May 5, 2020 – Michigan Medicine Temporary Suspension of University Contribution to the Basic Retirement Plan
U-M will temporarily suspend the university contribution to the Basic Retirement Plan from July 1, 2020 through June 30, 2021 for all faculty and staff of Michigan Medicine, which includes the U-M Medical School. Faculty and staff who have an appointment at both Michigan Medicine and campus will have the university contribution suspended if the Michigan Medicine fraction is 51% or greater of the total appointment effort. Bargained for staff should refer to their collective bargaining agreement. This action is part of Michigan Medicine’s economic recovery plan to address the financial implications of the COVID-19 pandemic.
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.
View a short video for an overview of your U-M retirement savings plan options (2:13).
Note: The Basic Plan two-for-one university contribution after 12 months mentioned in the video will be temporarily suspended from July 1, 2020 through June 30, 2021 for all faculty and staff of Michigan Medicine, which includes the U-M Medical School.
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. Note: U-M will temporarily suspend the university contribution to the Basic Retirement Plan from July 1, 2020 through June 30, 2021 for all faculty and staff of Michigan Medicine, which includes the U-M Medical School.
Save more for retirement through a 403(b) Supplemental Retirement Account (SRA) and the 457(b) Deferred Compensation Plan. Contributions can be made on a pre-tax or after-tax (Roth) basis.
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.
Learn more about the investment companies and funds.
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.