Retirement Contribution Updates Coming in July

By Ben Boulden

We are in the final year of the phase-in to a required employee retirement contribution of 5%. This affects employees who participate in the UA Retirement Plan through TIAA or Fidelity and are eligible for the employer match. The employee required contribution will increase from 4% to 5% in July. This will affect the July 16th bi-weekly and July 30th monthly paychecks. This change will have no impact on the total percent that most employees contribute. Rather, we will automatically reduce your VOLUNTARY contribution by 1% and move that 1% to the REQUIRED contribution.

Examples:

If Today – You contribute 6% VOLUNTARY + 4% REQUIRED for a total of 10% (which is the amount needed to receive the full 10% University match).

Then July – You will automatically change to 5% VOLUNTARY + 5% REQUIRED. Your total remains 10% and you will still receive the 10% match.

If Today – You contribute 1% VOLUNTARY +4% REQUIRED for a total of 5%.

Then July – You will automatically change to 0% VOLUNTARY + 5% REQUIRED. Your total contribution remains 5%.

If Today – You only contribute the 4% REQUIRED.

Then July – Your REQUIRED contribution will increase to 5%. You will see an increased amount deducted from your paycheck to show the additional 1% contribution.

These changes require no action on your part. However, you can elect to change your VOLUNTARY contribution at any time. The paper form can be found on our website. You can also elect to change how you invest your retirement savings by contacting Fidelity and/or TIAA any time — either by logging into your account via their websites or by calling them. Visit our website for additional information.