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- Q: How does the University ensure that it pays salaries that are competitive with other employers in the greater St. Louis area?
A: The compensation office informally reviews the salary ranges of staff positions at the University on an ongoing basis. Annually, a formal review of salary ranges of staff positions is completed. This review involves a thorough comparison of University pay scales to other employers' pay scales for the same job. These comparisons are facilitated by the use of salary surveys. These surveys are collections of salary data from employers and are compiled by independent third parties.
- Q: How much retirement benefit will I get from the 2 percent university contribution when I reach age 65? A: Not enough! The 2 percent contribution means that you are not in the full retirement plan and are not taking advantage of getting 8 percent from the University by contributing 4 percent to the plan. You might be comfortable avoiding any retirement contribution now, but you are likely to have an even more difficult time avoiding expense when you retire. You need to be in the full retirement plan to accumulate any meaningful retirement funds. For example, if you are age 40 now and earn $25,000, the 2 percent contribution would amount to $39,477 (not even two years worth of your current salary) at age 65, assuming 8 percent interest per year. If you are over age 40, the total comes down dramatically as the years remaining to age 65 decrease. Under age 40, the total would increase. At any age, you need to be in the full retirement plan. Even if you are not the primary earner in your family, your income is part of your family's standard of living and needs to be protected. The tax advantages alone can make retirement plan participation a very important decision for you. The first dollar that goes into the plan is the most valuable because it will earn interest for the longest period of time before you retire. Start as soon as you can. The full retirement plan starting at age 30 with the same $25,000 salary would be worth $558,303 assuming 8 percent interest at age 65.
- Human resources would like to hear from you. Please address your questions to Michael Memos in Fitzgerald Hall.
- Q: How much retirement benefit will I get from the 2 percent university contribution when I reach age 65? A: Not enough! The 2 percent contribution means that you are not in the full retirement plan and are not taking advantage of getting 8 percent from the University by contributing 4 percent to the plan. You might be comfortable avoiding any retirement contribution now, but you are likely to have an even more difficult time avoiding expense when you retire. You need to be in the full retirement plan to accumulate any meaningful retirement funds. For example, if you are age 40 now and earn $25,000, the 2 percent contribution would amount to $39,477 (not even two years worth of your current salary) at age 65, assuming 8 percent interest per year. If you are over age 40, the total comes down dramatically as the years remaining to age 65 decrease. Under age 40, the total would increase. At any age, you need to be in the full retirement plan. Even if you are not the primary earner in your family, your income is part of your family's standard of living and needs to be protected. The tax advantages alone can make retirement plan participation a very important decision for you. The first dollar that goes into the plan is the most valuable because it will earn interest for the longest period of time before you retire. Start as soon as you can. The full retirement plan starting at age 30 with the same $25,000 salary would be worth $558,303 assuming 8 percent interest at age 65.
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