funds?

No, the university does not offer this service as part of the DCP.

Can I roll over other money into this account while employed at OU?

No. This plan has a delayed vesting and is employer contributions only.

Can I move my money from one company to another?

Yes. To re-direct your retirement money as of a certain date to another company, you must fill out the appropriate OU form. For DCP, you would use the form Application - University of Oklahoma - Defined Contribution Plan. This form is located in your benefits Guide, on our Web site, as well as in the Employee Benefits Office. In addition, if this is the first time you have invested in a certain company while employed at OU, you must also complete that specific company's enrollment form. Enrollment forms for all four DCP companies are located in the Employee Benefits Office, as well as on the web site. You may also transfer retirement money that is currently invested in one company to another company.

What do you mean by receiving an annuity? Is that better than a lump sum?

Choosing a lifetime annuity is a contract that provides a specific lifetime income based on your fund balance. Each situation is different and is advisable to explore all your options before making any decision regarding your retirement income. We have information regarding choosing retirement income in the Employee Benefits Office or contact your investment company.

What happens to my money if I die? Will my spouse receive these funds and when?

Your money will be disbursed to your designated beneficiary. It is extremely important to keep your primary and contingent beneficiaries current. If death occurs after retirement, your beneficiary(ies) will receive their benefit according to elections you made at the time of retirement.

Can the university give me advice on where to invest my funds?

We can answer general questions. However, we cannot recommend one company over another, nor can we give advice on investing in a specific fund. We do provide historical information on investment performance, and can answer many questions on types of investments.