As a member of Purdue Global’s Faculty or Staff, you are eligible to begin accumulating savings in a part of defined contribution plans that are flexible, tax efficient and designed to help give you a good foundation for the years ahead.

Defined contribution plans help allow you to accumulate retirement savings throughout your working life. You can roll over eligible savings from a previous Employer and/or take your vested account balance with you if you leave the University. The investment options available give you the flexibility to select from a range of more conservative to more aggressive funds. You can develop a well-diversified portfolio that reflects your situation or you may be more comfortable with a target-date fund that provides a mix of investments based on your age and general retirement date estimate.

The two parts of the plan work together:

Only Purdue Global will make contributions to the 403(b) Plan. A 3% core contribution will be made for employees. Additionally, a matching contribution of up to 4% will be made to the 403(b) Plan for participants contributing up to 4% to the 457(b) Plan, for a total potential Purdue Global contribution of 7%. Participants are 100% vested in these contributions after three (3) years of employment.

Please note - Faculty and staff transitioning from Kaplan to Purdue Global will receive service credit toward vesting that includes Kaplan employment period prior to Change of Control Date.

Funds contributed by the University are vested after you complete three years of service.

Full and part-time employees are eligible to save for retirement in the 457(b) Plan, deferring compensation to the future, lowering current taxable income and offering potential tax-deferred growth. Full-time employees who take no action will be automatically enrolled in the 457(b) Plan at a 6% pre-tax contribution rate after 30 days of employment.

Funds you contribute to the Voluntary Retirement Savings plan are immediately vested.

You can enroll online at any time.

To help you meet your investment goals, the Plan offers you a range of options. You can select a mix of investment options that best suits your goals, time horizon, and risk tolerance. The many investment options available through the Plan include conservative, moderately conservative, and aggressive funds. A complete description of the Plan’s investment options and their performance, as well as planning tools to help you choose an appropriate mix, are available online.

You can choose your investment allocations across all tiers that are offered in your plan, and you can reallocate your investment allocations as often as you would like. If you have questions regarding your investment allocations, you may want to consider scheduling a confidential consultation. You can schedule an appointment online, or by calling 800-642-7131.

We encourage you to take an active role in the Purdue Global Retirement Plans and choose investment options that best suit your goals, time horizon, and risk tolerance. If you do not select specific investment options in the Plan, your contributions will be invested in the Vanguard Target Retirement Fund with the target retirement date closest to the year you might retire, based on your current age and assuming a retirement age of 65, at the direction of Purdue Global.

If no date of birth or an invalid date of birth is on file at Fidelity your contributions may be invested in the Vanguard Target Retirement Income Fund. More information about the Vanguard Target Retirement Fund can be found online.

Target Date Funds are an asset mix of stocks, bonds and other investments that automatically becomes more conservative as the fund approaches its target retirement date and beyond. Principal invested is not guaranteed.

For those desiring the most investment flexibility and choice, the Plan offers Fidelity BrokerageLink^®, a self-directed brokerage account, which provides you with the opportunity to select from thousands of investment options beyond those offered in the standard plan lineup. More information about BrokerageLink^®, including an overview, the commission schedule, and a fact sheet that outlines the Plan-level restrictions and other settings, is available online at NetBenefits. Click on "Quick Links," then select "BrokerageLink."

Your voluntary plan offers you a Roth contribution option. A Roth contribution to your retirement savings plan allows you to make after-tax contributions and take any associated earnings completely tax free at retirement – as long as the distribution is a qualified one. A qualified distribution, in this case, is one that is taken at least five tax years after your first Roth 403(b) contribution and after you have attained age 59½.

Roth contributions are also matched by the University.

Through automatic payroll deduction, you can contribute between 1% and 85% of your eligible pay on a pretax and/or Roth basis, up to the annual IRS dollar limits.

The IRS contribution limit for 2025 is $23,500.

If you have reached age 50 or will reach 50 during the calendar year January 1 – December 31 and are making the maximum plan or IRS pretax contribution, you may make an additional “catch-up” contribution each pay period. Going forward, catch-up contribution limits will be subject to cost of living adjustments (COLAs) in $500 increments.

Withdrawals from the Plan are generally permitted when you terminate your employment, retire, reach age 59½, or experience an unforeseen emergency as defined by your Plan.

Distributions are subject to a mandatory 20% federal tax withholding and if applicable, mandatory state taxes unless you are rolling over all or a portion of your account into an individual retirement account (IRA) or another employer’s retirement Plan. The rollover portion is not subject to taxes until a distribution is made from the account. If you are under age 59½, the taxable portion of your withdrawal is also subject to a 10% early withdrawal penalty, unless you qualify for an exception to this rule.

Learn more about and/or request a withdrawal online, or by calling the Fidelity Investments Service Center at 800-343-0860.

Learn more or model a withdrawal before making a request. Go to www.NetBenefits.com > Quick Links > Loans & Withdrawals or call Fidelity Investments Service Center at 800-343-0860.

Although your Plan account is intended for the future, you may borrow from your account for several reasons.

Generally, the Plan allows you to borrow up to 50% of your vested account balance. The minimum loan amount is $1,000 and a loan must not exceed $50,000. You then pay the money back into your account, plus interest, through automatic payments from your bank account. You may have only one loan outstanding at a time.

Any outstanding loan balances over the previous 12 months may reduce the amount you have available to borrow. The cost to initiate a loan is $50, and there is a quarterly maintenance fee of $6.25. The initiation and maintenance fees will be deducted directly from your individual Plan account. If you fail to repay your loan (based on the original terms of the loan), it will be considered in "default" and treated as a distribution, making it subject to income tax and possibly a 10% early withdrawal penalty. If you default on a loan from the Plan, you will not be able to request a new loan in the future. Be sure you understand the Plan guidelines and impact of taking a loan before you initiate a loan from your Plan account.

Learn more or model a loan before making a request. Go to www.NetBenefits.com > Quick Links > Loans & Withdrawals or call Fidelity Investments Service Center at 800-343-0860.

You are permitted to roll over eligible contributions from a 401(k) plan, another 403(b) plan or a governmental 457(b) retirement plan account or eligible pretax contributions from conduit individual retirement accounts (IRAs). A conduit IRA is one that contains only money rolled over from an employer-sponsored retirement plan that has not been mixed with regular IRA contributions.

Be sure to consider all your available options and the applicable fees and features of each before moving your retirement assets.

Fidelity’s Online Beneficiaries Service, offers a straightforward, convenient process that takes just minutes. To make your elections, click on the “Profile” icon, then select “Beneficiaries” and follow the online instructions.

You can schedule a confidential consultation by calling Fidelity at 800-642-7131.