Question:

Why should I save in a retirement plan such as a 401(k) or 457 plan?

Answer:

If you are like most people, your goal isn’t to work for your entire life. Reaching retirement with enough income to live on means planning ahead and saving throughout your career. Contributing to a tax-deferred savings vehicle such as the 401(k) or 457 plan provided by the state of Michigan provides a convenient, simple, tax-advantaged way to accumulate the money you will need to live a comfortable retirement. The sooner you get started, the better. Saving now will give you more options tomorrow.

Question:

Can I transfer money among the funds?

Answer:

Yes. You can move money between funds any time by calling the Plan Information Line at 1-800-748-6128 or through this website in the Investment & Research section. Transfers must be made in 1% increments, and you cannot transfer money from one fund to another and back to the original fund in the same day. Certain funds require a holding period of at least 90 days before transfers are allowed.

Question :
Do the Plans offer any investment advice services?

Answer :
Yes. The state of Michigan provides access to Voya Retirement Advisors, LLC (VRA). This service provides you with advice — professional, unbiased investment planning, personalized reports and support — to create a savings and investment strategy for you now based on your personal retirement goals. For more information, read the Voya Retirement Advisors Fact Sheet

Question :
When are transactions effective?

Answer :
Transactions completed before 4:00 PM Eastern Time are effective the same business day. Transactions completed at or after 4:00 PM Eastern Time are effective the next business day.

Question :
How do I change my bi-weekly deferral percentage?

Answer :
You may change your contribution percentage or dollar amount in 0.1% (one-tenth of one percent) or whole dollar increments at any time through the website using the Manage Contributions portion of the Contributions & Savings section or by calling the Plan Information Line at 800-748-6128. Note that contributions must be made in percentage increments in order to receive an employer matching contribution.

Any changes you make to your contribution amount will usually take effect within two pay periods, depending on when you make the change. Changes may be made at any time, and a confirmation statement will be mailed to your address of record.

In order to receive the employer matching contributions, Defined Contribution Plan participants must make deferral elections in the form of a percent (%) of their pay. A contribution submitted in a dollar ($) format will not be processed.

Question :
How do I name or change my beneficiary?

Answer :
When you were first hired by the state of Michigan, you should have completed a Beneficiary Designation Form. You should review this information on a regular basis to make sure that it still reflects your current wishes. If you need to change your beneficiary, you can log in to your account on this website and update it electronically under your Profile, download a new Beneficiary Designation Form in the Plan Details section of this website, or you can request it by calling the Plan Information Line at 800-748-6128.

Question :
I recently moved. How do I change my address?

Answer :
Active participants must change their address through their HR representative. If you’re a terminated or retired plan participant, you can download the Terminated Participant Address form located in the Plan Details section of this website or you can request it by calling the Plan Information Line at 800-748-6128.

Question:

How do I find out how much I owe on my loans?

Answer:

To obtain the payoff amount of your existing loan(s), you may go to the Loans & Withdrawals section of this website, or call the Plan Information Line at 800-748-6128 to speak to a Customer Service Associate.

Question:

How many loans can I have at the same time?

Answer:

All participants in the Plans are limited to one outstanding loan at a time. All outstanding loans including defaulted loans, need to be repaid in order to request another loan.

Question:

What happens if I default on a loan?

Answer:

The loan amount will be considered a taxable withdrawal. You’ll owe income taxes on the money, and if you're under age 59½, an additional 10% early withdrawal penalty will be assessed.

Question :
Can I withdraw money from my 401(k) Plan account while still employed by the state?

Answer :
Yes. A Hardship Withdrawal is available through the Plan. It can be taken from your 401(k) Plan account for one of the following reasons:

• Medical Expenses
• Tuition Expenses
• Purchase principal residence
• Eviction/foreclosure of Principal Residence

Financial Hardship Withdrawal forms can be completed online. You may access the prefilled form at the Loans & Withdrawals section, Request a Withdrawal.

Question:

Can I withdraw money from my 457 Plan account while still employed by the state?

Answer:

Yes. Financial Hardship Withdrawal forms can be completed online. You may access the prefilled form at the Loans & Withdrawals section, Request a Withdrawal.

Question :
How quickly can I get my money when I make a request for a loan, hardship or final distribution?

Answer :
Generally, loan checks are mailed first class within three business days after execution of distribution transaction.

For hardship withdrawals, Financial Hardship Withdrawal prefilled forms can be completed online. You may access the prefilled form at the Loans & Withdrawals section, Request a Withdrawal. After the signed form is received and approved by Voya Financial®, a check will be mailed within three business days.

Separated participants can receive distributions no earlier than 45 days from their termination date. Final distribution checks are mailed first class within three business days of receiving your signed forms.

Question :
How do I request a payout at the time I separate from state service?

Answer :
To request that a Payout Request Form be sent to your address of record, call the Plan Information Line at 800-748-6128 and speak with a Customer Service Associate.

You are encouraged to speak with your tax advisor or financial planner before deciding how to take your distribution.

Question :
What is the current fee structure for the State of Michigan 401(k) and 457 Plans?

