All faculty and staff, regardless of benefit eligibility, are able to participate in University-sponsored Voluntary Retirement Plans (VRPs). VRP options include:
401(a) Plan
403(b) Plan
457(b) Plan
Each VRP option can provide tax advantages, an array of investment choices and responsive service and planning support. You can change the amount of your deferral at any time.
Plan Options
The University provides the following VRP options for both benefit-eligible and non-benefit eligible faculty and staff. You may be able to participate in one or more of these plans.
Plan | Who is Eligible? | When does eligibility begin? | 2026 IRS annual limits | Loan provision | Withdrawal provision | Employer match | Additional Catch-up contributions4 |
|---|---|---|---|---|---|---|---|
403(b) pretax1 | Benefit-eligible and non-benefit eligible employees | Employment commencement date | $24,500 | Yes | Allowed at age 59 陆 or severance from employment | No | Age 50-59: $8,000
|
Roth 403(b) after-tax1 | Benefit-eligible and non-benefit eligible employees | Employment commencement date | $24,500 | Yes | Allowed at age 59 陆 or severance from employment | No | Age 50-59: $8,000
|
403(b) pretax irrevocable1,3 | Benefit-eligible and non-benefit eligible employees | One-time irrevocable election on or prior to employment commencement date | $72,000 | Yes | Allowed at age 59 陆 or retirement | No | Does not apply |
457(b) pretax2 | Benefit eligible and non-benefit eligible employees | Employment commencement date | $24,500 | No | Allowed at age 59 陆 or severance from employment | Limited. Employees who have the Hybrid Plan or DC Plan as their core retirement plan can receive matched contributions. | Age 50-59: $8,000
|
Roth 457(b)2 | Benefit-eligible and non-benefit eligible employees | Employment commencement date | $24,500 | No | Allowed at age 59 陆 or severance from employment | Limited. Employees who have the Hybrid Plan or DC Plan as their core retirement plan can receive matched contributions. | Age 50-59: $8,000
|
401(a) pretax irrevocable3 | Benefit-eligible employees | One-time irrevocable election on or prior to employment commencement date | $72,000 | Yes | Allowed at age 59 陆 or severance from employment | No | Does not apply |
1 Your total contribution to 403(b) pretax and Roth 403(b) plans combined cannot exceed the IRS annual contribution limits. Please visit irs.gov and search COLA limits for more information.
2 Your total contribution to 457(b) pretax and Roth 457(b) plans combined cannot exceed the IRS annual contribution limits. Please visit irs.gov and search COLA limits for more information.
3 On or before employment commencement date, a one-time contribution election may be made that may not be changed unless you end employment with the university. Please contact the Office of Human Resources if you are interested in this option.
4 The 403(b) and 457(b) plans both offer the ability to contribute catch up contributions depending on age and plan provisions. The catch-up contribution amounts listed here are in addition to the individual plan limits set by the IRS as outlined in the individual plan rows listed in this table.
Supplemental Retirement Plan (SRP) and Irrevocable 403(b) Plans
The Supplemental Retirement Plan (SRP) and Irrevocable 403(b) Plans are tax-deferred savings options; you may choose to participate in one or both plans. Elections must be made no later than the date of initial eligibility under the plan or any other plan or arrangement of the Employer that is described in IRS Code Section 219 (g)(5)(A).
While the choice to participate in these plans is yours, once you make an election to participate in one or both plans, your election cannot be changed or stopped. The savings amount available at retirement depends on your contributions and the gains or losses generated by the investment(s) you select, less any expenses charged to your account.
SRP: This plan allows you to make a one-time irrevocable election, up to $70,000 annually
Irrevocable 403(b): This plan is a provision of the tax-deferred 403(b) savings plan and allows you to make a one-time irrevocable election up to $70,000 annually.
The employee limit is the same, no matter your age. In rare circumstances, there may be an opportunity for catch-up contributions, depending on your age and voluntary 403(b) contributions.
Enrollment
Eligible employees may register in VRPs (403(b) and 457(b)) beginning with your employment commencement date. You can , or via phone at 1-800-343-0860. To enroll on or before your employment commencement date, email hrservicecenter@umsystem.edu.
Contributions
The University鈥檚 VRPs include both pretax and after-tax options. This means you can choose to save on taxes now and pay them when the money is withdrawn at retirement or contribute after taxes now and withdraw money tax free 鈥 so long as the distribution is a qualified one. Your contributions are automatically deducted from your paycheck, making it easy to contribute.
403(b) and 457(b) pretax
Tax-deferred, pretax contributions can be made to the 403(b) and 457(b) Plans. Your contribution is a payroll deduction, and you don鈥檛 pay tax on your contributions or earnings until the money is withdrawn from your account.
403(b) and 457(b) Roth contributions
Roth contributions are available in the 403(b) and 457(b) Plans. If you choose the Roth option, you contribute after-tax dollars to the Plan and then withdraw tax-free dollars from your account when you retire, provided you meet certain requirements.
Any changes to your 403(b) or 457(b) elective deferrals are effective on the next available payroll period. Allow one to two payroll cycles for the changes to take effect.
401(a) ERIP
If you are part of the Hybrid Plan or the Defined Contribution (DC) Plan, the 401(a) ERIP is the plan where your employer deposits its contributions. There are employer contribution limits on these plans, based on annual compensation.
Hybrid Plan
In the Hybrid Plan, the maximum your employer may contribute is $18,000 annually.
The IRS has set the employer limit at an annual compensation of $360,000. Therefore, the amount shown is determined by the following formula:
($360,000 annual compensation * 2% mandatory contribution from employer) + ($360,000 annual compensation * 3% matching contribution from employer) = $18,000.
Defined Contribution (DC) Plan
In the Defined Contribution (DC) Plan, the maximum your employer may contribute is $28,800 annually.
The IRS has set the employer limit at an annual compensation of $360,000. Therefore, the amount shown is determined by the following formula:
($360,000 annual compensation * 8% matching contribution from employer) = $28,800.
Catch-up Contributions
If you have reached age 50 or will reach 50 during the calendar year and are making the maximum Plan or IRS contribution, you may make an additional 鈥渃atch-up鈥 contribution each pay period. Catch-up contribution limits will be subjected to cost-of-living adjustments (COLAs) in $500 increments. Visit irs.gov and search COLA limits for current details.
Employees ages 60鈥63 may contribute an increased catch-up amount above the standard age-50 limit, allowing for additional retirement savings in the years leading up to retirement. The limit amount is indexed for inflation under Section 414(v) of the Internal Revenue Code.
Effective January 1, 2026, your catch-up contributions shall be designated as Roth elective deferrals if your wages (as defined by Code Section 3121(a) of the Internal Revenue Code) for the preceding year exceed $145,000 (as adjusted for cost-of-living to the extent provided by Code Section 414(v) of the Internal Revenue Code).
Beneficiary Designation
If you have not already selected your beneficiary, or if you have experienced a life-changing event such as a marriage, divorce, birth of a child or a death in the family, consider your beneficiary designations. Log in to your to make changes or call 1-800-343-0860.
Investment Options
You may select from a variety of options that best suit your goals, time horizon and risk tolerance.
Descriptions of the plans鈥 investment options and their performance are available online at . Once you are logged in, select Plan & Learn > Get answers to your financial questions > Plan Information: Forms and plan information > Select the plan you would like to research.
If you do not select specific investment options, your contributions will be invested in a target date fund using a retirement date closest to the year you will turn age 65.
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