Retirement Plan Enhancements It’s all outlined in

Transcript:Retirement Plan Enhancements It’s all outlined in:
Retirement Plan Enhancements It’s all outlined in the Transition Guide Mailed to your home address, and posted on TIAA microsite: www.tiaa.org/kalamazoo 3 Today’s Agenda Why the Enhancements Retirement Oversight Committee Overview of Enhancements Transition Experience Managing your New TIAA Account Actions Steps and Resources Available 2 Why the Enhancements? Meet our regulatory and fiduciary responsibilities Simplify selection of investments Diversify investment managers Create a more transparent and equitable administrative fee structure Offer lower costs to employees Other higher educational institutions have made similar changes to their retirement plans. 4 Retirement Oversight Committee (ROC) ROC worked closely with SHA Retirement Group (unbiased, independent consultant). ROC used SHA’s analysis, measurement tools and recommendations to help determine a new fund menu and tier structure. ROC makes recommendations to the vice president of business and finance, the named fiduciary of Kalamazoo College’s retirement plans. Moving forward, ROC will monitor investments with support from an independent consultant. 5 Retirement Oversight Committee (ROC) Since its inception in 2017, the committee has recommended: Reducing fees and expenses through share class changes and fee negotiations, resulting in savings to Kalamazoo College employees Reviewing the investment menu and diversifying investment managers Modernizing the retirement plan, including more liquid annuity options Introducing a Stable Value Fund 6 What is not Changing? Key aspects of the Kalamazoo College Retirement Plans will stay the same: K College contribution percentages Number and type of retirement plans Defined Contribution Retirement Plan and Tax-Deferred Annuity Plan Eligibility requirements Distribution rules Immediate vesting 7 Single Administrative Service Provider Maintain the retirement accounts Process investments Provide account related information TIAA will be the single administrative service provider for the Retirement Program Makes it easy for you to: Access your account information View your investment options Manage your account in one place 8 Overview of the Enhancements Streamlined, best-in-class investment options Lowest net cost share classes 3-tier decision making structure Professionally Managed Account option Single recordkeeper, TIAA, for reporting and tools Single access point for all contracts Fee transparency 9 3-Tier Decision Making Structure Investors may choose to blend tiers *A new, streamlined menu of investment funds has been carefully selected to give you the opportunity to choose a mix of investments based on your financial goals and preferences. Investment options will be continuously reviewed on a periodic basis. 10 Target-Date Funds TIAA Funds Vintages 2010 – 2060 Qualified Default Investment Alternative It’s important to note that Target-date