By Madelin Shelton —
The University of Louisville will be increasing the university’s contribution to employee retirement accounts to six percent of the employee’s salary effective Feb. 1 through June 30.
“The additional optional university contribution of 2.5 percent that matches voluntary employee contributions will also continue through this period,” U of L President Neeli Bendapudi said in an email.
This increase comes as the university had to implement several budget saving steps last spring in response to the financial fallout of the COVID-19 pandemic. One of these steps included eliminating the university’s contributions to individual retirement accounts. 2.5 percent of employer contributions were restored in August 2020, along with the full restoration of the 2.5 percent match for voluntary employee contributions, after the university found it financially feasible.
“This recent increase to 6 percent is possible because of savings incurred through sound and responsible financial planning and management, which included not only the retirement reduction but also a campus-wide program that reserved 5 percent of unit General Fund budgets to fund possible reductions in revenues,” Bendapudi said. A portion of the reserved General Fund budgets will now go directly to units with the discretion of vice presidents and deans.
The university will have to reevaluate the university retirement plan contributions in Summer 2021, but hopes to maintain the current level of contribution.
“We value you, our faculty and staff, and the important work you have continued to perform so well under less than ideal circumstances. We thank you for your efforts and promise to do our best to reward you for your dedication to the University of Louisville,” Bendapudi said.
File Graphic // The Louisville Cardinal