ROCHESTER, N.Y. (WROC) — The University of Rochester Medical Center has announced that it will cut down its retirement contribution following the financial hit it’s taken from COVID-19.
The university released a statement Thursday, explaining how the reductions will work.
Here’s the breakdown:
“Currently, the University contributes 6.2 percent of the first $59,200 of an employee’s salary directly to TIAA; and then 10.5 percent of an employee’s salary above that, up to the IRS limit of $280,000. For fiscal year 2021, which begins on July 1, 2020, the University will provide a 6.2 percent contribution for the first $100,000 of faculty and staff earnings. We plan for this change to be temporary and hope to return University retirement contributions to previous levels as soon as we find ourselves in a more favorable financial position.”
They say they can increase contributions at any time, and they hope to be able to do that as quickly as possible.
In addition to the retirement contribution reductions, all university faculty who make over $280,000 annually will have their salaries reduced by 10% of the amount earned over $280,000.
The statement says executive leadership at the university has taken salary reductions of 20% of the amount earned over $200,000 a year.