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Home First Eligible on or after July 1, 2027
Employees who first become eligible for University retirement contributions on or after July 1, 2027, receive a University contribution equal to 6% of eligible compensation to the 401(a) Plan, plus a matching contribution to the 403(b) Plan equal to the employee's contribution, up to 4% of eligible compensation.
Benefit Comparison
401(a) Plan
403(b) Plan


University Contribution

6%
Automatic
(no employee action needed)
4%
Match
(Dependent on employee contribution)

Employee Contribution

No Employee Contributions
Up to IRS Maximum
(University matches first 4 percent of pay contributed)

Vesting Schedule

University Contributions Only
1 YEAR
20%
VESTED

2 YEARS
40%
VESTED

3 YEARS
60%
VESTED

4 YEARS
80%
VESTED

5 YEARS
100%
VESTED
University contributions to the 401(a) Plan and 403(b) Plan vest 20% per year and are 100% vested after 5 years of service.
Employee contributions to the 403(b) Plan are always 100% vested.

  • Who do the new retirement rules apply to?

    The change applies to academic campus faculty and staff and U Health academic faculty and staff first eligible for University retirement contributions on or after July 1, 2027.

    Who is not affected by this change?

    The change does not apply to:

    • GME medical trainees
    • Employees enrolled in a University academic campus or U Health academics retirement plan on or before June 30, 2027
    • New hires who are eligible for and timely elect participation in a Utah Retirement Systems (URS) Retirement Plan

    Retirement Contributions Effective July 1, 2027

    Employees who first become eligible for University retirement contributions on or after July 1, 2027, receive a University contribution equal to 6% of eligible compensation to the 401(a) Plan, plus a matching contribution to the 403(b) Plan equal to the employee's contribution, up to 4% of eligible compensation.

    University contributions are subject to the five-year vesting schedule, vested at 20% each year. Employee contributions to the 403(b) Plan are always 100% vested.

    Use the tabs on the left to learn more about each plan, vesting, eligible service, leaving the University, and rehire rules.

  • 401(a) Defined Contribution Retirement Plan

    Eligible employees are automatically enrolled in the 401(a) Plan when they become eligible. There is no waiting period and no action is required to enroll.

    University Contribution

    The University automatically contributes 6% of your pay to your 401(a) Plan account each pay period.

    When Contributions Begin

    University contributions begin with your first University paycheck after becoming eligible and continue each pay period.

    Employee Contributions

    Employees do not contribute to the 401(a) Plan. Employee retirement contributions may instead be made to the 403(b) Plan.

    Vesting
    University contributions to the 401(a) Plan are subject to the five-year vesting schedule shown above. Employees are 100% vested after five full years of vesting-eligible service.

  • 403(b) Retirement Plan

    The 403(b) Plan allows you to make voluntary retirement contributions and receive a University matching contribution of up to 4% of your pay.

    Employee Contributions

    You choose how much to contribute to the 403(b) Plan, up to the applicable IRS annual contribution limit.

    Contributions may be made as:

    • Pre-tax contributions
    • Roth contributions

    Your employee contributions are always 100% vested.

    University Match

    The University matches your 403(b) contributions dollar-for-dollar up to 4% of your pay.

    To receive the full 4% University match, you must contribute at least 4% of your pay to the 403(b) Plan.

    Matching contributions are deposited each pay period in which you make a 403(b) contribution. University matching contributions are always pre-tax.

    Vesting

    University matching contributions are subject to the five-year vesting schedule shown above. Your own 403(b) contributions are always 100% vested.

  • Vesting

    Vesting determines how much of the University's retirement contributions you own based on your years of vesting-eligible service.

    University contributions to both the 401(a) Plan and the 403(b) Plan match are subject to the five-year vesting schedule shown above. Your own 403(b) contributions are always 100% vested.

    What Does Vesting Mean?

    If you leave the University before completing five full years of vesting-eligible service, you keep the portion of University contributions in which you are vested. Non-vested University contributions and the earnings associated with those contributions are forfeited.

    After five full years of vesting-eligible service, you are 100% vested and keep all University contributions and associated investment earnings, subject to the plan's rules regarding when funds may be withdrawn.

    Loans and Hardship Withdrawals

    Loans and hardship withdrawals are available only from vested University contributions. Loans and hardship withdrawals may also be taken from eligible employee contributions, subject to applicable plan rules.

    Remember

    Your 403(b) contributions are always yours. The vesting schedule applies only to University contributions.

  • Vesting-Eligible Service

    Your vesting period is based on your years of eligible service with the University. Service begins with your original date of hire in a benefit-eligible position.

