Pension Plan for Staff Employees (SEPP)
Effective July 1, 2016, the Pension Plan for Staff Employees (SEPP) closed to new hires and currently enrolled employees earn no additional benefits. The benefits earned in the SEPP as of June 30, 2016, will remain in the plan until you retire from or leave the University.
Staff employees will continue to participate in the Retirement Income Plan for Employees (ERIP). This benefit has been enhanced by increasing the University's base contribution and providing a University match on voluntary employee contributions.
A small group of members under the International Brotherhood of Teamsters Local 743 are still accruing benefits under SEPP.
The SEPP is a tax-qualified 401(a) defined benefit pension plan that provides eligible employees with a retirement benefit based on their final average earnings and years of SEPP participation. Your annual SEPP benefit is calculated using the following formula:
|
(1% of Your Final Average Pay |
+ 0.5% of your Final Average Pay that exceeds your Social Security Covered Compensation) |
x Years of Participation (up to 35) |
= Annual Accrued Benefit |
Terms to Know
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Final Average Pay: The average of your five highest consecutive years of compensation during your final 10 Years of Participation.
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Social Security Covered Compensation: An average of the Social Security taxable wage bases, changing annually. SEPP provides an additional benefit if your Final Average Pay exceeds your Social Security Covered Compensation to ensure that your total retirement income (including Social Security) is comparable at all pay levels.
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Years of Participation: One-twelfth of the aggregate number of months in which you actively participate in SEPP. Special rules apply for breaks in service and disability.
Your SEPP benefit is funded by the University. The University’s contributions are calculated by independent actuaries in accordance with federal regulations. You do not contribute anything to SEPP.
The University bears the risk of investment loss under SEPP. Your SEPP benefit is determined by the formula without regard to the plan’s investment performance.
You become fully vested in your SEPP benefit upon completing three years of service. If you leave the University before you are vested, you will forfeit your entire SEPP benefit.
For more information, please review plan documents found under Benefit Plan Documents.
Additional Resources
Online Pension Self-Service Modeling Tool
For eligible participants of the Defined Benefit Plan a self-service retirement modeling tool is available to perform an array of activities, such as modeling your post-retirement income, estimating your pension benefits, and viewing basic information regarding your pension plan. You can log on to this website and use the modeling tool from any computer with internet access.