Retirement Match
September 28, 2023
Dear SLU faculty and staff,
When President Pestello announced in November that the 10% retirement match would be restored on January 1, 2023, he noted that SLU would also adopt a new tiered approach for future employees who start on or after January 1, 2024.
Today, I write with an update on the University’s plans to implement this new retirement matching schedule.
What you need to know
This tiered match change impacts employees who start January 1, 2024 or later. Current eligible employees will continue to receive the 2:1 match up to 5% of their compensation (10% match). As a reminder, you are always 100% vested in your own employee contributions. This means that if you leave the University, you will always take your contributions into the retirement plan with you regardless of your length of service.
Human Resources has published a series of Frequently Asked Questions (FAQs) to address questions that you may have about this change. Additional details will be made available this fall.
The University’s matching contribution to the retirement plan will be determined by your hire date.
Hire Dates on or after January 1, 2024
Tiered Matching Structure: Starting January 1, 2024, the University will implement a progressive matching structure for employees who join the University on January 1, 2024, or after. The new tiered approach will be based on years of service and encourages long-term dedication to the University.
For the first seven years of their service at SLU, future employees will receive a 1:1 match on the first 5% of their compensation that they contribute toward retirement. Upon achievement of their seventh anniversary, employees will transition to the 2:1 match that current employees enjoy.
Immediate Matching Contribution and Vesting Schedule: Employees will receive matching contributions immediately upon enrollment into the 403(b) plan. The University matching contributions will not be vested until the employee achieves their third anniversary. If an employee leaves before the third anniversary, the University matching dollars will be forfeited at the time of separation. The employee will take their own contributions with them.
Hire Dates Between January 1, 2023, and December 31, 2023
Full-time employees who work a 0.8 FTE (e.g. work 32 hours) or more and who are currently in their one year waiting period to receive the matching contribution from the University will begin to receive the 2:1 match up to 5% of their compensation on January 1, 2024; however, they will not be fully vested in the match dollars until the completion of their first year of service. Part-time employees who work less than a 0.8 FTE and who contribute to the 403(b) will begin to receive a fully vested matching contribution of 2:1 up to 5% of their contributions from the University upon their one-year anniversary if they worked 1,000 hours or more during their first year of employment.
Hire Dates Prior to January 1, 2023
Current eligible employees will continue to receive the 2:1 match up to 5% of employee contributions (10% match).
Automatic Enrollment
Beginning January 1, 2024, SLU will introduce automatic enrollment in the University’s retirement plan. All employees, both new and existing, will be automatically enrolled to contribute 2% of their salary toward their retirement. (There will be no change for those already contributing 2% or more.)
While automatic enrollment is a recognized way to help employees take proactive steps toward securing their financial futures, we understand that individual circumstances can vary, so you will have the opportunity to opt out of participating.
If you would like to opt-out, you may log into the TIAA website beginning January 1, 2024, and check the opt-out button to remove the automatic contribution. If no action is taken during the month of January, the automatic contribution will begin on the first paycheck in February. You can opt out of the contribution any time after January 2024 if your circumstances change.
These modifications to our retirement plan will allow the University to continue offering highly competitive benefits while ensuring the long-term viability of our generous retirement program.
Thank you for your dedication to our shared mission and understanding as we implement these changes. If you have any questions, please refer to these FAQs or benefits@slu.edu.
Sincerely,
Mickey Luna
Vice President - Human Resources
Saint Louis University