Whether you are planning to retire in five, 10 or 25 years, it is important to plan early. The University offers three retirement programs depending on your date of hire.

ANNOUNCEMENTS: September 25, 2009
The Pension Protection Act of 2006 requires the University of Miami to provide an Annual Funding Notice to all ERP participants for plan years beginning June 1, 2008. The Annual Funding Notice replaces the Summary Annual Report previously provided each April. The Annual Funding Notice reports the funded status of the ERP for the plan year beginning June 1, 2008 and ending May 31, 2009, describes how the plan assets are invested, and outlines the benefits that are guaranteed by an agency of the federal government called the Pension Benefit Guaranty Corporation (PBGC). To view the ERP Annual Funding Notice for the 2008 plan year, including a list of Frequently Asked Questions (FAQs) and a Glossary of Terms click here.

In addition, we previously communicated that the stock market decline had significantly reduced plan assets in the ERP and that federal law imposes a limit on lump-sum payments until the institutional cash contributions and market returns replenish the assets in the plan. Therefore, due to the funded status of the ERP, the plan is subject to benefit restrictions effective September 1, 2009 until the Funding Target Attainment Percentage is at least 80% in accordance with federal law. To view a list of Frequently Asked Questions about the ERP benefit restrictions click here.

The ERP Annual Funding Notice and the communication regarding benefit restrictions are for informational purposes only. You do not have to take any action as a result of these communications.

If you have any questions, contact Benefits by completing the form at www.miami.edu/benefits/ask.

The Retirement Savings Plan is a defined contribution plan in which the University makes an automatic core contribution of 5% of pay with a dollar-for-dollar match on voluntary contributions up to an additional 5% of pay. You may choose to direct these contributions to one of five University approved investment companies. Participation is limited to faculty and staff hired on or after June 1, 2007, or who elected to transfer to this plan from the Employees’ Retirement Plan or from the Faculty Retirement Plan.

The Employees’ Retirement Plan is a defined benefit plan which calculates your retirement benefit using two different formulas known as the cash balance formula and the standard formula. At retirement, you will receive the larger of the benefit calculated under the cash balance or standard formula, not to exceed the IRS Section 415 limit. Participation is limited to employees hired prior to June 1, 2007 who did not transfer to the Retirement Savings Plan.

The Faculty Retirement Plan is a defined contribution plan wherein monthly contributions of 7% of pay will be made to the company of your choice from a list of University approved companies. Upon attaining tenure or completion of seven years of service (whichever is earlier), the University will contribute 11% of pay. Participation is limited to faculty hired prior to June 1, 2007 who did not transfer to the Retirement Savings Plan.

How to Plan for Retirement
Financial Planning Resources
2009 IRS Retirement Plan Limits