Voluntary Defined Contribution (DC) Opt-In Program

Employees who requested an election packet by the Jan. 30 deadline, have until April 10 to decide if they want to participate in the DC Opt-In Program by completing and returning the required forms in the election packet.

Election packets will indicate the lump sum value of your pension benefit under the DC Opt-In Program.

Employees who choose to participate in the DC Opt-In Program should review the instructions in the election packet and return the enclosed Transfer Election Form(s) no later than 11:59 PM CT, April 10, 2026. 

Employees who decide not to participate in the DC Opt-In Program do not have to take any action. Your retirement benefits will continue under your current core retirement plan with no changes.

You may wish to consult a financial advisor, certified tax professional or qualified estate planner before making a decision on this voluntary one-time offer. Please note, the University of Missouri and the Milliman Benefits Service Center cannot provide advice regarding your election or participation in the DC Opt-In Program, however the Milliman Benefits Service Center is available to answer any questions you may have regarding the options available to you under the program. 

 

Fidelity Workplace Financial Consultants are available to help you through your decision-making process. Consultations are complimentary and confidential. To speak with a Fidelity Consultant, call 1-800-603-4015 between 7:30 AM – 7:00 PM CT. Virtual and in-person appointments are also available however availability may be limited. Visit the Fidelity Scheduler to reserve an appointment.

In partnership with Fidelity and Milliman, the University provided a webinar series during December and January to help employees learn more about retirement planning and the DC Opt-In Program.  A recording or on-demand version of each of the webinars is available below.

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Understanding the University's Retirement Plans

Presented by the University of Missouri Office of Human Resources. Access the on-demand version of Understanding the University's Retirement Plans on YouTube.

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How to Read Your Personalized Statement

Presented by Milliman. Access the on-demand version of How to Read Your Personalized Statement on YouTube.

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Fundamentals of Retirement Income Planning

Presented by Fidelity. Access the on-demand version of Fundamentals of Retirement Income Planning (exit UM System site).

How you plan for retirement is personal. Understanding your benefits and thinking about your plan for retirement is well worth your time. Here are ways you can get started:

• Learn about your current retirement plan. It’s important to know what your current retirement benefits are and to think about how those benefits fit into your plan for retirement, when considering whether you are interested in exploring the Defined Contribution Plan Opt-In Program.
• Gather all your retirement resources – not only from the university. Go to the Social Security website to download your Social Security statement. Make a list of retirement benefits you have from previous employers and/or your spouse’s retirement benefits, as well as your other savings.
• Look at your plan for retirement. Do you have a plan for when you want to retire and how to get there? Are you on track? Schedule a free one-on-one consultation with Fidelity Workplace Financial Consultant or make time to check in with your own financial advisor.
• Check out the UM System retirement planning checklist for more information.
• Consult Fidelity information on Saving for Retirement (exit UM System site).

Eligible employees with a pension benefit under their core retirement plan (either the DB Plan or the Hybrid Plan), or rehired employees in the DC Plan with a deferred vested pension benefit will have an opportunity to transfer the lump sum value of their pension benefit to the DC Plan during a one-time election window in 2026. Employee participation in the DC Opt-In Program is voluntary.

If an eligible employee chooses to participate in this program, the value of their pension will be converted to a lump sum and transferred to the DC Plan. Going forward, future retirement benefits will be earned under the DC Plan.
The DC Plan Opt-In Program does not make any changes to the DB Plan or the Hybrid Plan. No action is necessary for eligible employees who prefer to remain in their current core retirement plan or for eligible DC Plan participants who wish to retain their deferred vested pension benefit separate from their current DC Plan benefits.

The university's pension plan (the Retirement, Disability and Death Benefit Plan (the “RDD Plan”), referred to as the DB Plan or as the DB component of the Hybrid Plan)) is in good financial health. Members who remain in the DB Plan or the Hybrid Plan can count on receiving the benefits they’ve earned.

