Email # 1 to Faculty and Staff regarding the new MDCP
You are receiving this email as you will have some upcoming choices regarding your PERA retirement
Last spring, after discussions with faculty and staff groups, the Board of Trustees approved creating a
retirement plan called the Mines Defined Contribution Plan (MDCP). This new plan will go into effect
January 1, 2017, with VALIC serving as the administrator to the plan.
Important: Education sessions discussing the new plan and your options will be offered starting
in December and running through February. You wil receive an email soon announcing the
dates and times of these sessions.
What does this mean?
Starting January 1, 2017, most newly hired Mines faculty will become participants in the MDCP instead
of Colorado PERA.
How does this affect me as an existing employee in PERA?
In January, existing Mines faculty who are PERA members must decide whether to remain in PERA or to
transition to the MDCP. This is a one-time, irrevocable choice that is statutorily required to be made
regarding remaining in PERA or moving to the MDCP.
How wil this work?
• You may choose to remain an active PERA member in which case you and Mines wil continue
contributions to PERA; OR
• You may choose to become a participant in the new MDCP, and
o leave your existing account with PERA and designate al future contributions to the
o rollover your employee PERA contribution balance plus interest from PERA to the MDCP
and designate all future contributions to the MDCP.
How does the Mines Defined Contribution Plan work?
MDCP participants make an 8% pre-tax contribution (the same as the current contribution to PERA) and
Mines will make a 12% contribution to their accounts. Participants will direct the investment of the
funds through VALIC into a variety of investment options. The income stream at retirement will depend
how the invested contributions perform.
How do I get more information?
This is an important decision. As noted above, starting in December, we will offer a series of education
sessions. These sessions will provide information about the current PERA Defined Benefit Plan, the new
Mines Defined Contribution Plan, and your options. We highly encourage you to attend one of these
sessions. In addition, starting in January you can schedule one-on-one meetings with PERA
representatives and VALIC financial advisors. Please watch your email for more information about the
Please also visit the Human Resources website.
If you have questions about the upcoming implementation, please contact the Benefits Office at (303)
273-3052. However, please understand that we cannot provide investment advice or advice about
which plan to choose.