Retirement Plan Enhancements It’s all outlined in
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Retirement Plan Enhancements Its all outlined in the Transition Guide Mailed to your home address, and posted on TIAA microsite: www.tiaa.orgkalamazoo 3 Todays Agenda Why the Enhancements Retirement Oversight Committee Overview of
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Retirement Plan Enhancements<br>
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It’s all outlined in the Transition Guide Mailed to your home address, and posted on TIAA microsite: www.tiaa.org/kalamazoo 3<br>
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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<br>
Retirement Oversight Committee
Overview of Enhancements
Transition Experience
Managing your New TIAA Account
Actions Steps and Resources Available 2<br>
04
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<br>
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<br>
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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<br>
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<br>
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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<br>
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<br>
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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<br>
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<br>
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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<br>
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<br>
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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<br>
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<br>
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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<br>
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Target-Date Funds TIAA Funds
Vintages 2010 – 2060
Qualified Default Investment Alternative It’s important to note that Target-date funds share the risks associated with types of securities held by each of the underlying funds in which they invest. In addition to the fees and expenses associated with the target-date funds, there is exposure to the fees and expenses associated with the underlying mutual funds.
As with all mutual funds, the principal value of a target-date fund isn’t guaranteed at any time, even at the target date. The target date represents an approximate date when investors may plan to begin withdrawing from the fund. 11<br>
Vintages 2010 – 2060
Qualified Default Investment Alternative It’s important to note that Target-date funds share the risks associated with types of securities held by each of the underlying funds in which they invest. In addition to the fees and expenses associated with the target-date funds, there is exposure to the fees and expenses associated with the underlying mutual funds.
As with all mutual funds, the principal value of a target-date fund isn’t guaranteed at any time, even at the target date. The target date represents an approximate date when investors may plan to begin withdrawing from the fund. 11<br>
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Asset Classes Offer Choice & Flexibility 12 GUARANTEED* FIXED INCOME MULTI-ASSET EQUITIES REAL ESTATE * Options offered in the guaranteed asset class are subject to the claims-paying ability of the issuing company.
Investing involves risk of loss of principal. Diversification is a technique to help reduce risk. It is not guaranteed to protect against loss. Lower Risk Higher Risk For your specific investments, visit TIAA.org/kalamazoo<br>
Investing involves risk of loss of principal. Diversification is a technique to help reduce risk. It is not guaranteed to protect against loss. Lower Risk Higher Risk For your specific investments, visit TIAA.org/kalamazoo<br>
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Core Investment Options 13<br>
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A fee-based advisory service
Provides a personalized investment plan to help you pursue your retirement goals
Professional management of your plan account so your account is reviewed quarterly and automatically adjusted to help keep it on track with your goals. Retirement Plan Portfolio Manager Service By opening a brokerage account, you will be charged a commission on all transactions and other account-related fees in accordance with the TIAA Commission and Fee Schedule. Visit TIAA.org/SDA_CAA and click on Learn about fees for a complete list of commissions and fees. Other fees and expenses apply to a continued investment in the funds and are described in the fund’s current prospectus. The Brokerage account option is available to participants who maintain both a legitimate U.S. residential address and a legitimate U.S. mailing address. Some securities may not be suitable for all investors. 14<br>
Provides a personalized investment plan to help you pursue your retirement goals
Professional management of your plan account so your account is reviewed quarterly and automatically adjusted to help keep it on track with your goals. Retirement Plan Portfolio Manager Service By opening a brokerage account, you will be charged a commission on all transactions and other account-related fees in accordance with the TIAA Commission and Fee Schedule. Visit TIAA.org/SDA_CAA and click on Learn about fees for a complete list of commissions and fees. Other fees and expenses apply to a continued investment in the funds and are described in the fund’s current prospectus. The Brokerage account option is available to participants who maintain both a legitimate U.S. residential address and a legitimate U.S. mailing address. Some securities may not be suitable for all investors. 14<br>
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Fee Transparency Old structure:
Fees were bundled and charges were not itemized.
New structure:
Fees itemized and clearly shown on your quarterly statement. Sample Quarterly Statement 15<br>
Fees were bundled and charges were not itemized.
New structure:
Fees itemized and clearly shown on your quarterly statement. Sample Quarterly Statement 15<br>
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TIAA Retirement Choice Platform (RC) Transition from individual contracts to group contract
TIAA Traditional Annuity
Improved liquidity
Potential for higher crediting rate
Guarantee Minimum Interest Rate: Floating rate between 1.0% and 3.0% for future deferrals 2.5% is the current new money rate As September 1, 2020 16<br>
TIAA Traditional Annuity
Improved liquidity
Potential for higher crediting rate
Guarantee Minimum Interest Rate: Floating rate between 1.0% and 3.0% for future deferrals 2.5% is the current new money rate As September 1, 2020 16<br>
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Transition Experience<br>
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What You Can Do–Next Steps Do Nothing Your future contributions and existing mutual fund balances will move to the new RC contracts with TIAA and into the TIAA target-date funds. After October 6, transfer your mutual fund and/or annuity balances via telephone into the new RC contracts with TIAA and the new investment options you selected. You can also select the investment allocation you would like to use for your future contributions. 18<br>
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If you currently have a TIAA account 19<br>
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If you currently have a TIAA account 20<br>
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If you currently have a TIAA account TIAA Traditional Annuity
Any balance will remain in your existing legacy TIAA account.
