Enhancements made to retirement savings plans
The benefits offered by Michigan Medicine and U-M are highly valued by employees and viewed positively relative to industry peers.
Recently, the Michigan Medicine leadership team endorsed a change to the retirement savings plan benefit for the health system and shared services employees to align them with the medical school and university.
Effective Jan. 1, 2020, university contributions to health system and shared services employee retirement savings plans will be capped at 10 percent (currently 9 percent) of base pay, when employees contribute 5 percent (currently 4.5 percent) of base pay. Retirement savings contributions for bargained-for employees are still determined by the terms of their respective collective bargaining agreements.
There are several reasons for the adjustment of the retirements savings cap, including past and recent financial performance and stability, a desire to remain competitive in the marketplace and attract the highest caliber employees, greater alignment with the university and medical school, and the understanding that a robust retirement savings plan is highly valued by employees.
This change also reflects the organization’s desire to foster a culture of fairness and alignment across all areas of academic institution. Similar to the parental leave benefit introduced in late 2018, the new Wellness Office announced last week and the annual compensation merit program, investing in employees and their wellness will return benefits for the overall institution.
In order to optimize system implementation, the retirement savings plan change will take effect at the beginning of the 2020 plan year, which follows the calendar year versus our fiscal year schedule. This timing will allow for more streamlined implementation with the university and Michigan Medicine human resources teams.
Check out Frequently Asked Questions about the changes by clicking here.
For additional information, please contact Michigan-Medicine-Compensation@med.umich.edu in Human Resources.