The University of California, Maryville, announced Wednesday that more than 1 of its more than 2,600 employees will join the California State Teachers’ Retirement System (CalSTRS) as part of a $9,000 pay raise that is expected to be phased in over the next two years.
Maryville is the first university in the United States to adopt the new model.
CalSTRS, the state’s pension fund, will also receive more than $5 million in direct payments in the form of rebates and benefits.
The pay hike is expected over three years, and is part of an ongoing push by the state and CalSTRES to improve its retirement programs and improve the quality of life for workers.
Maryland also announced a $3 million pay raise, as part the state legislature’s $1.9 billion plan to improve employee pensions.
In addition, Maryland Gov.
Larry Hogan, the first statewide elected official to join the pension system, is seeking a $1 million pay boost as part a $10 million pension plan.
Hogan has also said that he wants to increase the retirement age to 65 from 66.
This would be a significant change to the current retirement age of 62 for state employees.
Marylands plan also includes a $2.5 million fund to help workers meet the cost of medical and other medical care in retirement.
The new pay raise is expected in 2020.
Cal STRS will be the first state agency to accept employees who were not previously employed by a local university.
The plan comes amid the continuing decline of local universities as the state grapples with the state-sponsored bankruptcy of the University of Phoenix.
Last month, Hogan announced plans to give $250 million in state funding to the University and another $150 million to other universities.
This article originally appeared on Mashable, a news source owned by Univision Communications Inc.