Revision Allows More Flexibility for Cash Withdrawals
In February 2025, U-M's executive leadership revised the Basic Retirement Plan policy to expand current and former faculty/staff eligibility for cash withdrawals from the 5% employee 403(b) contribution.
Current Employees
The change allows current, eligible faculty and staff to take cash withdrawals from their employee-funded account only, provided they meet certain conditions:
- Faculty/staff is totally and permanently disabled (no age criteria)
- Faculty/staff has an IRS-qualifying financial hardship (no age criteria)
- Faculty/staff is age 59½ or older
The revision does not apply to the Basic Retirement Plan 10% university contribution or the employee 5% 401(a) contribution.
Rehired Retirees and Rehired Former Employees
Rehired retirees and rehired former employees, however, are able to take cash withdrawals from the 5% employee contribution and the 10% university contribution at age 59½ and older.
Phased Retirement Employees
Employees in phased retirement status also may take withdrawals from the 5% employee contribution and 10% university contribution at age 59½ and older.
Former Employees
Former employees may take cash withdrawals from their Basic Retirement Plan 5% employee contribution, as well as the 10% university contribution with no qualifying criteria.
Previously, a former employee had to be age 55 or older to enact a cash withdrawal from the 10% university contribution.
For More Information
Contact the Shared Services Center - HR Customer Care at the following for more information:
(734) 615-2000
[email protected]
Monday through Friday, 8 a.m.-1 p.m. and 2-5 p.m.
The Basics of the Basic Retirement Plan
The Basic Retirement Plan offers immediate vesting and a two-for-one university match. Enrolled participants contribute 5% of eligible compensation and after a 12-month waiting period, the university contributes 10% of eligible compensation. You may enroll at any time, however you must be enrolled in the plan in order to receive the university contribution
Eligible employees can enroll at any time using Employee Self-Service > Benefits in Wolverine Access. Contributions and earnings are tax-deferred until you take a distribution. You do not pay state or federal income taxes on your contributions at the time they are made. However, you still pay the 7.65% FICA (Medicare and Social Security) tax.
Investment Options
You may invest your funds with two investment companies — TIAA and Fidelity Investments. Contributions may be allocated to either or both, and contributions may be distributed among the approved investment funds offered.
TIAA and Fidelity Investments Websites
Visit these sites at any time to open your account, select your investment funds, and name your beneficiary.
TIAA
tiaa.org/umich
Fidelity Investments
netbenefits.com/uofm
For details about how these companies can help you manage your Basic Retirement Plan, view the Fidelity and TIAA information flyers.
Keep Your Account Secure
Here are 5 steps you can take to help protect your retirement savings account by adding your credentials and security measures to your TIAA and Fidelity online profiles. These steps can help prevent unauthorized use of your identity and information, as well as empower you to monitor your account for suspicious activity.
- Set up online access with a unique username and password.
- Sign up for 2-factor authentication at login.
- Add or update your mobile phone number and email address so you can be contacted in real-time in case of fraud or unusual account activity.
- Sign up for electronic delivery of your quarterly statements and other notifications.
- Activate voice biometrics to create your unique voiceprint as an additional security method.