University Of Michigan Benefits Office

The U-M 457(b) Plan at a Glance

Type of Plan	457(b) governmental deferred compensation plan
Investment Companies	TIAA-CREF and Fidelity Investments
Enrollment	Voluntary
Enrollment Deadline	Enrollment may occur at any time, effective the month following the date your applications are filed with the Benefits Office.
Vesting Schedule	All contributions are immediately vested.
Eligibility	All faculty and staff members with an appointment effort of 1% or greater, and University funding for 4 continuous months or longer. Temporary staff are not eligible to participate.
Tax Treatment	Contributions and earnings are tax-deferred until distribution. Subject to FICA withholding, but not state or federal taxation at time of contribution. Taxed as ordinary income at distribution.
Contribution Rate	You elect to contribute a fixed dollar amount per pay period. There is no University contribution.
Changing Your Contribution	You may increase, decrease, or cancel your contribution at any time; all such changes are effective the month following the date your forms are filed with the Benefits Office.
Changing Investment Funds	You may change your investment funds at TIAA-CREF and Fidelity anytime.
Transfers Between TIAA-CREF and Fidelity	You may transfer accumulations between TIAA-CREF and Fidelity at any time. Contact the company that will receive the transfer for assistance.
Eligible Compensation	You may make contributions on earned compensation that is paid to you as a U-M faculty or staff member, subject to federal income tax withholding through the University, and reported on a W-2 issued by the University.
Your Limit for 2008	$15,500 general limit. $20,000 if you are age 50 or older. Contributions made to another plan, except another 457(b) plan, will not reduce your limit for making contributions to the U-M 457(b) plan. Consult with a qualified tax advisor to ensure your total contributions to all plan types do not exceed Internal Revenue Code limits.
Cash Withdrawal Current Faculty or Staff Member	One-time withdrawal if your account balance is no more than $5,000 and you have made no contributions to the plan for two years prior to the date of distribution. At age 70 ½ or older.
Cash Withdrawal Former Faculty or Staff Member ¹	At any age.
Rollovers	You may rollover your U-M 457(b) to another eligible retirement plan at any age once you have retired or terminated employment. See Rollovers Out of the U-M Plan for important tax implications.
IRS 10% Penalty Applies?	No
Minimum Distribution at 70 ½?	Yes, once you have retired or terminated employment 1.
Loans	Yes
Options When You Leave U-M	Lifetime or fixed-period annuity Cash withdrawal (partial, total, systematic) Minimum distribution at 70 ½ Rollover to another eligible retirement plan Leave the accumulations until a later date.
Forms Needed to Enroll	Salary Deferral Agreement This authorizes the payroll deduction and indicates the amount you wish to contribute to TIAA-CREF and/or Fidelity. TIAA-CREF and/or Fidelity application(s) These forms open your account(s) with TIAA-CREF and/or Fidelity. You indicate the funds in which you wish to invest, your beneficiary, and mailing address.
Where to Return Forms	By FAX (for faster service) 734-936-8835 By Mail Benefits Office – Retirement Plan Area Wolverine Tower – Low Rise G405 3003 South State Street Ann Arbor , MI 48109-1278

¹ A former faculty or staff member is someone who has retired or terminated employment with the University of Michigan. Termination of employment does not include being on a layoff( RIF), leave of absence, phased retirement, furlough, long-term disability, 0% effort appointment, or periods of non-appointment.

Limitations
The University in its sole discretion may modify, amend, or terminate the benefits provided with respect to any individual receiving benefits, including active employees, retirees, and their spouses, partners, and dependents. Although the University has elected to provide these benefits this year, no individual has a vested right to any of the benefits provided. Nothing in these materials gives any individual the right to continued benefits beyond the time the University modifies, amends, or terminates the benefit. Anyone seeking or accepting any of the benefits provided will be deemed to have accepted the terms of the benefits programs and the University's right to modify, amend or terminate them.