FREE MONEY? ... ARE YOU MISSING OUT?
Double Your Money In The State’s Defined Contribution Plan
If you are in the State’s Defined Contribution plan, the State automatically
contributes an amount equal to 4 percent of your eligible salary into your
401(k) account. In addition, the State matches the first 3 percent contribution
you make into your 401(k). When you add it up, you can double your money simply
by contributing 3 percent, and you will have an amount equal to 10 percent
of your salary going toward your retirement – 7 percent contributed by
the State.
Don’t Delay. Sign up today and designate a percentage and spread your
contributions over the whole year, as contributions are matched each pay period.
Remember if you contribute at least 3 percent, the State will match your first
3 percent.
Is Your
Future In Default?
When you sign
up for the 401(k) or 457 plans, you get to choose among a wide variety of
investment funds to invest your contributions. If you don’t choose specific
investments, all contributions automatically default into the Yield Enhanced
Short-Term Fund. This fund is considered a conservative, low-return fund and
may not be appropriate for your funds from now until retirement. That’s
why it is important to tell CitiStreet how you want your money invested. Choose
funds that better fit your investment goals and tolerance for risk. You can
choose your investments by visiting the Plan website or by calling the Plan
Information line below.
Need More
Information?
For investment
and other 401(k) and 457 plan information, you can visit the plan website
at http://stateofmi.csplans.com
or call the Information Line at (800) 748-6128. The State of Michigan also
offers free classes at various locations. All state employees are welcome.
Check the Civil Service website at www.michigan.gov/mdcs
and then contact your local personnel office or training person to register
for the next scheduled class.
For more information about retiring from the 401K Plan, visit the Office of Retirement Services website at www.michigan.gov/orsstatedc. You can also ask your Human Resource office for "Looking to the Future", a handbook for 401K Plan members.
Note: This article prepared by the Office of Retirement Services, Department of Management and Budget.