The UM System Office of Human Resources continually reviews its benefit offerings to ensure we maintain responsible financial stewardship of University resources, as well as offer competitive benefits that help to recruit, reward, and retain our talented faculty and staff. A few of the updates to retirement offerings approved earlier in 2019 have effective dates that will come to pass heading in to 2020:
- Retirement process
- Retirement plans
For more information about retirement, review the resources available here on the retirement webpages (umurl.us/retire), or, reach out to your local HR Generalist (umurl.us/cbr) or the HR Service Center (umurl.us/hrsc) at (573) 882-2146, toll free at (800) 488-5288, or at HRServiceCenter@umsystem.edu.
All employees who are ready to begin the retirement process must meet with their campus HR Generalist to initiate their retirement. Reach out to your local HR Generalist, a dedicated central point of contact ready to help employees and departments in delivering a smooth and streamlined retirement process. This subject matter expert on benefits and retirement will support employees and departments each step of the way; find your local HR Generalist among the UM System HR campus contacts (umurl.us/cbr).
- Retirements initiated January 1, 2020 or later will require a signature from the HR Generalist on the Notice of Intent to Retire form (PDF, 81KB).
For employees who are in a position which accrues vacation time pursuant to HR-402, unused vacation time will be paid as follows based on the employee’s last day worked:
- Last day worked March 31, 2020, or earlier: Employee will follow the current process of being placed on a vacation payout leave until all unused vacation time is exhausted (in other words, the employee will receive their unused vacation paid out over time, after the employee’s last day worked). The following day is the official ‘retirement date’. Service and salary for unused vacation time is creditable when calculating the retirement benefit. * An employee whose last day worked is between January 1 and March 31, 2020, may request a lump sum payment for their vacation payout.
- Last day worked April 1, 2020 or later: Employee will follow the new process of being paid unused vacation as a lump sum payment on the next available pay period after the employee’s last day worked. The official ‘retirement date’ is the day immediately following the last day worked. Service and salary for unused vacation time continues to be creditable when calculating the retirement benefit. This is the new process as of April 1, 2020; however, an employee whose last day worked is between January 1 and March 31, 2020, may request a lump sum payment for their vacation payout.
I already submitted my Notice of Intent to Retire for a future date, does this change have an effect my retirement date?
If you are in a position that does NOT accrue paid time off (sick, vacation, personal), there is no change to your retirement date or retirement processing.
If you are in a position that accrues paid time off (sick, vacation, personal), contact your campus HR Generalist to discuss how this change may affect your retirement date. Refer to the above information about last day worked.
I already submitted my Notice of Intent to Retire for a future date, do I need to meet with my HR Generalist and obtain their signature on the NOI?
If you have already submitted your NOI, you do not need to meet with your HR Generalist or obtain their signature on the NOI. The new NOI will be available effective 1/1/2020 and those who are initiating their retirement that date or later will be required to meet with the HR Generalist and obtain their signature on the NOI.
If I receive a lump sum payout of my vacation, do I still get credit for my unused vacation in my retirement calculation?
Employees who receive their unused vacation as a lump sum payment will receive service and salary credit for any unused vacation in their retirement calculation. Employees will work with their campus HR Generalist to calculate their unused vacation balance as of their last day worked and this information will be provided to the UM System Office of Human Resources for inclusion in the retirement calculation. Please note, unused vacation cannot be used to reach an age threshold for unreduced retirement benefits.
Where can employees get additional support?
The HR Service Center is available to provide support and assistance. For any other questions, contact the HR Service Center at 573-882-2146 or firstname.lastname@example.org.
All faculty and staff who are hired or rehired on or after October 1, 2019, will be enrolled in the Defined Contribution core retirement plan. Visit the UM System website for more information on Core and Voluntary Retirement Plans (umurl.us/retplans).
UM will update the definition for the types of compensation eligible for employer base and matching contributions, effective January 1, 2020. For Defined Contribution and Hybrid Plan participants, the University will begin making base and match contributions on earnings that were previously ineligible, such as overtime pay and relocation incentives. Learn more about updates to eligible compensation.
Why is the University changing the types of compensation that are eligible for Employer base and match contributions?
The UM System Office of Human Resources continually reviews its benefit offerings to ensure we maintain responsible financial stewardship of University resources, as well as offer competitive benefits that help to recruit, reward, and retain our talented faculty and staff.
The University will begin making base and match contributions on earnings that were previously ineligible, such as overtime pay and relocation incentives.
What does eligible compensation mean?
Eligible compensation, for retirement purposes, means the compensation an employee receives that is eligible for employer base and matching contributions.
What types of compensation were previously not considered eligible compensation in the calculation of employer base and matching contributions?
Previously compensation such as (but not limited to) incentive pay, moving allowance, overtime, etc. were not included for the purpose of the employer base and matching contributions. However, these types of earnings are considered eligible for an employee’s own contributions to a 457(b) plan.
How do I know if this applies to me?
The change to University base and matching compensation is being made only on the Defined Contribution Plan and the Defined Contribution component of the Hybrid plan beginning 1/1/2020.
When is the eligible compensation definition changing?
The change will be effective January 1, 2020.
Why is the change effective 1/1/20, and not 10/1/19 with the new Defined Contribution Retirement Plan?
Contributions to the Defined Contribution Plan, both employee and employer, are limited by the IRS on a calendar year. To make this change most effective and reduce disruption for our current employees, the change will go into effect on the beginning of the new calendar year when limits reset.
Will this impact my paycheck?
The change to the University base and matching compensation definitions will not affect your monthly or biweekly net pay. You may notice a difference in what the University is matching on if you receive compensation that was previously not eligible for employer base or matching contributions. To see your paycheck please log into myHR (myhr.umystem.edu).
How do I change my contribution amount in the Voluntary Retirement Plans?
You may make changes to your contribution percentages or enroll in a 403(b) or 457(b) plan at any time while you are employed with the University of Missouri. Please access your account by visiting Fidelity’s NetBenefits https://nb.fidelity.com/public/nb/umretirement/home. For step by step instructions for making your elections or changing your election percentage(s), consult the How to Change your 403(b) or 457(b) Contribution Percentages tutorial (PDF, 285KB).
What about payments received prior to 1/1/20 – will I receive a retroactive match on compensation that was not previously considered for employer base or match contributions?
The effective date of the change will be implemented 1/1/20 for compensation received on or after that date. No compensation received prior to 1/1/20 will be considered as the applicable compensation definitions in place at that time were applied appropriately.
Where can employees get additional support?
The HR Service Center is available to provide support and assistance. Contact them at (573) 882-2146, toll free at (800) 488-5288 or via email at email@example.com.
As a result of a recent review, the University updated the voluntary retirement programs, effective September 30, 2019, with the intent to enhance the investment lineup and lower your overall costs. You were notified of these updates in August 2019, and can review the fund changes (PDF) and fee changes (PDF).
Note: This information is intended to help answer many commonly asked questions, and is not meant to fully address all provisions of the plans. Refer to the summary plan descriptions (SPD) for more detailed information.