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 will have to pay more toward their retirement funds than current members according to a decision made today by the Board of Regents, my MPR colleague Tim Post reports:

The payments will more than double. Currently U faculty  put 2.5 percent of their salaries into retirement,  while the U pays 13 percent -- an arrangement in place since 1992. The new plan requires faculty hired  after the first of the year to pay 5.5  percent, and the U's contribution  will drop to 10 percent.

Current faculty won't be  affected by the  change.

The plan is expected  to save the university $3 million dollars in the first year, and possibly more than $10 million by its fourth year, according to a university estimate.

Regent Patricia  Simmons says the move puts the U's retirement contributions more in line with  other universities:

Jackie Singer,  director of retirement programs at the U, says faculty groups on campus didn't  want employees contributions to go any higher than 5.5 percent.

The increase puts  the U more in line with what other universities contribute to their faculty  members' retirement funds, but remains more generous than most private sector  employees' retirement plans.

Education News

On Campus Blog

Alex Friedrich

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Future faculty hired by the University of Minnesota will have to pay more toward their retirement funds than current members according to a decision made today by the Board of Regents, my MPR colleague Tim Post reports: The payments will more than double. Currently U faculty put 2.5 percent of their salaries into retirement, while…

Future Univ. of Minnesota faculty to double retirement contributions

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