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University of Utah cuts 401(a) employer retirement contributions
For new hires starting July 1, 2027, the university lowers the employer 401(a) contribution cap to 10%, with extra match tied to employee contributions.
The University of Utah will cut retirement contributions for new employees by nearly 30%, reducing its 401(a) employer contribution from 14.2% to a maximum of 10% for people hired after July 1, 2027, according to Insurance Business. The change sets a 6% university contribution to employees hired on or after July 1, 2027, and it adds an additional 4% university match only if the worker elects to contribute at least 4% of their own salary to a supplemental 403(b) account, bringing total employer support to 10%. University chief human resource officer Jeff Herring, based in Salt Lake City, told the school’s Academic Senate on August 25, 2026 that the current rate was a “truly a national outlier” and that the university had been “dramatically overinvesting” in retirement benefits. The goal is to use the savings to build a larger total compensation pool, with the university focusing on employees earning less than $80,000 annually and roles facing recruitment and retention challenges, though it stopped short of guaranteeing salary increases. The university said existing employees, and anyone hired before July 1, 2027, are grandfathered into the current 14.2% plan. The retirement benefit shift also follows a January 2026 adjustment that introduced a four-year vesting requirement for new hires receiving the 14.2% contribution, meaning those leaving before completing four years would forfeit those funds.