Dear Danforth Campus faculty and staff,
As Chancellor Martin and other university leaders shared in the June 11 message to faculty and staff, the university is facing difficult decisions due to the impact of the COVID-19 pandemic, which has had serious, negative effects on all aspects of the university’s finances. We are writing to you today to follow up on that message and inform you that the Board of Trustees has approved a temporary suspension of the university contribution to the employee 403(b) retirement savings plan for the 2020-2021 fiscal year.
We regret that it is necessary for us to take this step. However, it is important for you to know that we have made this difficult decision with the long-term security of the university and our employees in mind. Doing this now, along with the other actions we are taking to reduce costs, will allow us to protect compensation and jobs for faculty and staff and to bring back the vast majority of our furloughed employees. Please be assured that we will continue to monitor the university’s financial circumstances in the months ahead, in hopes that the outlook will improve so we can revisit this decision and reinstate the benefit before the end of the 2020-21 fiscal year.
Beginning July 1, the university will temporarily stop contributing to the retirement savings plan. This change will begin on the July 17 paycheck for employees who are paid bi-weekly and on the July 31 paycheck for employees who are paid monthly. Employees who gain eligibility during the 2020-21 fiscal year will begin receiving the university contribution when it is reinstated for all employees. Employee contributions to the retirement savings plan are not affected by this change.
We understand that this is a significant change with implications for your personal financial situation. To schedule a virtual appointment to discuss how your personal retirement goals may be affected, please contact TIAA at 800-732-8353. To review your retirement account, including your contributions, investments and beneficiaries, please visit tiaa.org/wustl or call the Service Center at 888-488-3419.
We continue to be grateful to you for your sacrifices and your many contributions to the university, especially during these unprecedented times.
Henry S. Webber
Executive Vice Chancellor and Chief Administrative Officer
Vice Chancellor for Human Resources