The Columbia Missourian reports that the board first voted in June to close the current retirement program to new employees beginning late next year. The current retirement plan for existing employees and retirees will continue. There will be no change in benefits paid at retirement.
According to the news report, the defined benefit part of the plan is similar to the university’s existing retirement plan but uses a 1% of pay multiplier. The required employee contribution is identical to that of the current plan. The terms for employee vesting in the defined benefit portion of the plan are also identical to the university’s current plan.The defined contribution portion of the new retirement plan includes 2% of pay contribution by the university to an employee-directed investment account. New employees can make voluntary payments to their defined contribution accounts, which will be completely matched by the university, up to 3% of pay.