HR Policy and Procedure #97 University Retirement Plan Revised May 11, 2026

Purpose
This policy outlines eligibility, participation, contributions, vesting, investment options, and administrative provisions for the University’s retirement plans, which are available to designated regular and temporary employees under the University Administrative Regulations.

Policy

The University must have plan documents for each retirement plan as required by law. If language in this policy and the plan document conflict because of changes in state or federal law, the plan document governs.

1. This Policy applies to all employees of the University unless otherwise specified.
2. Retirement Groups

   1. Eligibility

      The following employees are eligible to participate in the University retirement plan:

      1. University Participants
         1. Regular full-time employment, as defined by HRP&P #4.0, with the University or, upon approval of the Board of Trustees, with an agency for which the University serves as fiscal and payroll agent.
         2. Employment in a position not covered by the United States Civil Service Retirement System (CSRS) or the Federal Employees Retirement System (FERS).
      2. Civil Service Retirement System (CSRS) and Federal Employees Retirement System (FERS) Participants

   2. Participation Requirements

      Mandatory participation is based on hire date:

      Mandatory Participation Based on Hire Date

      Hire Date	Mandatory Participation
      Before July 1, 2023*	At age 30
      July 1, 2023 – June 30, 2024*	At age 25
      On or after July 1, 2024*	Immediately

      *Unless eligible for CSRS or FERS.

      1. For employees eligible for CSRS or FERS, participation in the University retirement plan is voluntary.
      2. Participation is voluntary for all other eligible employees up to the age of mandatory participation. Employees who enroll under the voluntary provisions must make a one-time, irrevocable salary reduction agreement and may not withdraw from the University’s retirement plan while eligible.
3. Contributions and Vesting

   1. Contribution Schedule

      Employees subject to mandatory participation must contribute on a pre-tax salary reduction basis according to the schedule below, except for those contributing on an after-tax basis prior to December 22, 1986.

      Retirement Plan Contribution Schedule

      Participant Group	Employee Contribution	University Contribution	Total Contribution
      University Participants (non-FERS)	5%	10%	15%
      University Exceptional Contribution Period (July 1, 2020 – June 30, 2021)	5%	5%	10%
      FERS Participants	0.8%	2%	2.8%
      FERS Exceptional Contribution Period (July 1, 2020 – June 30, 2021)	0.8%	1%	1.8%

   2. Contributions for Faculty on Interim

      Contributions apply to compensation paid for interim service periods between regular assignments, as defined in Administrative Regulation 3:6.

   3. Plans for Excess Limits or Contributions

      Employees who reach IRS 403(b) limits must participate in the 401(a) Plan. Employees who reach 401(a) limits must participate in the Supplemental 403(b) and/or 415(m) Plan.

   4. Voluntary Contributions

      Employees may make voluntary contributions to 403(b) and 457(b) plans up to the annual contribution limit. Contributions may be made on a pre-tax and/or after-tax Roth basis.

   5. Vesting
      • Employee contributions are immediately vested.
      • Employer contributions vest after three (3) years of continuous service for employees hired on or after January 1, 2013. Service credit toward vesting includes prior service with an acquired employer.
4. Omnibus Budget Reconciliation Act of 1993 (OBRA ’93) Limits
   1. The plan year begins on January 1 and ends on December 31 of the same calendar year.
   2. The University withholds employee contributions from salary payments, adds University contributions, and remits the combined amount to the participant’s selected provider(s).
   3. Annual compensation recognized under the plan is subject to IRS limits under Internal Revenue Code §401(a)(17).
   4. See appendix.
5. Contribution and Investment Options

   1. Participants direct how contributions are allocated among approved retirement plan carrier(s) and investment options, including the percentage to each.

      Participants who do not make an election within the first 30 days of enrollment will be defaulted into the approved default account.

   2. Participants may change their contribution allocations or investment options by completing the appropriate forms with the retirement plan carrier(s).

6. Termination of Contributions

   Retirement plan contributions will terminate upon an employee’s retirement or cessation of regular full-time employment.

7. Retirement Dates
   1. Early retirement is defined as retirement prior to age 65.

      1. Eligibility requires:

         • A minimum of 15 years of continuous full-time service;
         • The combination of the employee’s age and years of service equaling at least 75; and
         • Regular part-time service will be counted on a prorated basis.

