Announcements & Features:
one-year wait for 10% U-M contribution to Retirement Savings plan
Effective January 1, 2010, individuals hired or newly eligible on or after January 1, 2010 must complete a 12-month waiting period to become eligible to receive the 10% U-M contribution to the Retirement Savings Plan.
Eligible individuals may enroll at any time to contribute 5% of their eligible gross salary to the Retirement Savings Plan. After 12 months of continuous eligibility, the university will contribute an amount equal to 10% of the eligible gross salary. For more information, see Waiting Period for University Retirement Plan Contributions.
This change came about as the result of a recommendation by the Committee to Study Retirement Savings Plan Vesting Options. Early last fall, university executive vice presidents charged the Committee on Sustainable Health Benefits (COSHB) and the Committee to Study Retirement Savings Plan Vesting Options to devise the means to maintain the university's highly competitive health care and retirement benefits while helping to control the unsustainable growth in the university’s costs, which threatens our ability to carry out our core missions in education, research, and patient care. The retirement savings committee was charged to recommend waiting periods and/or vesting options for future employees. The committee worked from September through December 2008 and issued recommendations to the university's executive vice presidents at the end of 2008. See the Benefits Stewardship website for more information.