January 4, 2021 - Michigan Medicine restored the Basic Retirement Savings Plan university match effective January 1, 2021, six months earlier than anticipated. Michigan Medicine leadership heard from many employees that this benefit was of primary importance, and they are pleased to be able to reinstate the university's two-for-one match, one of the highest matches in our region.
No action is required to receive the university contribution when you are eligible, if you are enrolled in the Basic Retirement Savings Plan. You are eligible to receive the university contribution when you have completed the 12-month waiting period from the date you are first eligible to enroll in the Basic Retirement Plan.
- When will the retirement match take effect?
- The Benefits Office will begin implementation of a January 1, 2021 effective date for reinstatement of the university Basic Plan contribution match. This means that for eligible biweekly paid employees, the university contribution will begin with the January 15, 2021 paycheck. Monthly paid eligible employees will see the contribution reinstated with the January 29, 2021 paycheck.
- Do I need to take any action to receive the match when the university contribution resumes?
- No action is required of you unless you canceled your 5% contribution to the Basic Plan. The university contribution will automatically resume for Michigan Medicine faculty and staff who are enrolled in the Basic Retirement Plan and who have completed the 12-month waiting period.
- What can I do if I reduced or canceled my retirement contributions?
- The Benefits Office will contact the Michigan Medicine faculty and staff who have reduced or canceled their retirement contributions since July 1, 2020 with information on how to reinstate their 5% retirement contributions so they can receive the 10% university match beginning in January 2021 or when they become eligible.
- Will U-M retroactively make up the contribution that was not provided during the suspension period?
- No. The university contributions that would normally have been made between July 1 and December 31, 2020 for plan participants will not be provided.
- Does the one-year waiting period to receive the university contribution start over or will it be extended due to the suspension period?
- The waiting period does not start over. The university contribution will begin or resume based on when you met the waiting period and if you are enrolled in the Basic Retirement Plan.
Retirement Savings Plan Overview
The University of Michigan partners with you to plan for a secure and comfortable retirement. No matter your age or career stage, it is never too late to begin saving – or saving more – for retirement.
The U-M retirement savings plans provide an important source of income in retirement in addition to Social Security and personal savings. U-M does not have a pension plan. Visit Tax Matters for answers to questions about your retirement savings plan contributions and your taxes.
How to Participate
Take advantage of the university’s two-for-one match of your contributions by enrolling in the Basic Retirement Plan.
You may enroll in any plan at any time throughout the year. If you are eligible, you may contribute to all three plans or choose among them. You can also change your contribution amounts and allocations at any time.
Default Investment Funds
If you enrolled after 2008, the TIAA Lifecylce Index and Fidelity Freedom Index funds are the default unless you make a change. The default funds are age-appropriate fund that are based on your age at enrollment and an expected retirement date at age 65. Learn about TIAA Lifecycle Index and Fidelity Freedom Index funds.
Make Your Own Custom Portfolio
If you prefer to create a custom portfolio for your retirement investments, you may choose from over 200 investment funds available through TIAA and Fidelity Investments, including mutual funds, and fixed and variable annuities, domestic and international stock funds, bond funds, money market funds and real estate funds are available, along with a guaranteed fixed annuity and socially responsible funds. Several Vanguard funds are also available, as well as a brokerage option that allows you to select mutual funds outside the TIAA family.
Both TIAA and Fidelity Investments, the university’s retirement savings plan investment companies, offer free one-on-one meetings to discuss your retirement goals.
University of Michigan Benefits Office
Wolverine Tower Low Rise G405
3003 S. State Street
Ann Arbor, MI 48109
The University of Michigan Basic Retirement Plan, 403(b) Supplemental Retirement Account, and 457(b) Deferred Compensation Plan are all non-ERISA governmental plans.