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Retirement Benefits for Those Hired After January 1, 2021

RETIREMENT PLAN OVERVIEW

All employees hired after January 1st, 2021 can participate both in the Deseret 401(k) savings plan and the Employer Discretionary Retirement Contribution (EDRC).

EMPLOYER DISCRETIONARY RETIREMENT CONTRIBUTION (EDRC)

For eligible employees hired on or after January 1st, 2021, BYU provides and fully funds an EDRC equal to a percentage of their compensation. BYU chooses the percentage of compensation you will receive and this percentage is subject to change each year. The EDRC is calculated and deposited into your Deseret 401(k) account at the end of each regular pay period. For employees hired after January 1st, 2021, the EDRC is 8%.

Here is some further information about the EDRC:

  • This EDRC is 100% funded by the employer and employees are immediately vested in it.
  • Because they are immediately vested, employees who leave BYU at any time can take the full 401(k) and EDRC amounts with them.
  • The EDRC is in addition to any employee contributions and any BYU match.
  • The BYU match and EDRC do not impact the amount of money employees can contribute to the 401(k), but are in addition to these limits.  In 2021, the 402(g) limit for savings plans remains $19,500, with a $6,500 catch-up contribution limit for those aged 50 or older. 

RETIREE MEDICAL PLAN

Employees that retire from BYU with at least 10 years of full-time eligible BYU service may qualify for the retiree medical plan. Please see the information below regarding eligibility and timeframes.

  • Employees that started working for BYU on or after January 1st, 2021, may be eligible for retiree medical when they are at least age 60 with 10 years of eligible service.  Between the ages of 60 and 65, the retiree may enroll in the same plans offered to our active employees; however, the retiree will pay a larger share of the premium.
  • BYU contributes a fixed dollar amount toward the monthly medical premiums in retirement for individuals between the age of 60 and 65. The amount BYU contributes depends on the employee’s years of eligible credit (see table below)   At 10 years of eligible service BYU will contribute 50% of the fixed dollar amount Once an employee reaches 20 years of eligible service, BYU will pay 100% of the employer fixed dollar amount toward the retiree medical premiums. 
  • NOTE:  BYU’s maximum contribution does not pay the entire monthly premium. The employee is responsible for paying the balance.
  • BYU’s fixed dollar contribution for retiree medical ends at age 65.

Your Years of Eligible Credit Percentage of Maximum Employer Contribution
Fewer than 10 years Not eligible
10 to 11 years 50%
12 to 13 years 60%
14 to 15 years 70%
16 to 17 years 80%
18 to 19 years 90%
20 or more years 100%

  • At age 65 retirees must enroll in Medicare as their primary insurance. A retiree may enroll in the DMBA Medicare Supplement plan, Deseret Alliance, to supplement their Medicare benefits; however, the retiree will pay the full Deseret Alliance premium.  They could also look for a different supplement or Medicare Advantage plan on the market.
  • An employee has the option to pick up different amounts of Retiree Supplemental Group Term Life insurance (RSGTL) in retirement. For more information on RSGTL, please look at the Summary Plan Descriptions for that plan at www.dmba.com. This description is found by going to “My Plans,” “Summary Plan Descriptions,” “Other Handbooks,” and then under the “Life and Disability Plan” section, select “Retiree Supplemental Group Term Life: New Hires.”

Information on this page is for general reference only.  See the appropriate DMBA Handbook for more complete information on retirement programs.