The university’s pension plan, also known as the Retirement, Disability and Death Benefit Plan, is established to provide retirement income and other stipulated benefits to qualified employees. A trust was established in 1958 and is funded to provide the financial security of those benefits.
To fulfill this objective, the University must maintain a prudent, actuarially-sound funding of the plan liabilities. This funding requirement is derived from two principal sources: the total investment return on trust assets and the amount of university and employee contributions.
Members of the Defined Benefit (DB) Plan and the Hybrid Plan, who have a pension benefit can count on receiving the benefits they’ve earned. To run an estimate of your benefits, visit the Milliman pension benefits portal.
Ë¿¹ÏÊÓƵ takes its fiduciary responsibility seriously and will never waiver from that commitment.
Fiscally Sound Plan
The Board of Curators and University leadership have been, and continue to be, committed to the sound fiscal management of the University’s pension plan.
Financial obligations to all pensioners are consistently fulfilled by the University. Full actuarial-determined contributions are made to the Plan each year by the University. For the plan year ending Sept. 30, 2024, employees contributed $13M, and the University contributed $165M, meeting the annual required contribution described in CRR Section 530.010: Retirement, Disability and Death Benefit Plan.
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 .
Ë¿¹ÏÊÓƵ regularly reviews the reliability of its actuarial assumptions and policies.
For a more in-depth look at how the University determines its funding requirements for the Plan, consult the annual Actuarial Valuation and Review (Archive, PDF).
Investment Transparency
Ë¿¹ÏÊÓƵ'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 Plans' liability structure and the need to make promised benefit payments to members over time. The current allocation strategy for retirement plan assets assumes a 7% long-term return. Review the most recent Pension Plan Profile (Archive, PDF).
These investment objectives are accomplished through an investment portfolio that seeks meaningful diversification of assets. Investments are across public and private equity, U.S. Treasuries, U.S. Treasury Inflation-Protected Securities, private debt, real estate and commodities. The trust employs a total return approach, with an emphasis on balanced growth.
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. Ë¿¹ÏÊÓƵ 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.
Retirement Resources
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.
For questions about the investment of the retirement trust, please contact the Office of Investments at (573) 882-2612 or via email at uminvestments@umsystem.edu.
For questions about retirement plan benefits, please contact University retirement specialists at (573) 882-2146 or (800) 488-5288 or via email at HRServiceCenter@umsystem.edu.
The Office of Human Resources is available to assist members of the Plan in understanding their benefits. Members are encouraged to visit the Milliman pension benefits portal to run estimates.