Skip to main content

Pension Plan Funding Performance

The university's pension plan (the Retirement, Disability and Death Benefit Plan, referred to as "the Plan") is in good health. Members of the Defined Benefit Plan (DB Plan) and Hybrid Plan, who have a pension benefit under the Plan, can count on receiving the benefits they’ve earned.

The university takes its fiduciary responsibility very seriously and will never waiver from that commitment.

From S&P:

“In our view, management remains very proactive in handling its pension plan” S&P Global Ratings, 2022

Fiscally sound plan

  • Financial obligations to all pensioners are consistently fulfilled by the university. 
  • The Plan was 80% funded on an actuarial basis as of FY21, above the national average for public plans.
  • Full actuarial-determined contributions are made to the Plan each year by the university. 
    • For plan year 2021, employees contributed $14M. The university contributed $119M, meeting the annual required contribution described in CRR Section 530.010: Retirement, Disability and Death Benefit Plan.
    • For a more in-depth look at how the university determines its funding requirements for the Plan, consult the annual Actuarial Valuation and Review (coming soon).
  • The university regularly reviews the reliability of its actuarial assumptions and policies. 

Investment transparency

Review the latest quarterly Investment Performance Report (PDF) to learn more about performance, investment targets, membership and more.

The university’s retirement plan assets are managed in a manner that maximizes returns while attempting to minimize losses during adverse economic and market events, with an overall appetite for risk governed by the Plan’s liability structure and the need to make promised benefit payments to members over time.

These investment objectives are accomplished through an investment portfolio that seeks meaningful diversification of assets, with investments across public and private equity, U.S. Treasuries, U.S. Treasury Inflation-Protected Securities, private debt, real estate and commodities.

The current asset allocation strategy for retirement plan assets assumes a 7% long-term return.

The investment policy for the Plan can be found in CRR Section 140.015: Investment Policy for Retirement, Disability and Death Benefit Plan.


Funding sources

The funding formula for the Plan is contributions + investment income = benefits paid.

Both the university and the individual active employee contribute to the Plan during the employee's service with the university. The university invests these combined contributions to earn investment income to cover the future benefits of all members in the Plan.

At retirement, a member is paid in keeping with the Plan provisions, which considers elements such as length of service and the individual's salary earned over time. The payment obligation to members in the Plan resides with the university.


Retirement resources

The Office of Human Resources is available to assist members of the Plan in understanding their benefits. Members are encouraged to visit the pension benefits portal to run estimates or contact the HR Service Center for additional support.

Fidelity, the university's voluntary retirement plan administrator, offers free virtual or in-person one-on-one consultations with dedicated Workplace Financial Consultants to assist with basic financial planning questions or getting started with retirement savings in addition to pension benefits.

Human Resources also offers retirement seminars to help members understand the university's core and voluntary retirement plans.

Reviewed 2023-05-22


Notice of Nondiscrimination

If you speak another language, assistance services, free of charge, are available to you. Call UnitedHealthcare at 1-844-634-1237 for translation assistance.

Español   繁體中文   Tiếng Việt   Srpsko-hrvatski   Deutsch   العربية   Русский   한국어  
Français   Tagalog   Deitsch   فارسی   Oroomiffa   Português   አማርኛ

UnitedHealthcare’s Transparency in Coverage (exit UM System site)