Benefits Stewardship at Michigan header art
Home button Background button Retiree Health Benefits button Health Care Cost Sharing button Retirement Savings button Questions and Answers button Links button Contact button

RETIREMENT SAVINGS DECISIONS

“The changes are necessary to help control the costs. Careful planning, including financial analysis and benchmarking, and the guidance of the committees has ensured that university benefits will stay highly competitive with a generous retirement program and a choice of high-value, comprehensive health plans.”

— Teresa A. Sullivan
Provost and Executive Vice President for Academic Affairs

 

U-M contributions to employee retirement savings accounts represent another area of great expenditure, and one where the University contributes a greater proportion than the average of our peer institutions. In 2007, U-M employees received $186 million in U-M contributions to retirement savings accounts. This figure is projected to reach more than $700 million by 2027 if no action is taken.

After careful study of the report of the Committee to Study Retirement Savings Plan Vesting Options, the University will adopt the following.

  1. We will maintain the current ten-percent-of-salary contribution amount the University makes toward this important retirement savings benefit.
  2. Faculty and staff hired on or after Jan. 1, 2010, will have a one-year waiting period before they begin to receive University contributions toward the U-M Retirement Savings Plan.

View final report of the Committee to Study Retirement Savings Vesting Options (PDF)