Retirement for New Hires
Mandatory Retirement Plans
Welcome to Colorado State University! CSU is required by law to provide this Statement Concerning Your Employment in a Job Not Covered by Social Security (SSA 1945). Employees of CSU do not participate in the Social Security program and a pension from this job could affect future Social Security benefits to which you may become entitled. Because your earnings from this job are not covered under Social Security, you are mandated to participate in one of the following retirement programs:
- Colorado Public Employees Retirement Association (PERA)
- Defined Contribution Plan (DCP)
Social Security and CSU
Faculty, Administrative Professionals, Non-Classified Staff
Employees are required as a condition of employment under Colorado law, to participate in either the University’s DCP for retirement or, in limited cases, Colorado PERA, both 401(a) plans.
DCP: Your retirement contributions to the mandatory retirement plan will be sent to Fidelity Investments, the sole record keeper.
PERA: You may be eligible to participate in PERA if you have at least 12 months of prior PERA service credit and have not previously elected to participate in an Optional Retirement Plan (ORP) at any public college or university in Colorado. Failure to make an election within 30 days of your eligibility date will eliminate an option to select PERA, and you will automatically be enrolled in the ORP. Enrollment into either PERA or the ORP is by law irrevocable (cannot be changed).
PERA Retirees: Current PERA retirees may elect PERA or the ORP each time they are reappointed, but a PERA election will require you to make employee/working retiree contributions.
PERA is a separate and independent entity and has the authority to make determinations regarding eligibility for membership. CSU cannot mandate, nor is it responsible for PERA’s determinations regarding eligibility. In the event of a conflict between the information on this page and the official plan documents, the plan documents will gover
An employee will contribute 8% of thier monthly salary (cannot not be adjusted) and the University will contribute an amount equal to 12% of your covered monthly salary to the DCP accounts of:
- Faculty and admin professionals on a regular or special appointment of 50% FTE or greater (as of date of hire).
- Temporary faculty and admin professionals, post doc fellows, veterinary interns, and clinical psych interns of 50% FTE or greater are eligible for the match after one (1) year of continuous service at that level.
To complete one year of service:
- A 9-month employee must complete two (2) consecutive semesters of continuous 50% or greater employment (excluding summer term)
- A 12-month employee must complete 12 months of 50% or greater employment.
Any interruption in a continuous appointment requires the employee to complete one year of service again before CSU will provide the employer match to the DCP.
If you are eligible for Colorado PERA (not common), member contribution rates are established by state law and determined as a percent of member pay. If eligible, you must make a irrevocable decision to enroll in either the DCP or PERA plan, by using the Retirement Plan Enrollment Form. If you do not make a decision with 30 days, you will be defaulted into the DCP plan with no option to change later.
An employee will contribute 11% (as of July 1, 2022) of thier monthly salary (cannot not be adjusted) and the University will contribute* a base rate of 11.4%, plus 11.57% in additional rates.
*Employer contributions paid on behalf of a PERA member are not deposited into the employee’s individual account. Since July 1, 1985, a portion of PERA employer contributions are used to pay part of the health care premiums for benefit recipients enrolled in the PERA health care program. The University is also required to remit AED/SAED contributions which are based on the total payroll of PERA members and employees who can elect either PERA or another plan (regardless of the plan elected), and are designed to fund PERA’s liability for future retiree benefits.
Voluntary Retirement Plans
An employee may enroll or change contributions at any point in time. It is not required to do at the time of your new appointment.
- All non-student employees can participate in CSU’s 403(b)
- All employees can participate in PERA’s 457 and/or PERA’s 401(k) plans. For more information, visit the PERA website or call 800-759-7372.
Under the 403(b) plan, eligible employees may contribute on a pre-tax basis, in which investment earnings grow tax-deferred until they are distributed. The employee is responsible for selecting investments with a program vendor (currently three). Both “Traditional” and “Roth” accounts are available. A Traditional account is funded with pre-tax contributions and a Roth is funded with after-tax contributions.
You may enroll in the 403(b) directly with Fidelity Investments.
Colorado PERA
1-800-795-7372
copera.org
Both plans offer the same PERAdvantage investment options and Empower Retirement is the recordkeeper for both plans.
401(k) election/payroll form
401(k) form for non-PERA members
PERA manages the 401(k) plan. To participate, complete a salary deferral election form and the necessary PERA application. New enrollments/changes are due by the 10th day of the month for the change to be effective for that monthly payroll cycle.
457 Plan
Your initial enrollment form must be submitted to PERA. You will then be sent a secure PIN by PERA which allows you to complete the enrollment process online and to make future changes to contribution amounts or fund selections. Payroll deductions are initiated the month following completion of the online enrollment process.
Avalaible Options
CSU offers employees the opportunity to contribute to tax-deferred investment accounts. These accounts can supplement the mandatory retirement plans.
- 403(b) Tax-Deferred Annuities and Custodial Accounts
- PERA 457 Deferred Compensation
- PERA 401(k)