CU Retirement plans vary in type. There are two basic plan types: Defined Contribution (DC) Plan and a Defined Benefit (DB) Plan.

Plan Type Features Defined Contribution (DC) Plan Defined Benefit (DB) Plan
Plans offered by CU
  • University of Colorado 401(a) - Mandatory Plan
  • PERA Defined Contribution Plan - Mandatory Plan
  • University of Colorado 403(b) - Voluntary Plan
  • PERA 401(k) - Voluntary Plan
  • PERA 457 - Voluntary Plan
  • PERA Defined Benefit Plan - Mandatory Plan
Contributions
  • Employer and Employee Contributions
  • Pretax Payroll Deductions
  • Employer and Employee Contributions
  • Pretax Payroll Deductions
Allocations (Investing)
  • The employee owns the account
  • The employee manages and allocates the investments within the plan's portfolio options
  • The value of the employee's investments increase or decrease as the market changes
  • Contributions for all employees are pooled and invested by asset managers in a diversified portfolio of assets
Distributions
  • The balance in the account at the time of retirement or separation is available to the employee, and they may take the distribution or cash out
  • The employee must meet age requirements
  • A monthly benefit is calculated based on: Years-of-Service and Highest Average Salary for a specified amount of years
Longevity of the Benefit
  • The benefit ends when the money in the account is exhausted through distributions or lump sum withdrawal
  • Monthly distribution amount is guaranteed for the remainder of the retiree's life
  • Potential annual increase