Board Changes Retirement Vesting

LEXINGTON, Ky. (Sept 10, 2013) ―  An enhanced employee benefit approved by the University of Kentucky Board of Trustees today is expected to improve UK's ability to hire top faculty and staff. The board approved changing the Retirement Plan Vesting Schedule from five to three years. This is a revision to the Administrative Regulation covering retirement.

The change is retroactive to Jan. 1, 2013. This means employees who began working since Jan. 1 this year can take full ownership of the university contribution to their retirement plan after three years instead of five. On Jan. 1, 2010, UK instituted the five-year vesting period meaning employees who left UK prior to their five-year anniversary could keep their contribution to their retirement plan, but not the university's contribution.

“This enhances our ability to attract top talent and places us in a more competitive position relative to our benchmark institutions,” said Chief Human Resources Officer Kim Wilson about the revision, which has the support of the Administrative Regulations Committee, made up of faculty and staff, and the Employee Benefits Committee.

With the revision to the Administrative Regulation covering vesting it now reads as follows:

E. Vesting

1. Retirement benefits purchased by employee with employee contributions become the property of individual participants immediately.

2. Retirement benefits purchased with the employer contributions become the property of the employee after an appropriate vesting period.  The vesting period is:

          a.  Immediate for employees who commenced employment with the University before Jan. 1, 2010;

          b.  Five (5) years of service to the University for employees who commenced employment with the University on or after Jan. 1, 2010, but separated prior to Jan. 1, 2013;

          c.  Three (3) years of service to the University for employees who commenced employment with the University on or after Jan. 1, 2010, and were still employed as of Jan. 1, 2013;

          d.  Three (3) years of service to the University for employees who commence with the University on or after Jan. 1, 2013.