FAQs Regarding 2021 Pause to Regis' Retirement Contribution for Employees

To benefits-eligible employees:

Please see the following "Frequently Asked Questions" in regard to the retirement benefits pause that will take effect for one year starting Jan. 1, 2021. We hope these address your concerns.

Why will the pause comprise the entire 2021 calendar year instead of aligning with FY21 which ends April 30?

Employer retirement plans must follow significant regulatory guidelines. Based on the University’s current plan, changes must be effective January 1 through December 31. Doing otherwise puts our plan at risk, and requires the university to conduct “discrimination testing” to assure that the plan isn’t applied inequitably to employees. We could manage this process, but ending the contribution earlier would require the university to retroactively make contributions not made in the first half of the year, which would negate any needed savings.

Are we anticipating a shortfall in the next fiscal year starting May 1 and hope cuts made this fiscal year will give the university a cushion?

While we expect enrollment improvement next fall, we can’t balance our budget on that hope. We expect today’s increased new starts will positively affect the budget in 2-3 years. In the interim, we need to see if the impact of COVID-19 will extend past this fiscal year; continuing the pause until December 2021 not only meets current plan requirements but gives us a cushion against revenue reductions that we expect in next fiscal year, as our recommended tuition increases won’t mitigate the COVID-19 impact on enrollments.

Did the university consider a “progressive” approach in which employees who are the lowest paid and/or the farthest from retirement – those most affected – were spared?

Eligibility for the plan is based on employment status, therefore we are legally bound to offer the exact same benefit to employees regardless of their income; doing otherwise places the plan at risk.

1. Could Empower provide employees with a planning calculator to evaluate the personal impact of the loss of the employer retirement contribution?

There are several tools to help an employee determine the impact of this pause on the Empower website at empower-retirement.com. Once logged in, go to “My Financial Path” to gain access to their Learning Center. Additionally, Empower offers regular webinars to assist with overall retirement planning as well as individual one-on-one sessions including the following for November: Empower November Education Series.

1. Can employees make up the difference in contribution that would have been provided by Regis?

Yes, an employee can make additional contributions through the employee before-tax voluntary plan, up to the 403(b) legal limits. Employees interested in starting a voluntary contribution or want to make changes to their current voluntary plan should contact Empower at empower-retirement.com; or 1-855-756-4738.

1. I talked with an Empower representative and they said the pause doesn’t have to be a year-long.

Keep in mind that an Empower representative is familiar with their products generically, but not with the university’s specific plan or decisions around our plan. Employer plans are designed to serve the employee and the organization. Empower consultants can assist you with your specific account, however, they are not equipped to speak to the requirements of our plan and the potential risks associated with mid-year plan changes. For the reasons noted above, the pause does need to be for the entire plan year of January 1 to December 31, 2021.

Visit https://regis365.sharepoint.com/sites/HRInfo/SitePages/Home.aspx for more HR resources.