1. OPEN – C&HR 2-22 June 25-26, 2015 OPEN – C&HR – 2-22 UM Retirement, Disability and Death Benefit Plan Distribution Options Reduction Board of Curators June 25-26, 2015

2. OPEN – C&HR 2-23 June 25-26, 2015 Review and Findings  Routinely review benefit plan options  Recent review identified that the number of pension distribution options (36) was excessive  Benefits Process Review Recommendation  Eliminate seldom used distribution options  Goal: Reduce employee confusion and streamline administration  Proposed implementation date of January 1, 2016 a

3. OPEN – C&HR 2-24 June 25-26, 2015 Summary of Distribution Options OptionUseAction Annuities* Single Life 50% J & S 75% J & S 100% J & S 47% 13% 6% 18% Retain Guaranteed Payment Options 5 year 10 year 15 year < 5% > 21% Eliminate Retain COLA 2% 4% < 1% Retain Eliminate Lump Sum 1 to 30% 10% 20% 30% Eliminate Add *Remaining 15% retired prior to 1990