Retirement

• Faculty and certain professional staff: You are automatically enrolled in the MUS Retirement Plan (MUS-RP) through TIAA, unless you are an active or inactive member of TRS or PERS, in which case you may have the option to remain in your current system or move to the MUS-RP. 

• Classified staff in PERS-covered positions: You have 12 months from your hire date to make a one-time, irrevocable decision between the MUS-RP and a PERS retirement option. If you do not make a decision within 12 months, you will default into the PERS Defined Benefit Retirement Plan. 

Contact HRS if you are unsure which category applies to your position. 

• Defined contribution plan: You and your employer contribute a set percentage to your individual account. Your retirement benefit depends on how much was contributed and how your investments perform.  

• Defined benefit plan: Your retirement benefit is a guaranteed monthly payment based on your years of service and salary, regardless of investment performance. 

Contribution rates are set by Montana statute and Board of Regents policy. You cannot change the payroll contribution amounts. Contributions are calculated on your gross compensation before any pre-tax deductions and grow tax deferred.

Faculty and professional staff (MUS-RP):  

• Employee contribution: 7.044% of gross compensation 

• Employer contribution: 5.956% to your individual account, plus 4.72% to the TRS Unfunded Liability Mandate 

Classified staff (MUS-RP):  

• Employee contribution: 7.9% of gross compensation 

• Employer contribution: 9.13% to your individual account, plus 0.04% to the PERS Education Fund 

Faculty and professional staff:

If you are not an active or inactive member of TRS or PERS, you are automatically enrolled in the MUS-RP. Visit TIAA to select your investment options. If you do not choose an allocation, you will be placed in a Lifecycle fund based on your estimated retirement date.

Classified staff:

Complete the online PERS Plan Choice Election Form at MPERA within 12 months of your hire date. If you elect the MUS-RP, visit TIAA to choose your investment options. Allow yourself time before the deadline to review all options carefully, as this decision is irrevocable, meaning once made it cannot be changed.

In addition to your mandatory plan, you may contribute extra pre-tax funds toward retirement through supplemental retirement accounts (SRAs). All non-student employees paid through UM payroll are eligible. See the supplemental plans section below.

If you leave UM, you have several options for your MUS-RP funds. You may leave the funds in your account to continue growing tax deferred, roll them into another eligible plan, or take a distribution. Note that in-service distributions are not permitted. If you take a distribution before retirement, federal law requires 20% to be withheld for federal income tax. Contact HRS and consult a financial advisor before making any decision.

If you are an active, inactive, or retired member of TRS or PERS, you may have the option to remain in your current system or move to the MUS-RP. A written election to move to the MUS-RP must be made within 30 days of becoming eligible. Contact TRS or PERS directly to review your options before making a decision, as it is irrevocable, meaning once made it cannot be changed.

Yes. TIAA financial consultants are available for one-on-one sessions at no cost and do not work on commission. Schedule a session by calling 1-800-842-2009 or visiting the TIAA website. For questions specific to your UM benefits, contact the HRS Benefits Team.