Retirement
Human Resources
Overview
Â鶹Դ´ employees are required to participate in a mandatory retirement program based on their employment classification. These programs provide retirement income through a combination of employee and employer contributions.
In addition to mandatory plans, employees may choose to participate in voluntary retirement savings programs to supplement their retirement income.
Mandatory Retirement Plans
Academic & Administrative Faculty
Academic and administrative faculty working at least 50% full-time equivalent (FTE) are required to enroll in the Â鶹Դ´ System of Higher Education (NSHE) Retirement Plan Alternative (RPA) unless they are already members of the Public Employees’ Retirement System of Â鶹Դ´ (PERS) at the time of hire.
Key Details:
- Employee Contribution: 19.25% of gross salary
- University Contribution: 19.25% of gross salary
- Contributions are deducted automatically from each paycheck on a tax-deferred basis
- Account managed by , with online access for account management and planning
This plan is designed to provide long-term retirement savings through consistent contributions over the course of employment.
Classified Staff
Classified employees participate in the .
Contribution Options:
Classified employees may choose between two contribution structures:
Employee/Employer Contribution Plan
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- Employees contribute 19.25% of gross salary, and the university contributes 19.25%.
Employer-Pay Plan
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- The university pays the full retirement contribution on behalf of the employee. As a result, the employee’s salary is reduced.
Vesting:
- Classified employees are vested after five years of service and become eligible for retirement benefits. Withdrawal of employee
contributions is only available upon separation from service and only if contributions were made under the Employee and
Employer Plan.
Retirement Eligibility:
A classified employee may retire and receive benefits once one of the following criteria is met:
If hired prior to January 1, 2010
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- Age 65 with five years of service
- Age 60 with ten years of service
- Any age with 30 years of service
If hired on or after January 1, 2010
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- Age 65 with five years of service
- Age 62 with ten years of service
- Any age with 30 years of service
If hired on or after January 1, 2015
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- Age 65 with five years of service
- Age 62 with ten years of service
- Age 55 with 30 years of service
- Any age with 33 one third years of service
Letter of Appointment
Letter of Appointment employees do not participate in Social Security or the university mandatory retirement plan. Instead, participation in the FICA Alternative Retirement Plan is required.
Under this plan:
- 7.5% of total salary is withheld on a pretax basis
- Contributions are deposited into a guaranteed interest-bearing account in the employee’s name
- No additional employee or employer contributions are permitted
- The plan is administered by the Â鶹Դ´ Deferred Compensation Program
- VOYA serves as the sole record keeper
- Employees can manage their accounts through the
Letter of Appointment employees may withdraw their account balance after separating from service and being off payroll for at least one month. Withdrawals are subject to applicable taxes. Assistance is available through Â鶹Դ´ Deferred Compensation customer service or the VOYA website.
Voluntary Retirement Options
All eligible employees may participate in voluntary retirement savings programs to supplement their mandatory retirement plan.
Available Options:
Key Features:
- Contributions are made on a pre-tax basis
- Employees may select contribution amounts based on personal financial goals
- Funds are invested and grow over time to support retirement income
Participation in voluntary plans is optional and may be adjusted at any time, subject to plan rules.
Retirement Planning Support
Employees are encouraged to review their retirement options, manage their accounts through the appropriate provider portal, and take advantage of available retirement planning tools or training sessions.
For questions about retirement benefits, contact Human Resources.