Assistant Professor, Research & Learning Services Librarian Preston Medical Library, University of Tennessee Graduate School of Medicine Knoxville, Tennessee
Objectives: Full-time academic medical librarians at public institutions are typically provided with an employer-sponsored retirement plan, a vital benefit to ensure long-term financial stability, particularly as COVID-19 restricts salary raises. This study examines three retirement plan categories offered to librarians at state university systems: defined benefit (pension), defined contribution (ORP), and hybrid (pension/ORP components) plans. This study analyzes all currently available plans to assess whether a medical librarian can expect consistent benefits across state systems and plan categories or whether major differences exist.
Methods: States plus the District of Columbia were split into seven geographic groupings based on established NNLM Regional Medical Library regions. Researchers gathered pertinent data for every public state university system; information was only obtained for plans that a new employee could enroll in. Due to limitations, community colleges and private institutions were excluded. Because some institutions use a formula based on age and/or salary, this study uses a 35 yr. old individual earning $60,000 annually. Overall, 77 ORP plans, 32 defined benefit plans, and 9 hybrid/alternate plans were examined for employer contributions, required employee contributions, vesting periods, and other requirements. Retirement calculators were then used to project benefits.
Results: All states offer a retirement plan with 46 offering an ORP style plan, 29 providing a defined benefit or hybrid plan option, 2 states providing a defined benefit option at some universities, and 1 state providing an ORP style plan at some universities. ORP plans vary greatly from 5% - 15.25% employer contributions. Region 5 had the highest average employer contribution (10.95%), while Region 2 had the lowest (8.02%). Defined benefit uncapped multipliers ranged from 1% - 2.5%. Required employee contributions to defined benefit and hybrid plans ranged from 0% - 14%.
Conclusions: Retirement plan benefits are highly variable as to the state and/or university providing them. Some states offer generous plans, while others are far more modest. Vesting requirements for employer contributions remain an issue in several states with some plans requiring as many as 10 years of service. Six states university systems in whole, and one state in part, do not participate in FICA (Social Security), thus placing a greater weight on selected retirement plans. Prospective employees, particularly those seeking long-term positions, must be aware of available retirement plans to make an informed choice.