Save with an SRA
Temporary hourly employees may contribute to a 403(b) Supplemental Retirement Account (SRA) with TIAA-CREF or Fidelity at any time.  You contribute a fixed dollar amount with each paycheck; there is no University matching contribution.  Contributions and earnings are tax-deferred, meaning you do not pay state or federal taxes until you take a distribution from the account. 

When do I enroll?
You may open an SRA with TIAA-CREF and/or Fidelity Investments at any time to save for retirement.  You may also increase, decrease, or cancel your contribution at any time.

How much can I contribute?
The annual limit for 2008 is $15,500; the limit is $20,500 if you are age 50 or older.

When may I cash out the SRA?
You may take a cash withdrawal of your SRA accumulations at any age once you have terminated employment.  You may also take a loan from your SRA.  There are three Internal Revenue Code (IRC) triggering events that allow cash withdrawals while employed:

• Disability
• Hardship
• At age 59 ½  or older

How do I enroll?
Complete the Salary or Annuity Option Plan Agreement (PDF) and FAX it to the Benefits Office at 734-936-8835.  Use this form to specify the amount you wish to contribute per pay period to TIAA-CREF and/or Fidelity Investments.  You may also view deadlines to enroll for a specific paycheck at: http://www.umich.edu/~benefits/plans/retire/retdeadlines.htm

How do I open my SRA with TIAA-CREF and/or Fidelity?
There are no forms to complete to open your account.  The Benefits Office will send an enrollment notice to your chosen investment company to create your account once your properly completed and signed Salary or Annuity Option Plan Agreement has been received.  The investment company you selected will then send you a welcome packet with information on how to how to designate your beneficiary.  The investment fund will automatically be an age-appropriate Lifecycle Fund if you select TIAA-CREF or a Freedom Fund if you select Fidelity.

What is a Lifecycle or Freedom Fund?
A TIAA-CREF Lifecycle or Fidelity Freedom Fund is a mutual fund that is a diversified portfolio of other mutual funds offered by that company.  This includes domestic and international stock funds, bond funds, and money market funds.  Each Lifecycle or Freedom fund automatically selects the allocation of stock, bond, and money market funds that are appropriate for a target retirement date of approximately age 65.  The fund will adjust its holdings periodically to maintain an asset allocation appropriate for its target retirement date to maximize returns and minimize risks. 

Lifecycle and Freedom Funds provide a simple solution if you lack the time, confidence, or investment knowledge to create and manage a well-diversified portfolio.  Each fund is professionally managed and provides you with a simple, single investment fund.  Both TIAA-CREF and Fidelity also offer a wide selection of stock, bond, money market, and real estate funds.  If you do not want your investment fund to be a Lifecycle or Freedom Fund, contact TIAA-CREF or Fidelity to designate a different fund.

Manage Your Enrollment
Contact the Benefits Office to ensure the correction deduction is taken and/or to adjust your enrollment in the SRA if you have multiple jobs or change your job at the University.  Situations where this may be necessary include:

• You have more than one temporary job;
• You change temporary jobs (i.e. stop working for one department and start working for a different one);
• If work as a temporary hourly employee and as a permanent, regular employee;
• You change job titles from a temporary hourly employee to a permanent, regular employee or vice versa.