Eligible employees will receive more information regarding their options and how the voluntary DC Opt-In Program works, including a personalized statement showing the lump sum value of their pension benefit and comparing the growth of their retirement benefit under the DB Plan or Hybrid Plan with the potential growth of the lump sum value of their pension benefit if that amount were transferred to the DC Plan.

• June 2025: Program approved by the Board of Curators
• October 2025: Program announcement flyer mailed to home address of eligible employees
• December 2025: Eligible employees receive personalized statements to their mailing address outlining benefits and options
• December 2025 – April 2026: Education sessions (webinars, one-on-one, Fidelity support, etc.)
• January 30, 2026: Deadline to request an election packet*
• February 9, 2026 – April 10, 2026: Election window
• By September 1, 2026: The pension benefit of participating employees is converted to a lump sum amount and that amount is transferred to a tax deferred account in the DC Plan, accessible to the participating employees through Fidelity

*Election packets will only be mailed to eligible employees who are interested in the program and request to receive a packet. Requesting a packet does not lock eligible employees into a decision, they will have until the end of the election window to decide if they want to participate by completing and submitting an election packet.

Employees have frequently requested the ability to transfer their pension benefit to a defined contribution plan over the last several years with the implementation of the Hybrid Plan in 2012 and the DC Plan in 2019. Following the successful implementation of the lump sum distribution window for former employees with pension benefits in 2024, the University developed the voluntary DC Opt-In Program for current employees who may prefer to earn their retirement benefits under a defined contribution plan instead of a defined benefit plan.

The DC Opt-In Program is not a voluntary early retirement incentive program (VERIP). The DC Opt-In Program is designed for those who intend to continue University employment but prefer to earn their retirement benefits entirely under a defined contribution plan. The DC Opt-In Program converts the employee’s pension benefit to a lump sum and transfers the amount of the lump sum to the DC Plan.

Participating in the DC Opt-In Program will not change an employee’s access to retiree health insurance.  Employees who choose to participate in the DC Opt-In Program, will have access to retiree health insurance that is available at the time they separate from the University on the same terms as if they had remained in their current retirement plan for as long as the University continues to offer retiree health insurance.

The DC Opt-In Program will not adversely affect the RDD Plan’s financial position. The RDD Plan is in good financial health and members who remain in the RDD Plan (employees participating in the DB Plan or the Hybrid Plan) can count on receiving the benefits they’ve earned under the RDD Plan. The DC Opt-In Program will not have an impact on the benefit levels for retirees currently receiving benefits from the DB Plan or Hybrid Plan or those who choose to remain in the DB Plan or Hybrid Plan.

The University is committed to the sound fiscal management of the RDD Plan and contributes millions of dollars each year to ensure the financial health of the RDD Plan.

Optional programs like the DC Opt-In Program are a common practice for defined benefits plans and will marginally improve the RDD Plan’s funded status and reduce its liabilities. The DC Opt-In Program benefits the University by reducing the number of RDD Plan members and reducing financial risk faced by the University by decreasing the RDD Plan’s liabilities.

Employees eligible to participate in the DC Opt-In Program will be those who, as of September 1, 2026, are:

• Active benefit-eligible employees who are:
  • Vested in the DB Plan or DB component of the Hybrid Plan, and
  • Not eligible for normal retirement (age 65 with at least 5 years of service or age 62 with at least 25 years of service).
• Active benefit-eligible employees who:
  • Were rehired on or after October 1, 2019, and as of September 1, 2026, have a deferred vested pension benefit under the DB Plan or Hybrid Plan that they have not yet started to receive. These employees will only have the option to transfer the lump sum value of their pension benefit to the DC Plan.

Employees not eligible to participate in the DC Opt-In Program include those who, as of September 1, 2026, are:

• Active benefit-eligible employees participating in the DB Plan or the Hybrid Plan who:
  • Are eligible for normal retirement (age 65 with at least 5 years of service or age 62 with at least 25 years of service), or
  • Were hired or rehired on or after October 1, 2019 (unless they have a deferred vested pension benefit under the DB Plan or the Hybrid Plan).
• Active employees in a non-benefit eligible position who have a frozen pension benefit under the DB Plan or DB component of the Hybrid plan.
• Terminated employees:
  • Including those with a deferred vested benefit who have not been rehired, or
  • Those who have been rehired but did not earn a vested benefit under the DB Plan or the DB component of the Hybrid Plan.
• Employees with an approved Division of Benefits Order (DBO) on file with the University.
   

