Understanding Your U-M Retirement Benefits
As a U-M employee, you have access to one of the most generous retirement programs in higher education. But with multiple plan types, contribution options, and eligibility rules, it’s easy to miss opportunities to optimize your financial future.
Whether you’re in healthcare, research, administration, or teaching, we help you navigate your U-M retirement benefits, from the Basic Plan to the 457, so you can retire with confidence.
How the 403(b) and 457(b) Plans Work at U-M
403(b) Basic Retirement Plan
- The Match: When you contribute 5% of your salary, U-M contributes 10%, giving you a total of 15% toward retirement. This starts after 1 year of employment.
- Vesting: You’re contributions and the University’s contributions are fully vested right away. Meaning there is no payback if you change employers.
- Investment Options: Choose between TIAA and Fidelity, or split your contributions between both.
403(b) SRA (Supplemental Retirement Account)
- Allows additional voluntary contributions beyond the Basic Plan.
- Offers both pre-tax and Roth options for tax diversification.
457(b) Deferred Compensation Plan
- Ideal for high earners who want to save more on a tax-deferred basis.
- No early withdrawal penalty after separation from service, regardless of age.
We help you understand how to balance contributions, manage risk, and align your investments with your long-term goals, all within the structure of your U-M benefits.
Contribution Strategies for U-M Employees
Whether you’re active faculty, GSI, Research fellow, or staff member, your contribution strategy should reflect your unique U-M role and career stage.
We help you:
- Maximize the Match through your Basic Plan contributions
- Choose between Roth vs. Traditional contributions based on your tax outlook
- Coordinate your TIAA and Fidelity accounts with outside IRAs or brokerage accounts, along with your spouse’s employer benefits.
- Plan for U-M retirement eligibility and long-term income needs
We also help you take advantage of Flexible Spending Accounts (FSAs), Health Savings Accounts (HSAs) and other university-sponsored benefits that support your financial wellness.
Planning for Retirement Eligibility at U-M
Your U-M retirement eligibility is based on your age, years of service, and appointment type. We help you:
- Estimate your retirement eligibility date using Wolverine Access
- Understand how your U-M retiree health benefits integrate with Medicare
- Project your retirement income and expenses
- Plan for withdrawal sequencing and required minimum distributions (RMDs)
Beyond retirement, we can also help you plan for transitions, whether you’re changing roles within the university, retiring, or moving on to a new opportunity.
How Mercer Advisors Helps U-M Employees
At Mercer Advisors, we specialize in helping U-M employees and retirees turn their complex benefits into a clear, actionable financial plan.
- Maximize your 403(b) match and supplemental plan contributions
- Coordinate TIAA and Fidelity investments into one retirement strategy
- Model retirement income based on U-M eligibility and service years
- Evaluate Roth vs. Traditional contributions for tax efficiency
- Plan Roth conversions during early retirement or low-income years
- Integrate U-M retiree health benefits with Medicare Parts A, B, D
- Estimate healthcare and long-term care costs in retirement
- Align estate plans with U-M benefits and financial goals
- Provide guidance during Open Enrollment and career transitions
Ready to Make the Most of Your U-M Benefits?
Our Ann Arbor-based team has deep experience advising U-M employees. Let’s build a financial plan that reflects your career, your benefits, and your goals.
