Iowa State will restore its portion of the TIAA/VALIC retirement contribution to 10% on July 1, pending approval by the state Board of Regents.
Last summer, university leaders announced a plan to reduce the TIAA/VALIC retirement match by 2 percentage points from Sept. 1, 2020, through June 30, 2021. This was one of several cost-saving measures implemented to address the university's $41.2 million FY21 budget shortfall.
"We recognize the impact the retirement contribution reduction has had on our employees as they consider their long-term financial and retirement goals," said President Wendy Wintersteen. "This is one of many sacrifices that our faculty and staff have made to help the university address extremely difficult budget challenges. We are deeply grateful for their understanding and support during this extraordinary situation."
Over the 10-month period, the reduction will generate an estimated $6.1 million in savings, which will be shared between the central university and divisional units.
"The Institutional Budget Management Team is developing a plan for sharing the cost savings and will communicate that plan with budget leaders as part of our regular FY22 budget development process," said senior vice president for operations and finance Pam Cain.
More information about employee retirement resources is available through university human resources' WorkLife website.