If you choose not to participate, there are no changes to your current core retirement plan. If you prefer to remain in your current core retirement plan or if you are an eligible rehired DC Plan participant who wishes to retain your deferred vested pension benefit, no action is required on your part and nothing will change for you.

If you elect to participate in the Defined Contribution Opt-In Program:

• Active DB Plan or Hybrid Plan members: your core retirement plan will switch from the DB Plan or the Hybrid Plan to the DC Plan.* You will not lose the value of the pension benefits you have earned so far – the lump sum value of your pension benefit as of September 1, 2026, will transfer to the DC Plan, your new core retirement plan.
• Eligible rehired DC Plan members: the lump sum value as of September 1, 2026 of your deferred vested pension benefit will transfer to your current core retirement plan. You will retain the same benefit plan design for the DC Plan.

*To comply with IRS regulations, individuals in the DB Plan or Hybrid Plan who participate in the program will have a 2% minimum required employee contribution under the DC Plan. This contribution will be into their 457(b) Plan. Participants also qualify for a 100% match from the university up to 8%.

As of Sept. 1, 2026	Current DB Plan Participants	Current Hybrid Plan Participants	Current DC Plan Participants rehired after 10/1/19 with a deferred vested pension benefit
Contributions	Your contributions to your current retirement plan will stop (1% of the first $50,000 in salary and 2% of salary above $50,000 per calendar year).	Your contributions toward your pension benefit will stop (1% of the first $50,000 in salary and 2% of salary above $50,000 per calendar year).	You currently make no contributions toward your deferred vested pension benefit (no change).
Conversion	The value of your pension benefit will be converted to a lump-sum and transferred to a new 401(a) ERIP account at Fidelity that will be set up for you. There are no tax implications for the transfer of funds since this is treated as a plan-to-plan transfer.	The value of your pension benefit will be converted to a lump-sum and transferred to your 401(a) ERIP retirement account at Fidelity. There are no tax implications for the transfer of funds since this is treated as a plan-to-plan transfer.	The value of your deferred vested pension benefit will be converted to a lump-sum and transferred to your 401(a) ERIP retirement account at Fidelity. There are no tax implications for the transfer of funds since this is treated as a plan-to-plan transfer.
Your Plan Moving Forward	Moving forward, you will only participate in the DC Plan. Your retirement contributions* will include: 2% mandatory employee contribution to the 457(b) Plan* Voluntary employee contributions (you will be automatically enrolled to contribute an additional 6% to the 457(b) Plan on top of your mandatory 2% for a total of 8%) Up to 8% University match (not less than 2%) into the 401(a) ERIP account.**	Moving forward, you will only participate in the DC Plan. Your retirement contributions* will include: 2% mandatory employee contribution to the 457(b) Plan* Voluntary employee contributions (you will be automatically enrolled to contribute an additional 6% to the 457(b) Plan on top of your mandatory 2% for a total of 8%) Up to 8% University match (not less than 2%) into the 401(a) ERIP account. Currently, your University match is up to 3%.**	Moving forward, you will continue to participate in the DC Plan (no change). Your retirement contributions include: Voluntary employee contributions (no mandatory contributions) Up to 8% University match into the 401(a) ERIP account (you must contribute voluntary employee contributions to the 457(b) Plan of at least 8% to receive the full 8% match).**

*You can change the voluntary portion of your employee contributions to the Defined Contribution Plan, but you must contribute at least 6% to the 457(b) Plan in addition to your mandatory 2% in order to receive the benefit of the full 8% matching contribution from the University.

**The University’s 8% matching contributions under the Defined Contribution Plan, available as part of the Defined Contribution Opt-In Program, may not be modified by the University so long as you remain in continuous employment with the University.