The Defined Contribution (DC) Plan is a matching-only plan, and is the core retirement plan for active, benefit-eligible employees hired or rehired on or after 10/01/2019. Additionally, active, benefit-eligible employees may have switched to the DC Plan during the 2026 DC Opt-In Program.
| Summary of the DC Plan | |
|---|---|
| UM match | 100% of up to 8% of eligible pay |
| Vesting | 3 years of service |
The DC Plan is made up of employee and employer contributions. The University provides a matching contribution to an employer contributions account equal to your contribution rate to a 457(b) plan, up to 8% of eligible salary.
Plan Design | Active or returning benefit-eligible employee hired or rehired on or after 10/01/2019 | Active, benefit eligible employee who switched to the DC Plan during the 2026 DC Opt-In Program |
|---|---|---|
Employee automatic deferral rate | 8% (can be changed by the employee at any time) | 6% (can be changed by the employee at any time) |
Employee mandatory deferral rate | N/A | 2% (cannot be reduced or changed) |
Vesting period | 3 years | Vested at plan switch |
Employer match | 100% match | 100% match |
Total employer contribution at max match | Up to 8% of pay | Up to 8% of pay |
Total employee + employer contribution at max match | 8% + 8% = 16% | 2% + 6% + 8% = 16% |
Suggested total savings rate | 15% | 15% |
Enrollment
To help ensure you receive the full University contribution, you are automatically enrolled in the Plan at a contribution rate designed to align with the maximum employer contribution available based on your plan eligibility. To receive the full University contribution, you must contribute at a rate sufficient to meet your plan’s matching requirements. You may change your contribution rate at any time.
Example: Basic hypothetical annual contribution illustration based on a salary of $50,000.
Contribution type | Percent of salary | Annual contribution |
|---|---|---|
Employee contributions to 457(b) | 8% | $4,000 |
UM matching contributions to employer contributions account | 8% | $4,000 |
TOTAL | 16% | $8,000 |
Changing Your Deferral
You may change your 457(b) elective deferral at any time by logging into your or by calling 1-800-343-0860. Any changes to your 457(b) elective deferral are effective in the next available payroll period. Allow one to two payroll cycles for changes to take effect.
Vesting
You are immediately 100% vested in your contributions to the 457(b) plan. The University’s matching contributions to the employer contributions account vest following three years of service. Please note that these years do not need to be consecutive.
The employer contributions to the employer contributions account, along with your contributions to the 457(b) plan and your investment earnings and/or losses, will equal the value of your benefit should you become vested. If you terminate employment with the University before vesting, you forfeit the University’s matching contributions made to the employer contributions account on your behalf.
Eligible Salary
Your 457(b) plan elective deferral is calculated using all compensation paid to you for services rendered to the University. It is important to note that the compensation definition for the University matching contributions is different.
The DC Plan matching contributions will not consider compensation exceeding the annual 401(a)(17) limit. This limit is adjusted by the IRS annually for cost-of-living.
Choosing your Investments
You select how to invest all contributions in the DC Plan. For information about your investment choices, please visit your and select the “Accounts and Benefits” tab, then “Manage investments” and select the plan to view (457(b) or 401(a) ERIP).
It is important that you access your account so you can make your investment selection. If you do not make a selection, your investments will be placed in a University-selected default investment. You may make changes to your investment selections at any time online through your account or by calling 1-800-343-0860. If you are unsure how to invest your contributions, Fidelity retirement representatives are available to meet one-on-one to assist you.
Beneficiary Designation
Naming a beneficiary ensures that your benefit is handled in the manner you intend. You should name a beneficiary when you first participate in the DC Plan. Whenever there are important changes in your life – such as marriage, divorce or the birth or adoption of a child – review your beneficiary designation and consider updating. You may update beneficiary information through .
Applying for Benefits
Visit or contact Fidelity at 1-800-343-0860 for more information on how to begin your benefits from the DC Plan.
Employee Resources
How you plan for retirement is personal. This information is intended to help answer commonly asked questions and is not meant to fully address all provisions of the plan. Additional resources are available:
Refer to the summary plan description (PDF) for more detailed information.
If applicable, review your current UM Retirement Plan
Consult the retirement planning checklist for next steps
Schedule a one-on-one consultation with a Fidelity Workplace Financial Consultant