DCP plan

Take advantage today

All Academic Faculty, Administrative Professionals, Post Doctoral Fellows, Veterinary Interns and Clinical Psychology Interns appointed on or after April 1, 1993, are required as a condition of employment under Colorado law to participate in either the University's Defined Contribution plan (DCP) for retirement or, in very limited cases, in the Public Employees' Retirement Plan (PERA) of Colorado, a defined benefit plan.

Starting early has its advantages

Employee contributions
You are required to contribute 8% of your Covered Monthly Salary on a tax-deferred basis to the Defined Contribution Plan.

Employer contributions
The University will contribute an amount equal to 12% of your covered monthly salary to the DCP accounts of Regular and Special appointees of half-time or greater from date of appointment, and Temporary Academic Faculty and Administrative Professionals, Post Doctoral Fellows, Veterinary Interns, and Clinical Psychology Interns of half-time or greater appointment after one year of continuous service at that level. 

To complete one year of service, a 9-month employee must complete two consecutive semesters of continuous 1/2 time or greater employment (excluding summer term) and a 12-month employee must complete 12 months of 1/2 time or greater employment. An interruption in continuous appointment requires the eligible employee to complete one year of service again before CSU will provide the employer match to the DCP.
 

Vesting
You are always 100% vested in your employee contributions and employer contributions.

Accessing your money before retirement

Withdrawals
Termination prior to age 55 
If you leave CSU prior to "normal" retirement age of 55 for any reason other than death or disability:

• You can leave your account balance in the DCP until age 55 or later. If you choose this option, you continue to have full control over the investment of your account balance according to the provisions of the DCP. When you reach age 55, you can access, depending upon the DCP investment company and type of investment you have selected, your entire account balance in a lump sum, in installment payments, or you can convert your account balance to an annuity which provides monthly payments for life.  
  
• You can roll your account balance into another IRS eligible, tax qualified plan. Other eligible tax-qualified plans may include another employer's 401(a) or 401(k) plan, or an Individual Retirement Account (IRA). In order to avoid tax penalties or federal income tax withholding, you must roll your account balance directly from your DCP investment company to another tax-qualified plan
• If your total account balance is $10,000 or less, you have immediate access to your funds.
  

Termination at or after age 55
When you leave CSU at or after age 55, you are entitled to your entire DCP account balance. Depending on the DCP investment company and the type of investment you have selected, you may be able to take your account balance as a lump sum cash payment, in installment payments, or convert it to an annuity which provides monthly payments for life. You can also leave it with the investment company for a distribution at a later date subject to certain limitations established under Federal Tax Law; or you can roll your account balance into another IRS-eligible, tax qualified plan. Taxes are payable upon withdrawal and a 10% penalty may apply to withdrawals prior to age 59½.

Early withdrawal penalty does not apply in certain circumstances such as:

• Attainment of age 59½.
  
• Death or disability.
  
• Separation from service at age 55 or older.
• Substantially equal periodic payments over life expectancy taken for a period of five years or attainment of age 59½, whichever is longer.

Loans
You may take advantage of a tax-free loan from your Corebridge account. This provision gives you access to cash without permanently reducing the value of your accounts. It is especially attractive since it's not subject to federal withdrawal restrictions imposed on plan distributions prior to age 59½. Your financial professional can provide information regarding maximum loan amounts and loan repayment terms. Keep in mind, however, defaulted loan amounts will be taxed as ordinary income and tax penalties may apply.