         Example: Jane Doe worked .90 FTE from August 15, 2005, until August 14, 2025, and turned 59 years old on August 14, 2025. Her service time is 18 years (20 years × .90). Jane was eligible to retire since the combination was at least 75 years. 18 years’ service time + 59 years of age = 77 years.

         Employees must provide written notification through normal administrative channels to the appropriate senior administrator at least three (3) months in advance of the desired retirement date.

      2. Early retirees may be eligible to:
         • Continue participation in University health plans. See HRP&P #93.0 and #94.0.
         • Receive a payout of unused temporary disability leave. See HRP&P #87.
   2. Normal retirement is the date an employee attains age 65.

   3. Mandatory Retirement

      The University does not have a mandatory retirement date for employees, except for law enforcement officers. The mandatory retirement date for University law enforcement officers is age 70.

8. Retirement Benefits

   1. Benefits through Retirement Plan Carriers

      Upon separation of service, retirement, or participation in the Phased Retirement Program (AR 3:2), participants may activate any or all retirement benefits in accordance with the retirement plan carrier’s procedures. Available options may include lump sum, partial lump sum, annuitized, or non-annuitized methods of withdrawal.

   2. Benefits in Case of Death before Retirement

      If a participant dies before commencing retirement benefits, the designated beneficiary(ies) will receive an income or lump-sum benefit, as provided by the retirement plan carrier.

9. Contributions during Leave of Absence with Pay

   Participants on approved leave with pay must continue to make employee contributions and will receive University contributions based on the salary paid through University payroll. Contributions will be made on the actual salary paid, not to exceed the employee’s annual base salary.

10. Contributions during Scholarly Fellowship, Entrepreneurial, or Uniformed Services Leave

    Participants on approved Scholarly Fellowship Leave, Entrepreneurial Leave, or Uniformed Services Leave (HRP&P #75) may, upon return, make up missed employee contributions and receive corresponding University contributions. These contributions will be based on the employee’s base salary at the time of leave.

11. Employment beyond Retirement

    Employees who retire under this policy are not eligible for reemployment except upon specific prior approval of the Board of Trustees. Retired employees who are reemployed under this provision are considered temporary employees.

    • The Provost is authorized to establish fee schedules for reemployed faculty.
    • Human Resources is authorized to establish fee schedules for all other reemployed staff. See HRP&P #17.

12. Loans and Hardship Withdrawals

    Employees may obtain loans or take hardship withdrawals from their retirement accounts to the extent permitted under the applicable plan document and in accordance with the rules established by the Internal Revenue Service (IRS).

13. Change in Retirement Plan Carrier(s)

    The Board of Trustees reserves the right, in its sole discretion, to remove, add, or otherwise modify the number of retirement plan carrier(s). Written notice will be provided to the affected carrier(s).

    1. If the Board directs that all accounts with an affected carrier be transferred to another approved carrier, or if a participant voluntarily elects to exchange retirement savings within the Plan, the following requirements must be satisfied:
       1. The participant’s accumulated benefit under the employer-sponsored retirement savings account immediately after the exchange must at least equal the accumulated benefit under such contract/account immediately before the exchange.
       2. To the extent the exchanged retirement savings is subject to distribution restrictions under applicable sections of the Internal Revenue Code (IRC), as amended, the new recordkeeper must impose distribution restrictions that are no less stringent.
       3. The University must enter into an agreement with the issuer of the new contract requiring both parties to provide each other with the information necessary to ensure the contract satisfies applicable provisions of the IRC.

Appendix: Omnibus Budget Reconciliation Act of 1993 (OBRA ’93) Limits

1. For plan years beginning on or after January 1, 1996:
   1. The annual compensation considered under the plan must not exceed the OBRA ’93 annual maximum includable compensation limit.
   2. This limit is adjusted annually by the Internal Revenue Service (IRS) for cost-of-living increases under section 401(a)(17)(B) of the Internal Revenue Code.
   3. The cost-of-living adjustment for a given calendar year applies to any compensation determination period beginning in that year, provided the determination period does not exceed 12 months.
2. Any reference in this plan to the limitation under section 401(a)(17) of the Internal Revenue Code refers to the OBRA ’93 annual maximum includable compensation limit.
3. Employees who became participants in the University’s retirement plan before the first day of the plan year beginning on or after January 1, 1996, are not subject to this annual limit.