The university's pension plan (the Retirement, Disability and Death Benefit Plan, referred to as "the Plan") is in good health. Members of the Defined Benefit Plan (DB Plan) and Hybrid Plan, who have a pension benefit under the Plan, can count on receiving the benefits they¡¯ve earned.
The university takes its fiduciary responsibility very seriously and will never waiver from that commitment.
Fiscally sound plan
- Financial obligations to all pensioners are consistently fulfilled by the university.
- The Plan was 80.3% funded on an actuarial basis as of FY24, above the national average for public plans.
- For comparison, the national average is 76.4% for public plans according to the .
- Full actuarial-determined contributions are made to the Plan each year by the university.
- For plan year ending Sept. 30, 2024, employees contributed $13M. The university contributed $165M, meeting the annual required contribution described in CRR Section 530.010: Retirement, Disability and Death Benefit Plan.
- For a more in-depth look at how the university determines its funding requirements for the Plan, consult the annual Actuarial Valuation and Review (PDF).
- The university regularly reviews the reliability of its actuarial assumptions and policies.
Investment transparency
Review the latest quarterly Investment Performance Report (PDF) to learn more about performance, investment targets, membership and more.
The university¡¯s retirement plan assets are managed in a manner that maximizes returns while attempting to minimize losses during adverse economic and market events, with an overall appetite for risk governed by the Plan¡¯s liability structure and the need to make promised benefit payments to members over time.
These investment objectives are accomplished through an investment portfolio that seeks meaningful diversification of assets, with investments across public and private equity, U.S. Treasuries, U.S. Treasury Inflation-Protected Securities, private debt, real estate and commodities.
The current asset allocation strategy for retirement plan assets assumes a 7% long-term return.
The investment policy for the Plan can be found in CRR Section 140.015: Investment Policy for Retirement, Disability and Death Benefit Plan.
Funding sources
The funding formula for the Plan is contributions + investment income = benefits paid.
Both the university and the individual active employee contribute to the Plan during the employee's service with the university. The university invests these combined contributions to earn investment income to cover the future benefits of all members in the Plan.
At retirement, a member is paid in keeping with the Plan provisions, which considers elements such as length of service and the individual's salary earned over time. The payment obligation to members in the Plan resides with the university.
Understanding Deductions on Pay Advice
What changed on employee paystubs beginning in July 2025?
Certain employer retirement plan deduction codes were updated on employee paystubs. These were updated to better assist in internal accounting processes. Because of these changes in internal accounting processes amounts will differ from previous statements.
Did the University reduce contributions into the plan?
No, the University is still contributing the full amount as actuarially required into the plan.
Are employer deductions taken out of my paycheck?
No, employer deductions are not deducted from employee pay and do not reflect or impact individual pension plan benefits. These employer deductions are displayed on employee paystubs to show the University¡¯s contributions towards the pension plan in the current pay period.
Did the calculation of employee pension benefits change?
No, there were no changes in how the pension plan calculates member benefits.
Where can I learn more about the pension plan performance and funding status?
The University provides an annual benefits report each April to the Board of Curators, which includes the report from our independent actuary. See the "fiscally sound plan" section for additional details.
Retirement resources
The Office of Human Resources is available to assist members of the Plan in understanding their benefits. Members are encouraged to visit the pension benefits portal to run estimates or contact the HR Service Center for additional support.
Fidelity, the university's voluntary retirement plan administrator, offers free virtual or in-person one-on-one consultations with dedicated Workplace Financial Consultants to assist with basic financial planning questions or getting started with retirement savings in addition to pension benefits.
Human Resources also offers retirement seminars to help members understand the university's core and voluntary retirement plans.
Reviewed 2025-08-25
