Retirement Contribution Reduction Information for Faculty, Academic Staff and Executive Managers
Effective July 1, 2020, MSU reduced its matching contributions to the 403(b) Base Retirement Program from 10% to 5% of employees’ eligible compensation. In order to receive the University’s 5% match, employees must still contribute 5% of their eligible compensation to the 403(b) Base Retirement Program (just as they were required to do in order to receive the University’s 10% match before the reduction).
Who is impacted
The retirement contribution reduction applies to the following benefits-eligible employees with an employment percentage of at least 50% and an appointment for nine months or longer:
- All executive management employees
- Non-unionized* faculty members
- Non-unionized* academic staff members (other than research associates and senior research associates)
*For these purposes, “non-unionized” means the terms of employment of the faculty member or academic staff member are not covered by a collective bargaining agreement. For those faculty and academic staff members with hybrid Union of Nontenure-Track Faculty (UNTF)/non-UNTF appointments, the retirement contribution reduction only applies to the non-UNTF portion of their appointment.
The retirement contribution reduction applies to all benefits-eligible employees described above For those benefits-eligible employees described above who have not yet completed a service requirement to start earning University matching contributions, the reduction will apply once they complete the service requirement and start receiving University matching contributions.
Additional information and resources
You do not have to take any action at this time. The reductions will be applied automatically for the appropriate payroll periods.
If you have questions regarding these changes, please contact Faculty and Academic Staff Affairs at FAS Affairs@msu.edu or 517-353-5300.
1Executive managers and deans will continue with a wage reduction effective July 1, 2020, at the new wage reduction scale.
2”New” is intended to mean those who are first-time hires under the classification of faculty and academic staff.
