Duke University, Durham, N.C., announced it would restore the employer contribution to its 403(b) Faculty and Staff Retirement Plan, effective July 1.
In a message sent June 17 to all Duke faculty and staff signed by President Vincent E. Price, Provost Sally Kornbluth, Chancellor for Health Affairs A. Eugene Washington and Executive Vice President Daniel Ennis, not only will contributions be restored, but plan participants will receive a lump-sum payment valued at the contributions they would have received from Jan. 1 through June 30.
Effective July 1, the university will contribute 8.9% of a participant's annual salary if it's up to $69,400, and 13.2% of annual salaries more than $69,400 and up to $290,000.
The university announced in May 2020 that it would temporarily suspend contributions to the plan from July 1, 2020, through June 30, 2021 as a cost-cutting measure to mitigate the loss in revenue due to the coronavirus pandemic.
Though a university spokesman declined to disclose the plan's size, the Faculty and Staff Retirement Plan had $6.91 billion in assets as of Dec. 31, 2019, according to its latest Form 5500.