Northwestern University, Evanston, Ill., is suspending contributions to its retirement plans for faculty and staff as part of cost-saving measures related to the COVID-19 pandemic.
In a letter on the university's website, officials, including Morton Schapiro, university president, said both the university's 5% automatic contribution and its 5% matched contribution to the 403(b) plan will be suspended on a pro-rated basis from June 11 through December.
At that point, the letter said, the university will evaluate when contributions can be resumed.
"You are able to continue contributing in the meantime toward your retirement plan without a match," said the letter from Mr. Schapiro, Interim Provost Kathleen Hagerty and Craig Johnson, senior vice president for business and finance. "We expect this action alone will save the university tens of millions of dollars and considerably reduce the possibility of further cuts."
The university expects a total shortfall of about $90 million in the current fiscal year ending June 30, according to the letter.
Other measures include increasing the payout rate from the university's $10.8 billion endowment, and a temporary furlough of about 250 employees who are unable to perform their duties remotely.
As of Dec. 31, 2018, the Northwestern University Retirement Plan had $2.8 billion in assets, according to the university's most recent Form 5500 filing.
Jeri Ward, university spokeswoman, and Storer H. Rowley and Jon Yates, university spokesmen, could not be immediately reached for further information.