    Service That Counts Toward Vesting

    Vesting-eligible service includes:

    • Service in a benefit-eligible University position.
    • Service in University of Utah Hospitals and Clinics positions.
    • Certain University positions that are not eligible for University retirement contributions, including exchange employees and educational trainees.

    When Service Does Not Accrue

    Vesting-eligible service does not accrue during:

    • A break in University employment of more than 31 days.
    • Time worked in a per diem or other part-time, non-benefited position.
    • A voluntary transfer to a University of Utah Hospitals and Clinics position.

    Employees rehired within 31 days are reinstated without a break in service.

    Service With Other Employers

    Service with another higher education institution does not transfer for vesting purposes.

    Only service with the University of Utah and entities enrolled in University of Utah benefits, including the Utah System of Higher Education and my529, counts toward the vesting period.

  • Leaving the University

    What happens to your University retirement contributions when your employment ends depends on your vesting status and the reason your employment ends.

    Voluntary Termination

    If you voluntarily leave the University before becoming fully vested:

    • You keep your vested University contributions and associated earnings.
    • Non-vested University contributions and associated earnings are forfeited.
    • Your own 403(b) contributions remain 100% vested.

    Termination During Probation, for Cause, or Through Disciplinary Action

    If your employment ends during probation, for cause, or through disciplinary action, any non-vested University contributions and associated earnings are forfeited.

    Reduction in Force, End of Contract, or End of Funding

    If your employment ends because of a reduction in force, end of contract, end of funding, or similar department reason, your University contributions will become fully vested if you are unable to obtain another benefit-eligible University position within 32 days.

    Your department must notify Human Resources of the reason your employment ended by emailing AskHR@utah.edu.

    Positions Expected to Last Less Than Five Years

    If the University offers you a position expected to last less than five years, the end of that employment will be treated as a reduction in force for vesting purposes if you:

    • Fulfill the employment obligations of the offer; and
    • Are unable to find another University position within 32 days.

    This provision applies to positions ending for reasons such as lack of work or funding, budget constraints, grant expiration, departmental reorganization, or other qualifying business reasons.

  • Retirement Plan Upon Rehire

    Generally, rehired employees return to the same University retirement plan in which they were enrolled during their previous employment.

    If you were not previously eligible for University retirement benefits, you will be enrolled in the plan applicable on the date you first become eligible.

    Returning Within 31 Days

    If you return to eligible University employment within 31 days, you are reinstated without a break in service for vesting purposes.

    Rehired Within One Year

    If you return to eligible employment within one year, any University contributions that were forfeited when you left will be reinstated to your account.

    Rehired After One Year

    If you are rehired after more than one year:

    • Previously forfeited University contributions are not reinstated.
    • Your prior University service may be bridged for vesting purposes after completing any required probationary period.

  • Frequently Asked Questions

    Who does the new retirement plan apply to?

    The change applies to academic campus faculty and staff and U Health academic faculty and staff first eligible for University retirement contributions on or after July 1, 2027.

    Who is not affected by this change?

    The change does not apply to:

    • GME medical trainees
    • Employees enrolled in a University academic campus or U Health academics retirement plan on or before June 30, 2027
    • New hires who are eligible for and timely elect participation in a Utah Retirement Systems (URS) Retirement Plan

    What if I previously worked for the University?

    Employees who previously worked for the University generally return to the same retirement plan they had during their previous University employment.

    If you were not eligible for retirement benefits during your prior employment, or were enrolled in the Hospitals and Clinics retirement plan, your plan will be based on the date you first become eligible for the University academic campus or U Health academics retirement plan.

    What if I am eligible for a Utah Retirement Systems (URS) Plan?

    New hires eligible for URS who want to participate in a URS Retirement Plan must complete the Irrevocable Election before their first paycheck.

    Can I transfer vesting service from another higher education institution?

    Generally, no. Only service with the University of Utah and entities enrolled in University of Utah benefits, including the Utah System of Higher Education and my529, counts toward the vesting period.

    Can I take a loan or hardship withdrawal from non-vested University contributions?

    No. Loans and hardship withdrawals are available only from vested University contributions.

    Loans and hardship withdrawals may be taken from eligible employee contributions, subject to applicable plan rules.

    What happens if I move to a non-benefited position?

    Your University contributions are not forfeited simply because you move to a non-benefited position. However, time worked in a non-benefited position does not count toward vesting.

    If you later leave the University before becoming fully vested, the applicable non-vested University contributions will be forfeited.

    What happens if a GME medical trainee moves into a faculty position?

    A medical trainee hired into a faculty position on or after July 1, 2027 will be enrolled in this plan.

    Years of service as a medical trainee count toward the vesting requirement.

    What happens to forfeited funds?

    Non-vested funds are removed from the employee's account after the employee has been gone from the University for one year.

    Forfeited funds are used to reduce future University retirement plan contributions.