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.
About the Basic Retirement Plan
The Basic Retirement Plan offers a two-for-one match of your contributions and immediate vesting. Eligible employees can enroll at any time using Employee Self-Service > Benefits in Wolverine Access. University contributions begin after a 12-month waiting period. 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.
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 for U-M Faculty and Staff
Visit these sites at any time to open your account, select your investment funds, and name your beneficiary.