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Contributions to Employee Retirement to Increase
March 20, 2010 — The University of Wyoming Human Resources Benefits Office reports that employee retirement contributions will increase next fall.
UW currently contributes 11.25 percent of each employee's salary to a retirement account of the employee's choice, either to the Wyoming Retirement System (WRS) or TIAA-CREF. Roughly half of that amount, 5.57 percent, is considered the employee contribution and 5.68 percent is the employer contribution, but the university has made the full contribution for many years.
The Wyoming State Legislature recently passed a bill to increase funding of the WRS retirement plan(SF0072). The goal is to secure their ability to pay benefits promised to current and future retirees. More information about the need to increase funding can be found in a letter from the chairman of the WRS board.
Effective Sept. 1, 2010, the employee contribution will increase to 7 percent and the employer contribution to 7.12 percent, for a total of 14.12 percent. This increase will require employees to be responsible for paying the increase in their contribution, or 1.43 percent of the employee's salary. To ensure equal treatment of all employees, TIAA-CREF participants will also be required to contribute 1.43 percent to their retirement accounts, and consequently will receive the increased employer contribution.
This increased contribution to employees' retirement accounts will make an already valuable benefit even better, says Eric Goldenstein, Human Resources benefits manager.
"WRS participants will have more assurance that a guaranteed pension will be available when they retire," he says. "TIAA-CREF participants will have more money invested that will hopefully grow over time."
For more information, call the Human Resources Benefits Office, (307) 766-2437, email@example.com.