Retirement plans

The University of Missouri provides both core retirement plans for benefit eligible employees and voluntary retirement savings plans that are available to both benefit eligible and non-benefit eligible employees. Participation in the core retirement plans is dependent on the date an employee was first hired by the University.

Generally, employees who were first hired by the University prior to October 1, 2012 are covered by the University’s Retirement, Disability and Death Plan, Level 1 (RDD Plan, Level 1), a defined benefit pension plan. For employees hired on or after October 1, 2012, the core plan is the Employee Retirement Investment Plan (ERIP). The ERIP consists of two parts, a defined benefit pension (RDD Plan, Level 2) and a defined contribution portion, to which both the employee and the University contribute.

Specific rules apply for determining the core plan participation of employees who were first hired by the University prior to October 1, 2012, subsequently terminated their employment and were later rehired. For core plan participation of employees in this category, see umsystem.edu/totalrewards/retirement/core_and_voluntary_plans.

A small number of MU Extension employees participate in the Federal Civil Service Retirement Plan or the Federal Retirement Plan instead of the core retirement plans of the University of Missouri. For employees in this category, additional information about the federal retirement plans may be obtained by contacting Tamra Robbins at 573-882-5134 or at robbinst@missouri.edu.

RDD Plan, Level 1

The University of Missouri Retirement, Disability and Death Plan, Level 1, is the core retirement plan for employees hired by the University prior to October 1, 2012. This is a defined benefit pension plan, with an automatic enrollment at the time employment begins. While the plan is primarily funded by the University, employees are required to contribute to the plan. Employees contribute 1 percent of the first $50,000 of eligible salary received each year and 2 percent of eligible salary above $50,000.

Benefits under the RDD Plan, Level 1 vest after five years of employment. Covered employees are eligible to retire as early as age 55 with 10 years of credited service or at age 60 with 5 years of credited service. At full retirement, the retirement benefit is computed at the rate of 2.2 percent of the average salary for the five highest years of employment multiplied by the credited years of service. Full retirement benefits are generally available to vested employees at the age of 65. Retirement benefits are reduced for those employees retiring early.

For more information about the RDD Plan, Level 1, including information concerning survivor benefits, beneficiary designation and other questions, see umsystem.edu/totalrewards/retirement/core_and_voluntary_plans#rdd and the links to plan documents included at that site.

ERIP

The Employee Retirement Investment Plan (ERIP) is the core plan for University of Missouri employees hired on or after October 1, 2012. ERIP consists of a defined benefit pension plan (RDD Plan, Level 2) and a defined contribution portion. Enrollment in ERIP is automatic at the time of hire for all covered employees.

RDD Plan, Level 2

The defined benefit portion of ERIP is the RDD Plan, Level 2. While the plan is primarily funded by the University, employees are required to contribute to the plan. Employees contribute 1% of the first $50,000 of eligible salary received each year and 2% of eligible salary above $50,000.

Benefits under the RDD Plan, Level 2 vest after five years of employment. Covered employees are eligible to retire as early as age 55 with 10 years of credited service or at age 60 with 5 years of credited service. At full retirement, the retirement benefit is computed at the rate of 1% of the average salary for the five highest years of employment multiplied by the credited years of service. Full retirement benefits are generally available to vested employees at the age of 65. Retirement benefits are reduced for those employees retiring early.

Defined contribution portion

The defined contribution portion of ERIP consists of moneys contributed by the employee and the University to a variety of investment funds. The base funding of the defined contribution portion of ERIP consists of a non-elective University contribution of 2% of ERIP compensation to the core defined contribution ERIP plan (known as the 401(a) fund). In addition to this contribution, the University will match employee contributions to a qualified 457(b) plan with contributions (up to 3% of ERIP compensation) to the 401(a) fund. At the time of enrollment, the default contribution level for employees is 3% of ERIP compensation, to assure the maximum University matching contribution. A variety of options are available for determining how the contributions are invested. These options are generally the same as apply to the voluntary retirement plans of the University.

Employee contributions to the ERIP defined contribution funds are vested immediately. The University’s contributions vest after three years of credited service. The balance in the investment funds are paid out under a variety of options at the time of termination of employment.

As a defined contribution plan, the benefits paid at the time of retirement depend on the value of the investment portfolio of the plans.

For more information about both portions of the ERIP, including information concerning investment options, contribution limits, survivor benefits and beneficiary designation, see https://www.umsystem.edu/totalrewards/retirement/core_and_voluntary_plans#erip and the links to the various plan documents included at that site.

Voluntary retirement plans

In addition to the core retirement plans, benefit-eligible and non-benefit eligible employees may choose to participate in one or more of the voluntary retirement plans sponsored by the University. The amount that may be invested in these accounts depends on the type of plan selected and all contributions are subject to IRS limitations. For information about the voluntary retirement plans of the University, see www.umsystem.edu/totalrewards/retirement/core_and_voluntary_plans#vrp and the links included at that site.