Staff Employees' Pension Plan

The UND Employees’ Pension Plan was closed to new entrants effective December 31, 2017. Pension Plan participants who elected, as part of the Retirement Plan Choice offering, to remain in the Pension Plan continue to earn credited service.

The UND Employees’ Pension Plan is a defined benefit plan under Section 401(a) of the Internal Revenue Code in which participants may receive a specific monthly benefit upon retirement age, based on years of service and salary history.

Vesting is used to determine when a participant is fully entitled to pension plan benefits. Vesting is counted in full years of service from the first day of work to the date a participant retires or leaves the University. To receive benefits from the plan, a participant must be 100% vested. To become 100% vested, a participant must complete five years (60 months) of vesting service.

Your Pension Resources (YPR) Estimator Tool

Active Pension Plan participants have access to YPR, which is web-based tool to estimate a pension benefit on a future eligible retirement date.

Retiring at Age 65

Plan benefits are determined according to a formula. When a plan participant retires at age 65 with at least five years of vesting service, the annual pension benefit will be calculated in the following way:

1.45% x Final Average Pay x Years of Credited Service = Annual Retirement Benefit

Final Average Pay: This is the average of pay for the five consecutive highest paid calendar years out of the last 10 calendar years of plan participation.

Credited Service: The pension benefit is based, in part, on the amount of credited service a participant has earned. It is counted in completed full years of service. One year of credited service is earned for each plan year in which a participant completes 1,000 or more hours of service after age 21.

Retiring Before Age 65

A participant can choose to retire and commence their pension benefit before their normal retirement age (65), if they are at least age 55 and have completed 15 years of credited service, or are at least age 62 and have completed 10 years of credited service. They can choose to have their pension benefit payments begin any time after they become eligible for early retirement. However, if they want benefits to start before age 65, the plan benefit is reduced. This reduction reflects the fact that plan payments are anticipated to be made over a longer period of time.

Disability Retirement

The University provides a disability retirement benefit to protect staff members from loss of income in the event they become permanently, continuously, and totally disabled. To be eligible, the staff member must be a participant in the Employees’ Pension Plan, have at least 5 years of vested service, have become disabled while an active employee of the University and have been determined to be totally and permanently disabled by the Plan Administrator. A disability approval by either the University’s Long Term Disability Insurance or the Social Security Administration is generally considered approval for a University disability retirement. The disability retirement benefit is determined by using the same formula as if the staff member had reached age 65 on the day the disability began.

For additional information, please contact:

ask HR
200 Grace Hall
Phone: 1-574-631-5900
Fax: 1-574-631-8263

Additional Information

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