UST Retirement Plan
St. Thomas has a 403(b) defined contribution retirement plan. This plan enables the University to provide contributions for most salaried and hourly employees who hold full-time and part-time regular positions that are approved to work at least 1,000 hours annually. The University contributes 9.4% of base annual salary for all eligible employees to a Transamerica investment account. To be eligible to receive contributions employees must complete one year of employment, and all contributions are fully vested after three years of service. Contributions are defaulted to a lifecycle fund unless another fund option is selected from the available investment lineup.
Employees can make voluntary pre-tax and after-tax contributions to the retirement plan which are immediately vested. Pre-tax contributions reduce the amount of an employee’s salary that is taxable under federal and state laws and defers paying taxes on the money contributed as well as on the gains, dividends, and interest. After-tax contributions, also called the Roth option, allow employees to contribute after-tax dollars and then withdraw tax-free dollars from the account after retirement. Employees can begin to make voluntary contributions at any time and contribute up to the Internal Revenue Code limits allowed each year.
To select or change investment options, set up or manage an account with Transamerica, go to Transamerica's website or call 800-755-5801 to speak with a Transamerica representative.
Phased Retirement Option for Faculty
The University offers a phased retirement option for faculty, enabling participating individuals to plan effectively and transition into retirement by reducing workload and salary while retaining benefits and faculty rights and privileges during the transition. The phased retirement period is three calendar years (beginning August 1 and ending the third consecutive July 31), but can be for a shorter amount of time with the Provost’s approval.
During phased retirement, the faculty member must maintain a workload equivalent to half-time (0.50 FTE) each year, with at least 50% of a full-time teaching load and related student advising. The remaining allocation of part-time workload to teaching, professional engagement and service will be negotiated with the applicable Dean.
Faculty interested in participating in this option must meet all the following criteria:
- Be age 55 or older;
- Have completed at least 10 years of continuous service with the University as a tenured, tenure-track or clinical faculty member; and
- Have a combined age and years of continuous service equal to or greater than 70 (for example, age 55 plus 15 years of continuous service).
Age and years of service will be calculated as of August 1 of the year in which the faculty member intends to begin phased retirement.
Faculty interested in applying for a phased retirement that begins August 1, 2017 should complete and submit an application to the Office of the Provost on or before November 1, 2016. Applicants will be notified of their status no later than February 1, 2017.