Employee Retirement Plan Changes for New Hire NBF

Effective January 1, 2013, there will be changes to the retirement plan for new hire Administrative Professional, Administrative Hourly, Athletic Coaches and Confidential Clerical (non-bargained-for) employees. These changes will only impact employees hired on or after January 1, 2013.

Eastern Michigan University is committed to offering a retirement plan that is competitive, promotes active participation in the plan and is cost effective. The changes made to the plan help accomplish these goals. Administrative Professional (AP), Administrative Hourly (AH), Athletic Coaches (AC) and Confidential Clerical (CC) employees hired on or after January 1, 2013 will receive a 5% retirement plan contribution from EMU. If the affected employee contributes 5% to the voluntary Tax Deferred Annuity Plan via payroll deduction, EMU will contribute an additional 5% to the employees’ retirement plan for a total of 15% (10% contribution from EMU). Employees hired prior to January 1, 2013 will continue to receive their current retirement plan contribution from EMU.

The second change to the plan will be the addition of a vesting schedule. Currently, all employees are immediately vested in the contributions made by EMU. This means you own the contributions as soon as they are in your account. AP, AH, AC, and CC employees hired on or after January 1, 2013 will have a two year vesting period. This means the employee will not own the assets contributed by Eastern Michigan until they have completed two years of service. Any contribution made by the employee into their account from a payroll deduction is immediately owned. 
 
If you have any questions, please contact the Benefits Office at hr_benefits@ emich . edu or by phone at 734-487-3195.

Thank you,

James Gallaher
Chief Human Resources Officer
Eastern Michigan University

734-487-3430
jgallahe@emich.edu