Regional Retirement Plan Overview —
U-M Health Regional Network

Regional 401(k) Plan (Defined Contribution):

• Eligibility: Effective 1/1/2027 available to all newly hired regional team members
• Flyers for team member reference: COMING SOON!
• Tax benefits: Pre-tax and Roth (post-tax) contributions allowed.
• Automatic enrollment: 6% auto-contributed after 60 days unless opted out or modified when a team member contacts Principal or logs into their online profile.
• Withdrawals: Allowed after age 59½ or upon employment termination. Team members must allow 60 days following separation from employment for our 401k vendor to be notified of their last day worked. This is necessary for final pay checks, contributions and data exchange. Hardship withdrawals are available if IRS criteria is met.
• Vesting: when a team member is vested, this means they own the funds in their retirement account and can cash them out or roll them over to another retirement account when they separate from service or meet the eligibility guidelines for a distribution event.
  • Immediate: For team member contributions & annual employer “Safe Harbor” contributions
  • After 3 years: Bi-weekly employer match (requires 1,000+ hours per year for 3 years)
• Contributions:
  

  Type	Details
  Team Member	Voluntary elective contributions of up to 90% of eligible pay for each pay period (subject to annual IRS limits); percentage elections only
  Employer Match	UM Health-Sparrow Team Members: 50% match on first 6% of a team member’s bi-weekly contribution per pay period (maximum employer match is 3%) UM Health-West Team Members (Plan Year 2027): 20% match on first 6% of team member’s bi-weekly contribution per pay period (maximum employer match is 1.2%) Note: If you contribute the maximum allowed per year prior to receiving the full allowed employer match, you will miss out on employer match dollars. Rockefeller is available to help you calculate an appropriate percentage contribution to spread throughout the year to ensure you don’t miss the match!
  Safe Harbor	3% automatic annual employer contribution (after 1 year of employment & 1,000+ eligible hours in the first anniversary year or a subsequent plan [calendar] year). New for UM Health-West team members for the 2027 plan year!

   

 403(b) Plan (ERISA):

• Eligibility: Only for UM Health-Sparrow team members actively accruing a benefit under the Sparrow DB Pension Plan.
  • Note: UM Health-West team members will have access to frozen benefits to manage investments, set beneficiaries, etc. but will not be able to make any new contributions effective 1/1/2027.
• Contributions: Pre-tax, biweekly (team member only, no employer match) only for certain UM Health-Sparrow team members
• Vesting: Immediate for all team member contributions
• Flyer for team member reference: COMING SOON!

Defined Benefit (DB) Pension Plan (closed to new hires and rehires):

• Applicable only to certain UM Health-West and UM Health-Sparrow team members hired prior to 2007
  • For more information, see West- or Sparrow-specific retirement pages
• Log into your Principal account to see vested benefits, run pension estimates, and apply for your pension benefits when ready!

Beneficiaries:

• Review and update anytime due to life changes (marriage, divorce, children)
• Update via retirement vendor website or by calling the vendor’s customer service number
• If you have more than one Principal plan type (ex. 401(k), 403(b), 457(b), Pension/DB plan), each plan would need its own beneficiary designation.

Contacts and Resources: