How often does UA increase the contribution amount toward employee pensions?
May 15, 2018
I generally like the UA pension plan; I like being able to chose my own investments
and I like that I will be 100 percent vested after three years. My concern is the
university's contribution does not scale after an employee reaches a gross income
of $42,000. I understand PERS/TERS does scale with income; my concern is with the
pension.
From the UA Benefits Website: "The University of Alaska contributes 7.65 percent of
the eligible employee's salary (up to maximum annual wage base of $42,000) to the
Pension (401a) Plan."
In effect, the university has capped pension contributions to $3,213 per year to eligible
employees earning more then $42,000 per year.
Can you explain why the university's contribution is capped at this amount? Does the
university expect the cap to remain at current levels indefinitely or is the formula
adjusted periodically?
Thank you.