Retirement Plan Overview — UM Health-Sparrow

401(k) Plan (Defined Contribution):

• Eligibility: Available to all newly hired team members, including Michigan Athletic Club and Michigan Athletic Club Restaurant team members, effective Jan. 1, 2026!
• Flyers for team member reference: 401k, 403b, and 457b Easy Access Flyer and 401k Internal Team Member Flyer
• 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 Transamerica 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 for each pay period (subject to annual IRS limits)
  Employer Match	50% match on first 6% of a team member’s bi-weekly contribution per pay period (maximum employer match is 3%)
  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).

   

 403(b) Plan (ERISA):

• Eligibility: Only for UM Health-Sparrow team members actively accruing a benefit under the Sparrow DB Pension Plan.
• Contributions: Pre-tax, biweekly (team member only, no employer match)
• Vesting: Immediate for all team member contributions
• Flyer for team member reference: 403b Vendor Contact Flyer

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

• Eligibility: Only for team members hired by participating entities prior to 2007
• Employer contributions: Based on prior year’s eligible earnings and hours
• Vesting: After 5 years of 1,000+ eligible vesting hours per year and 5 years of 1,800+ eligible benefit service hours
• Flyers for team member reference: Sparrow Pension Center Flyer and Sparrow Pension Center Website Participant Account Instructions

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 Transamerica plan type, each plan would need its own beneficiary designation.

Contacts and Resources: