RETIREMENT SAVINGS DECISIONS
“The
changes are necessary to help control the costs.
Careful planning, including financial analysis
and benchmarking, and the guidance of the committees
has ensured that university benefits will stay
highly competitive with a generous retirement
program and a choice of high-value, comprehensive
health plans.”
— Teresa A. Sullivan
Provost and Executive Vice President for Academic Affairs |
U-M contributions to employee retirement savings accounts
represent another area of great expenditure, and one
where the University contributes a greater proportion
than the average of our peer institutions. In 2007, U-M
employees received $186 million in U-M contributions
to retirement savings accounts. This figure is projected
to reach more than $700 million by 2027 if no action
is taken.
After careful study of the report of the Committee to
Study Retirement Savings Plan Vesting Options, the University
will adopt the following.
- We will maintain the current ten-percent-of-salary contribution amount the University makes toward this important retirement savings benefit.
- Faculty and staff hired on or after Jan. 1, 2010, will have a one-year waiting period before they begin to receive University contributions toward the U-M Retirement Savings Plan.
View final report of the Committee to Study Retirement Savings Vesting Options (PDF)
|
