Save more for your retirement with a 403(b) Supplemental Retirement Account (SRA) and meet your savings goals faster. You contribute a fixed dollar amount each pay period, up to the IRS limit. Since the university does not match these contributions, you have more options for accessing the funds while you are still employed.
Type of Plan
The SRA is a 403(b) plan. You have two options for the type of contributions you make to the plan, which determine whether you pay income tax on contributions to the plan or on distributions from the plan at a later date:
- Tax-deferred contributions with income tax due upon distribution
- After-tax Roth contributions with tax-free qualified distributions
The following groups are eligible to enroll in a 403(b) SRA:
- All regular, active faculty or staff members (including Supplemental Instructional staff), House Officers, Research Fellows, Professional Specialists, GSIs, GSSAs, and GSRAs) with a 1% or greater appointment of at least four months duration paid by the university
- Rehired retirees with funding and effort (including emeritus titles)
- Temporary staff
You must receive earned compensation reportable on a W-2 and subject to federal, state, and FICA tax to be eligible. Stipend and fellowship funding are not eligible to be contributed.
You may invest your funds with two investment companies—TIAA-CREF and Fidelity. Contributions may be allocated to either or both, and contributions may be distributed among the approved investment funds offered.
If you choose to make after-tax Roth contributions, TIAA-CREF and Fidelity Investments will track your after-tax contributions and associated earnings separately within your existing U-M account(s). You will not have separate accounts for your Roth contributions.
Enrollment for Temporary Employees
Temporary employees enroll in a 403(b) SRA by completing the Salary or Annuity Option Plan Agreement (PDF) and faxing it to SSC Benefits Transactions at (734) 763-0363. Use this form to specify the amount you wish to contribute per pay period to TIAA-CREF or Fidelity Investments (or both).
Call the SSC Contact Center to ensure the correct deduction is taken or to adjust your enrollment in the 403(b) SRA if you have multiple jobs or change your job at the university. Situations where this may be necessary include:
- You have more than one temporary job at the university;
- You change temporary jobs (i.e., stop working for one department and start working for a different one);
- If work as a temporary hourly employee and as a regular U-M employee;
- You change job titles from a temporary hourly employee to a regular U-M employee or vice versa.
Extra to Basic SRA Plan
The Extra to Basic Retirement Plan option is not available for new enrollments. Employees who already participate in the Extra to Basic Retirement Plan may make changes, cancel, or re-enroll, but all new enrollments must go to a 403(b) SRA account.