Answer :
The fees you are charged are comprised of a separate Investment fee and Plan Administration fee.

Investment Fee
The investment fee is assessed by the manager of each investment option offered by the plans. For example, State Street, as the fund manager, charges an investment fee for managing the Target Date Retirement Funds.

The annual fees each participant is charged for each investment offering are based on the amount of assets in each investment because fees are calculated as a percentage of your balance. For example, a particular fund manager charges an investment fee of 0.07% and you invested $70,000 in that fund, the investment fee you would pay is $49.

Plan Administration Fee
The plan administration fee is charged by Voya Financial® for the recordkeeping services they provide and for the administrative expenses of the state. It is a flat fee of $9.25 charged quarterly to your account, rather than an additional amount added as a percentage to the investment fee. If you have balances in the 401(k) and 457 Plans, your $9.25 fee will be prorated across all of your accounts, even if you have separate balances from state and public school employment.

The example below shows the savings realized on an average account size of $70,000 invested in a Target Date Fund. This example is for illustrative purposes. Your actual fees may be more or less.

Tier I Fund	Value of Account	Investment Fee	Investment Fee Amount	Administration Fee	Total Annual Fees
Target Date Retirement Fund	$70,000	0.0007	$49	$37 ($9.25 quarterly)	$86

Question :
What are dividends and capital gains?

Answer :
A dividend is a sum of money an investment fund or company pays to its shareholders, typically from its profits. The amount is usually expressed on a per-share basis.

A capital gain is an increase in the value of an investment, calculated by the difference between the net purchase price and the net sale price. When investment companies buy and sell shares of stock within a pooled investment (e.g., mutual fund, common trust fund, etc.), a gain or loss is experienced based on the difference between the purchase and sale price.

Dividends and capital gains are added to the overall value of the investment and are reflected as an increase in the investment’s daily unitized price. You will not see an explicit dividend or capital gain activity on your account statement.

Question :
I’m not seeing dividends and capital gains from my fund posted to my account. How are those being applied to my retirement investment account?

Answer :
Several investment funds use a unitized accounting method. Unitized accounting allows the fund management and performance to remain the same, but charge lower than normal fees for participation in that fund. Dividends and capital gains are added to the overall value of the investment and are reflected as an increase in the investment’s daily unitized price. You will not see an explicit dividend or capital gain entry on your account statement.

Currently, the funds that use the unitized accounting method are:

• Artisan U.S. Mid-Cap Growth Strategy Fund
• BlackRock Emerging Markets Index
• BlackRock Government Short-Term Investment Fund
• BlackRock SmallCap 600 Equity Index
• Jennison Large Cap Growth Equity
• Stable Value Fund
• State Street Bond Market Index
• State Street Global All Cap Equity ex-US Index
• State Street S&P 500 Index
• State Street S&P Midcap Index
• T. Rowe Price Mid-Cap Value Fund
• Virtus Ceredex Small-Cap Value Equity I

Question :
What is a reverse unit stock split?

Answer :
A reverse unit split is a proportionate decrease in the number of units a participant owns but not in the total value of the participant’s account holdings. Account values will not be affected and participants maintain the same percentage of equity as before the split.

Example:
At the close of business on a specific date, a Participant has $3,500 invested in a fund and owns 100 units. Each unit is worth $35.

After the stock market closes the next day, that same Participant will have only 10 units but will still have $3,500 invested in the fund. Each unit will be worth $350.

Question:
Am I considered a Public Safety Officer?

Answer:
A Public Safety Officer (PSO) who separates from employment and takes a distribution from their 401(k) account at age 50 or older may be exempt from the Internal Revenue Service (IRS) 10% early withdrawal penalty. To see if you qualify as a PSO, please visit https://www.irs.gov/irb/2007-05_IRB, Section 828 of PPA ’06, wherein it states, “For purposes of § 72(t)(10), the term “qualified public safety employee” means an employee of a State or of a political subdivision of a State (such as a county or city) whose principal duties include services requiring specialized training in the area of police protection, firefighting services, or emergency medical services for any area within the jurisdiction of the State or the political subdivision of the State.”

Neither the state of Michigan nor Voya Financial® determine whether you qualify as a PSO, so the 1099-R you receive after a plan distribution will not reflect PSO status. If you believe you qualify, you should seek assistance from your tax advisor.

Question :
How do I set up an online loan repayment arrangement now that I have separated from service?

Answer :
There are 3 needed steps to set up an ACH Debit Repayment arrangement from your bank account for your loan following separation from the state:

1. Contact the Plan Information Line at 800-748-6128 to request a loan reamortization to a monthly frequency.
2. Add Banking Information to your Online Account:
a. Log-in to stateofmi.voya.com > click on the applicable account > Profile > Banking Information > Add/Edit Banking Info > Complete online form
3. Set up Automated Payments:
Log-in to stateofmi.voya.com > click on the applicable plan > Loans & Withdrawal section > Loan Payment > Under the applicable loan, click the Automate Recurring Direct Debit Payments Check box > Read, review, and agree to the Terms and Conditions > follow the screen prompts to complete set up.