PLANSPONSOR - April/May 2019 - 43

2019
number of funds we had on our menu, and consolidating to one
platform made it easier. " Recordkeeping fees continue to be paid
by participants via revenue sharing utilized in the plan's investments,
he says.
The investment menu streamlining, which took effect a year
ago March, trimmed the number of plan investments from 110
to 50. Kozar says Pitt consolidated the menu based on a strategic
analysis that looked at factors such as performance and amount of
investment overlap. " We also wanted at least one investment-and
more than one in some cases-in each box of the Morningstar
Style Box, so that we were covering our bases, " he says.
Also last year, the university added a 457(b) plan. " We hire
a lot of employees who have good incomes, and many also have
a dual-income household, " Kozar says.
" Certainly, that's a population who
could benefit from having additional
money to put away on a pre-tax basis. "
As of mid-March, 491 Pitt employees
had started to participate in the 457(b)
plan. " I expect that number to grow,
over time, and eventually be closer to
double that, " he adds.
Back in January 2016, the univernot
going to get any additional match. " Therefore, an employee
who takes the accelerated match but ends up deciding not to
retire early could run out of employer match contributions before
he leaves his job.
Explaining the Changes
Last year, the university hosted more than 30 campaign-related
events, including in-person and digital sessions. One was a
November campus visit by TIAA President and CEO Roger
Ferguson, for a full day of talks and presentations with different
university groups. " The focus of all of our events was on the
importance of retirement savings, best practices and, especially,
the 'Write Your Own Financial Story' theme, " Arrington says.
sity's defined benefit (DB) plan closed
to all nonunion faculty and staff, and
unionized employee groups negotiated the end of their pension
plan participation for new hires over a 12-through-18-month
period. Employees who started working for the university before
January 2016 still actively accrue benefits in the pension plan.
Those employees do not get a 403(b) match, though they still may
contribute to that plan.
Employees hired after the pension plan's close get the
The " Write Your Own Financial
Story " campaign stemmed from the
university's collaboration with TIAA
to develop a more personal approach
to employee retirement saving.
In support of the theme, the school enhanced its office of
employer's 403(b) plan match, which is 100% on up to 8% of
pay. These employees become fully vested after three consecutive
years of working at least 1,000 hours a year. Once vested, an
employee can receive a higher match of 150% on up to 8%.
These participants also may utilize an accelerated match
option, in place since 1978. They may elect to receive a 14.5%
employer contribution if they defer 8%, starting no earlier than
at age 52. The accelerated match ends after 10 years or at age 65,
whichever comes first.
On average, Pitt faculty retire at 69 and staff members at
65, meaning some staff retire earlier. The accelerated match
can come in particularly handy for employees planning to retire
early and not wanting to miss out on the match money they
would otherwise receive in their career's last years. University
employees are eligible to retire and to get retiree medical benefits
starting at 62.
" If you know you're going to retire at 62, for example, there's
no reason not to get the accelerated match, " Kozar says. " The
caveat is that it's a 10-year benefit, so once you exhaust it, you're
human resources (HR) website. The site now includes simple
explanations of the recent changes, plus a " Their Financial
Story " section with real-life examples of how Pitt employees are
planning for their financial future. " This new section allowed
us to present the enhancements as more about the individuals
they were affecting, as opposed to just a list of updates, "
Arrington notes.
To gather the stories, the school asked participants to
answer questions about their passions, financial goals and hopes
for retirement; then it posted some of the responses along with
pictures of those employees. " Many organizations talk about their
plans and how 'good' they are, but few put the focus on those in
the plan, " Kozar says. " The theme of 'Write Your Own Financial
Story' emphasizes the individual. We wanted to communicate that
it didn't matter where in life someone was-that person always
has the chance to attain the retirement they want. " -Judy Ward
Public Defined Contribution Finalists
Newport Utilities Newport, Tennessee
State of Michigan Lansing, Michigan
Virginia Retirement System Richmond, Virginia
Read the full finalist profiles on plansponsor.com/PSOY2019.
PLANSPONSOR.com April - May 2019 43
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