The University of Utah will be changing its retirement benefits contribution formula next year.
Starting July 1, 2027, newly hired employees in benefit-eligible positions will receive a 6 percent annual contribution from the university to their 401(a) accounts. Employees who elect to contribute 4 percent or more to a 403(b) account will receive a 4 percent match from the university.
All in all, the change means the university’s contribution to employee retirement accounts will change from the 14.2 percent currently provided to 10 percent.
Current employees (those hired prior to July 1, 2027) will retain the old formula and continue to receive 14.2 percent contributions from the university.
“This new approach will sync retirement benefits across the university and clinical enterprise, while also freeing up funds to realign total employee compensation with current market and workforce demands,” said Jeff Herring, chief Human Resources officer.
U of U Health already provides a 6 percent contribution to employees with a match of 4 percent.
The money saved will be reinvested in more competitive salaries for U employees.