UM Curators Approve New Retirement Plan for New Employees
KANSAS CITY - The University of Missouri Board of Curators approved a new retirement plan at their meeting in Kansas City today for employees hired after Sept. 30, 2012. The retirement plan for new employees after this date is a combination of a defined benefit and defined contribution plan. The current university defined benefit plan for existing employees and retirees remains in effect.
The University of Missouri Board of Curators first voted in June to close the current retirement program to new employees beginning late next year. The current retirement plan for existing employees and retirees will continue. There will be no change in benefits paid at retirement.
The defined benefit part of the plan is similar to the university's existing retirement plan but uses a one percent of pay multiplier. The required employee contribution is identical to that of the current plan. The terms for employee vesting in the defined benefit portion of the plan are also identical to the university's current plan.
The defined contribution portion of the new retirement plan includes two percent of pay contribution by the university to an employee-directed investment account. New employees can make voluntary payments to their defined contribution accounts, which will be completely matched by the university, up to 3 percent of pay.
Investment providers, funds and policies available to new employees and retirees under the defined contribution portion of the new retirement plan will be selected and monitored by a university investment committee.
The retirement plan slated to begin for new employees Oct. 1, 2012.