Retirement Match Updates
November 18, 2022
Dear SLU faculty and staff,
I write with good news for you.
In my budget update earlier this fall, I shared that the University is in a strong and stable financial position. Because of steady increases to recurring revenue, we were in a good position to propose to the Board of Trustees a restoration of the 10% retirement match.
The Executive Committee of the Board of Trustees met on Tuesday. Since we restored the match to 8% one year ago, trustees have continued to ask questions about the design and scope of our plan, in comparison to university and industry peers. Following considerable discussion, the Executive Committee ultimately agreed that we could move forward to restore the 10% retirement plan match for all current employees, effective January 1, 2023.
Their approval was granted only on the condition that we implement changes to our retirement plan match for future employees. We will adopt a tiered approach, which will involve a step-wise increase to the match percentage based on years of service.
The specifics of our retirement match plan for all new employees will be worked out in the coming months and proposed to the trustees for approval. This change will affect only those employees hired on or after January 1, 2024.
With their restoration of the 10% match for all current employees, the trustees join me and the University’s leadership team in recognizing your extraordinary contributions to the University through unprecedented challenges. The match was suspended in the early months of the pandemic. At that time, your sacrifice allowed SLU to navigate a turbulent economy without adding to the more than 600,000 layoffs made by higher education institutions.
Your sustained commitment to our mission has ensured that SLU continues to grow and thrive. Thank you for your exceptional work.
Fred P. Pestello, Ph.D.