Employees who begin work on or after June 1, 2007 and meet eligibility requirements will participate in the Retirement Savings Plan, a defined contribution retirement plan.  The Retirement Savings Plan provides for core contributions by the University of 5 percent of pay.  In addition, the University will contribute up to an additional 5 percent of pay on a one-for-one match of contributions made by the employee.  Immediately upon completion of a one-year waiting period, University contributions will begin, and unless elected otherwise, the employee's pay will be automatically reduced by 1.5 percent, with a matching University contribution of 1.5 percent for a total University contribution of 6.5 percent (5 percent core contribution plus 1.5 percent match).  Eligible employees may elect to contribute and obtain a University match for any amount up to 5 percent of compensation.  All contributions will be made to a University-approved investment company.

An employee earns the right to receive future pension benefits, even if the employee does not remain in the service of the employer, after becoming vested.  Core contributions are vested after three years; matching contributions are vested immediately.  Retirement income under the plan is based on the funds accumulated in the participant's account at the time of retirement.

Eligible employees who began work prior to June 1, 2007 who elected to remain in the Employees' Retirement Plan will be accrued credit for each year in which 1,000 hours was worked.  The retirement benefit is determined by a formula that involves years of credited service, the highest consecutive five-year average salary, and age at benefit commencement.  A second benefit is calculated using a cash balance formula with the greater of the two benefits being paid at retirement.  You become vested in this defined benefit plan after five years of participation.

When you leave the University you may begin receiving a reduced pension benefit as early as age 55 if you have worked at the University for at least ten years, or you can wait until age 65 to receive the full amount of your pension benefit.

For more information, please review the Summary Plan Description located at www.miami.edu/benefits/FSPD2006.pdf.