You can terminate from the University at any time and start your retirement plan annuity (lifetime income). However, if you meet the age and the requirements for continuous years of service listed below, you can retire from UM. See the Standard Practice Guide, section 201.83, for definitions of continuous years of eligible service and other requirements needed to retire.

Age at Retirement	Years of Service
50 or younger	30
51	28
52	26
53	24
54	22
55	20
56	18
57	16
58	14
59	12
60 or older	10

Service to Retire with Benefits
Effective June 11, 2004, faculty and staff members who drop below a 50% appointment effort may retain their accrued service to retire with medical, prescription drug, dental, and life insurance benefits under a new policy. Previously, service to retire with these benefits was dependent upon working continuously at a 50% or greater effort. However, a reduction below 50% resulted in the loss of all previously accrued service to retire with benefits. This created an unintended hardship for faculty and staff that had a short reduction in effort. See the Retirement Bridge Policy section for more information.

Receiving Annuity Income
Partial or full annuities may begin at any time after retirement, phased retirement, or termination regardless of your age or length of service. Generally, you can wait no later than April after the year in which you reach age 70 1/2 to begin receiving income if you are not working.

You have several options for receiving the income, including a joint life survivor option which will provide a lifetime income to both you and your spouse or other qualified adult.

There is no requirement that you draw an annuity from these accounts. You may withdraw the funds in a single sum or periodically, draw interest only, or receive distributions necessary to meet IRS minimum distribution guidelines.

Retirement Counseling
The Benefits Office recommends that you meet with a counselor from your retirement investment company as you begin planning your retirement income options. Approximately one month before your proposed retirement date, make an appointment with the Benefits Office to discuss your university medical insurance, Medicare, Social Security, and other retirement issues.

Your Retirement Plan Income Options at Termination
If you end your employment at the University, several options are available.

• You can continue contributions to the plan on your own on an aftertax basis by sending premiums directly to TIAA-CREF. Fidelity can be contacted about making aftertax contributions to nonretirement plans.
• You can "suspend" contributions and let interest and dividends continue to accrue until you wish to begin receiving your retirement benefits.
• You may transfer full or partial accumulations in your basic retirement plan between TIAA-CREF and Fidelity.

Limitations on Cashing Out
Up to 100% of accumulations in TIAA, CREF, and Fidelity are available for cash withdrawals for terminated staff who are age 55 or older, and to retirees. Withdrawals from the TIAA Traditional Account are made over a ten-year period. Cash withdrawals will be subject to a 20% federal withholding and a 10% IRS penalty may apply.