Suspension of Employer Contributions to the Boston University Retirement Plan
|Updated 4/5/21: Boston University has made a determination to resume University contributions effective July 1, 2021.|
The COVID-19 pandemic is causing significant financial impacts to the University. Several important steps are being taken to help control and reduce costs in Fiscal Year 2021 to secure the University’s future.
One of these steps is the difficult decision and shared sacrifice to suspend employer core, matching and transition contributions to the Boston University Retirement Plan for all Plan participants effective July 1, 2020. University contributions to the retirement plan will continue through the month of June 2020 for all plan participants.
Why is the University suspending contributions to the Boston University Retirement Plan?
Like many other educational institutions, the economics of how we operate are evolving quickly and dramatically, and we must be prudent in preparing for our future. As we continue to review our financial situation to understand the impact of this pandemic on Boston University, it has become apparent that we must take additional steps to cover shortfalls in revenue and additional expenses incurred by the pandemic so that we may secure our future. Suspending University contributions to the Boston University Retirement Plan will save the University $ 83 million and preserve jobs that would otherwise be lost.
How long will the suspension of University contributions last?
University contributions will be suspended for Fiscal Year 2021, which occurs from July 1, 2020 through June 30, 2021. You will receive your final University contributions in your June 30th paycheck if you are monthly paid or your June 26th paycheck if you are weekly paid. As we approach the end of Fiscal Year 2021, the University has made a determination to resume University contributions effective July 1, 2021.
Which University contribution types does this suspension period apply to?
This suspension applies to all University contributions to the BU Retirement Plan. This includes the University core and matching contributions, as well as the annual transition contribution, for those of you who may receive it.
I am expected to meet the two year eligibility service requirement during Fiscal Year 2021. When will I receive my first University contribution?
You will not receive any University contributions during the suspension period, however employment during this time will still count towards the two year waiting period. If you achieve two years of eligible service during the suspension period, you will be automatically enrolled in the BU Retirement Plan at the time when contributions once again commence.
Can I still make my own personal contributions to the Supplemental Retirement and Savings Plan?
Yes, you may continue to contribute to the Supplemental Retirement and Savings Plan during this time. This plan allows you to contribute any amount up to the annual IRS maximum, which is $19,500 if you are under age 50, and $26,000 if you are 50 years or greater. You can chose to increase, decrease or stop your contribution at any time through the BU Benefits Center in Employee Self Service via the BUworks Portal.
If you have any questions concerning this change, please contact the HR Service Center at firstname.lastname@example.org or 617-353-2380