Retirement plan rules to change Jan. 1
Beginning Jan. 1, new federal regulations require Stanford Hospital and Stanford University to administer their retirement plans as if they were maintained by the same employer. This means more restrictive rules will apply to retirement plan distributions for employees who switch jobs between the hospital and the university.
For example: Currently, an employee of the university who takes a job at the hospital can withdraw all of his or her money from the Stanford Contributory Retirement Plan (SCRP). Starting in 2009, this will no longer be allowed. The new rule also will apply to Stanford's Tax-Deferred Annuity (TDA) retirement plan and Staff Retirement Annuity Plan (SRAP).
The new IRS regulation requires the university to treat its retirement plans and those offered by Stanford-related employers as belonging to what is being called a "controlled group." And for certain administrative purposes, employees who work for any organization within the group will be treated as if they work for the same employer, according to Stanford Benefits.
The organizations included in the group are Stanford University, Stanford Hospital and Clinics, Lucile Packard Children's Hospital and the Stanford Alumni Association Sierra Programs LLC (including Alpine Chalet).
Employees terminating employment with one of these entities to work for another and who want to request a distribution or start receiving one from their retirement account must do so before Jan. 1. Employees are encouraged to consult with a financial planner before determining what actions to take.
Anyone with questions about TDA or SCRP accounts should call the Stanford Retirement Manager at (888) 793-8733. For questions about SRAP, call 736-2985 or (877) 905-2985 and press option 3.
More information and frequently asked questions are available in the Retirement section of the Stanford Human Resources website at http://hrweb.stanford.edu.