MU Health Care Retirement Changes

 

Effective date:

January 1, 2027 (Pending Board of Curators approval)

 

Who does this impact?

This change applies only to MU Health Care benefit-eligible employees (working 30+ hours per week) enrolled in the Defined Contribution retirement plan who were hired or re-hired on or after Oct. 1, 2019.

This change does NOT impact:

• Employees in the Defined Benefit Plan
• Employees in the Hybrid Plan
• Employees who elected to move to the Defined Contribution Plan through the Defined Contribution Opt-In Program.
• Employees employed at a University of Missouri location other than MU Health Care.

 

What is changing?

Updates to employer contributions for impacted MU Health Care employees:

• 2% automatic employer contribution to the 401(a) Plan

MU Health Care will contribute 2% of your eligible salary regardless of whether you contribute (called a nonelective employer contribution).

• Up to 4% additional employer match to the 401(a) Plan

MU Health Care will match your contributions to the 457(b) Plan at 50%, up to a maximum of 4%:

• Contribute 6% and receive a 3% match  
• Contribute 8%, and receive the maximum 4% match

• Maximum total employer contribution: 6%

(2% nonelective contribution plus up to 4% employer match)

Example scenario

A benefits-eligible MU Health Care employee in the Defined Contribution Plan has an annual salary of $50,000 and contributes 8% towards retirement

• Before Jan 1, 2027:
  • Employee contribution is $4,000 ($50,000 x 8%)
  • Employer match is $4,000 ($50,000 x 8%)
• After Jan 1, 2027:
  • Non-elective contribution is $1,000 ($50,000 x 2%)
  • Employee contribution is $4,000 ($50,000 x 8%)
  • Employer match is $2,000 ($50,000 x 4%)

Why are employer contributions changing?

• Benefits changes are one component of a broader effort to strengthen the long-term sustainability of MU Health Care. Like many health systems across the country, we are facing sustained financial pressures that require difficult decisions across multiple areas.
• These changes were identified through a thorough review of our benefits program and are necessary to ensure we can continue investing in our people, programs and patient care for the future.

• We reviewed our benefits program against other health systems across the region and identified opportunities to better align our offerings with the broader market while continuing to provide competitive benefits for our employees.
• We understand these changes will have a personal impact for some employees, and we do not take that lightly. These decisions were made thoughtfully and with a long-term focus on maintaining a strong, sustainable organization that can continue investing in our people, patients and mission.

 

How were decisions made?

• These decisions are grounded in a comprehensive benchmarking process conducted with external expertise, comparing our programs to peer health systems.
• The changes are designed to bring our benefits program into closer alignment with those offered by comparable regional health systems. Even after these adjustments, our overall benefits package remains competitive within the market. This was a deliberate outcome of the benchmarking.

How do I check my current retirement contributions?

Log into your Fidelity NetBenefits account or call 800-343-0860.

How can I change my retirement contributions?

You may change your employee contributions at any time by logging into your Fidelity NetBenefits account or by calling 800-343-0860. Any changes are effective in the next available payroll period. Allow one to two payroll cycles for changes to take effect. 

How can I learn more about my retirement plan options?

To learn more about your core retirement plan, along with voluntary retirement plan options, visit the core and voluntary retirement plans webpage.