Annuity

For benefits-eligible employees as of August 31, 2006:
Note that a person may have two different percentages in the same fiscal year.

Age of Qualifying Employee on January 1, 2011 University Contributions for Calendar Year 2011 as a Percent of the Base Salary
Under age 45 7.0%
45-49 8.5%
50 and over 11.5%

For employees hired or rehiredon September 1, 2006 or after:
Note that a person may have two different percentages in the same fiscal year.

Years of Eligible Service University Contributions for Calendar Year 2011 as a Percent of the Base Salary
2-10 7.0%
More than 10 10.00%

When budgeting to hire a new employee from outside the University (i.e. not a transferring employee), plan for the annuity expense to the University to be $0, as employees will not receive the University contribution until after two years of eligible service. For many positions either a transfer or new employee may be hired, so it may be appropriate to budget for some annuity expense.

The RAPS Compensation Model includes the standard rules, and annuity is calculated, within the model.