So, you've just been hired by a Michigan public school. Congratulations. I know starting a new job can be overwhelming. A new job means new coworkers, new responsibilities, and new routines. But keep in mind, those aren't the only things you need to think about. You also need to think about retirement. And that's because you have a limited amount of time to choose a retirement plan that's right for you. Here at the Michigan Office of Retirement Services, we partner with your employer, Voya Financial, and you to help you reach your retirement goals. As a new Michigan public school employee. You have two retirement plan options: the Defined Contribution Plan, or DC Plan, which is a savings plan. And the Pension Plus 2 Plan, which pairs a pension component with a savings component. Now, it's important to keep in mind that you have 75 calendar days from the last day of your first pay period to choose your retirement plan. If you don't make an election before the 75 days pass, you'll be placed in the Pension Plus 2 Plan. And here's another important thing to know: once you submit your retirement choice online in miAccount or the deadline passes, you can't change retirement plans during your career, even if you leave public school employment and return at a later date. Let's take a quick look at each plan. The DC Plan is strictly a tax-deferred savings plan. Retirement income is based on your contributions, your employer's contributions, and investment performance in the State of Michigan 401(k) and 457 Plans. Your employer will contribute 4% of your wages every pay period, regardless of how much you're contributing. In addition, for every dollar that you contribute, your employer will match your contribution up to 5% of your wages. This match is also known as free money from your employer. If you're keeping score, that's 5% from you and 9% from your employer for a grand total of 14% that's invested for your retirement. You always keep your contributions, and you'll keep all your employer's contributions after four years of full time employment. Why do you have to wait four years? Because your employer likes you and wants you to stick around. You have a range of investment options to invest your money in the 401(k) and 457 accounts. So it's important that you take an active role in your retirement planning. There's no guaranteed benefit and retirement income ends when your accounts are depleted. You decide how much and when to withdraw the money from your accounts, but you have to follow IRS rules. The DC Plan doesn't offer disability protection, so you may want to explore your employer's coverage for a long term disability insurance. The Pension Plus 2 Plan pairs a pension component with a savings component. The pension component guarantees you a monthly pension payment for life after you reach age and service requirements. That just means you're old enough and you've worked long enough to get a pension. So how do you have to be, and how long do you have to work to get a pension? Once you have worked for a Michigan public school for at least 10 years, you will be eligible for a pension benefit as early as age 60. If you leave employment before you have 10 years of service, you can get a refund of your pension contributions. You’ll contribute 6.2% of your wages for the pension component, and your employer will also contribute 6.2%. To get the maximum employer match your savings component, you need to contribute 4% of your wages and then your employer will contribute 3%. You always keep your contributions to your savings component and you'll keep all your employer's contributions after four years of full time employment. It's time for some more math. That's 10.2% from you and 10.2% from your employer, for a grand total of 19.4% that's invested for your retirement. Here's a quick side note. You can contribute even more to your 401(k) and 457, whether you choose the DC Plan or the Pension Plus 2 Plan. Retirement income from the savings component will depend on your contributions, your employer's contributions, and investment performance in the State of Michigan 401(k) and 457 Plans. Remember, you have a range of options for investing in your 401(k) and 457. So now that you know a little bit about your options, how do you decide which plan is right for you? To help answer this question, we've published the Choosing Your Retirement Plan guide. In the guide, you'll find information about the plans, a comparison of a plan features, and an activity to help you make your decision. Another helpful resources the PickMiPlan website. It has detailed information about both plans, frequently asked questions, and a link to submit your retirement plan choice online. If you want more videos, check out our YouTube channel, where we explain retiree health care benefits and common retirement terms. The plan that's best for you depends on your unique situation and retirement goals. You may want to speak with a tax or financial advisor for help with your decision. So once you know which plan you want, how do you make your choice official? About 10 to 15 days after your first paycheck, you'll receive a letter from ORS. This letter will have your member ID. You'll use your member ID you to log in to miAccount and submit your retirement plan choice online. You have 75 calendar days from the last day of your first pay period to choose your retirement plan, Or you'll be put in the Pension Plus 2 Plan. After you submit your choice in miAccount or the deadline passes, you can not change your retirement plan. You'll receive a letter from ORS confirming which retirement plan you're in. Keep this letter for future reference. But your retirement journey doesn't end there. Take steps to control your future by staying engaged in your retirement planning throughout your career. Your future you will thank you.