The Employees' Retirement Plan (ERP) is a defined benefit plan which calculates your benefit using two different formulas known as the cash balance formula and the standard formula. At retirement, you will receive the larger of 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 (RSP). You can increase your retirement savings by contributing to the Voluntary Retirement Savings Plan
The ERP plan is closed. All employees hired on or after June, 1, 2007 are eligible for the Retirement Savings Plan.
Lump Sum Distributions
Participants who separate on or after May 1, 2013 may take a full distribution of their retirement plan benefits. Other distribution options are also available.
For more information, please contact a benefits representative
Cash Balance Formula
The University credits a percentage of your pay* each year based on years of service. Your account is credited with plan-defined investment earnings each year (but never less than 5.5%). At retirement, your monthly benefit is determined based on the amount in the account and your life expectancy determined by actuarial tables.
|Completed Service at Beginning of the Year:||Credit to your Cash Balance Account|
|< 1 year||3.25% of pay (pro-rated for the number of completed months between your one-year anniversary date and the end of the plan year)|
|1 thru 2 years||3.25% of pay|
|3 thru 4 years||4% of pay|
|5 thru 9 years||5% of pay|
|10 thru 14 years||6% of pay|
|15 thru 19 years||8% of pay|
|20 and more years||11% of pay|
Under the Standard Formula, your benefit at your Normal Retirement Date is calculated using a percentage of pay* times your years of service:
13/14% of your final average pay up to Covered Compensation plus 10/7% of your final average pay over Covered Compensation times your years of credited service (not to exceed 35 years).
* Pay is limited per the IRS Section 401(a) compensation limit.
Standard Formula Definitions:
is generally each year in which you have completed at least 1,000 hours of service.
is the 35-year average of the Social Security maximum wage base in effect during each of the 35 years ending with the year before you reach Social Security retirement age. This amount will vary by individual.
Final average pay
is the average of your eligible pay earned during any consecutive five-year period with the University that produces the largest amount. Your benefit may be reduced if payments begin prior to your Normal Retirement Date.
Normal Retirement Date
is the June 1st on or after attainment of age 65 or 5 years of vesting service if later; however, you may retire before age 65 if you are age 55 or older and have at least 10 years of service or if your age plus years of service total 70 or greater (Rule of 70).
For more information, please contact HR-Benefits at 305-284-3004 or by completing the online form at www.miami.edu/benefits/ask
Helpful LinksRetirement Calculation Request
How to Enroll in Voluntary Savings