Under the new lineup, the TIAA Traditional minimum rate guarantee might be lower than the fixed minimum rate in your existing account.
If balances are transferred out of an existing legacy account, you risk giving up a favorable credit rate (and vintage treatment) on older contributions. Guarantees are subject to TIAA’s claims-paying ability. 21<br>
Any balance will remain in your existing legacy TIAA account.
Under the new lineup, the TIAA Traditional minimum rate guarantee might be lower than the fixed minimum rate in your existing account.
If balances are transferred out of an existing legacy account, you risk giving up a favorable credit rate (and vintage treatment) on older contributions. Guarantees are subject to TIAA’s claims-paying ability. 21<br>
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Managing your new account 22<br>
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My Account: Secure Account Access Log in /
First-time access Important information Plan and investment
information 1 2 3 23<br>
First-time access Important information Plan and investment
information 1 2 3 23<br>
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My Account: Secure Account Access Register for
secure access Review your investment
options My account
Change investments
Update your beneficiary 1 2 3 1 2 3 All materials depicted are samples. Sample<br>
secure access Review your investment
options My account
Change investments
Update your beneficiary 1 2 3 1 2 3 All materials depicted are samples. Sample<br>
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Retirement Plan Investment Advice TIAA and StraightLine, or any of their affiliates or subsidiaries are not affiliated with or in any way related to each other. TIAA acts as a recordkeeper for the plan and, in that capacity, is not a fiduciary to the plan. TIAA is not responsible for the advice and education provided by StraightLine. TIAA also provides advice and education to plan participants and when it provides advice, TIAA takes fiduciary responsibility for that advice. Straightline is not responsible for the advice and education provided by TIAA. Online with TIAA Retirement Advisor
Get quick, convenient answers based on your goals and risk tolerance
Visit TIAA.org/retirementadvisor and log in to your account Individual advice session Call TIAA at 800-732-8353, weekdays, 8 a.m.to 8 p.m. (ET) or visit TIAA.org/schedulenow. IMPORTANT: The projections or other information generated by the retirement advisor tool regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results and are not guarantees of future results. Results may vary with each use and over time. 25<br>
Get quick, convenient answers based on your goals and risk tolerance
Visit TIAA.org/retirementadvisor and log in to your account Individual advice session Call TIAA at 800-732-8353, weekdays, 8 a.m.to 8 p.m. (ET) or visit TIAA.org/schedulenow. IMPORTANT: The projections or other information generated by the retirement advisor tool regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results and are not guarantees of future results. Results may vary with each use and over time. 25<br>
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Consider These Next Steps 26<br>
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This material is for informational or educational purposes only and does not constitute a recommendation or investment advice in connection with a distribution, transfer or rollover, a purchase or sale of securities or other investment property, or the management of securities or other investments, including the development of an investment strategy or retention of an investment manager or advisor. This material does not take into account any specific objectives or circumstances of any particular investor, or suggest any specific course of action. Investment decisions should be made in consultation with an investor’s personal advisor based on the investor’s own objectives and circumstances.
Investment products may be subject to market and other risk factors. See the applicable product literature or visit TIAA.org/kalamazoo.
Distributions from 403(b) plans before age 59½, severance from employment, death, or disability may be prohibited, limited, and/or subject to substantial tax penalties. Different restrictions may apply to other types of plans.
Investment, insurance and annuity products are not FDIC insured, are not bank guaranteed, are not bank deposits, are not insured by any federal government agency, are not a condition to any banking service or activity, and may lose value.
You should consider the investment objectives, risks, charges and expenses carefully before investing. Go to TIAA.org/kalamazoo for current product and fund prospectuses that contain this and other information. Please read the prospectuses carefully before investing.
TIAA-CREF Individual & Institutional Services, LLC, Teachers Personal Investors Services, Inc., and Nuveen Securities, LLC, Members FINRA and SIPC, distribute securities products. Annuity contracts and certificates are issued by Teachers Insurance and Annuity Association of America (TIAA) and College Retirement Equities Fund (CREF), New York, NY. Each is solely responsible for its own financial condition and contractual obligations. TIAA Brokerage, a division of TIAA-CREF Individual & Institutional Services, LLC, Member FINRA/SIPC, distributes securities. Brokerage accounts are carried by Pershing, LLC, a subsidiary of The Bank of New York Mellon Corporation, Member FINRA, NYSE, SIPC.©2018 Teachers Insurance and Annuity Association of America-College Retirement Equities Fund, 730 Third Avenue, New York, NY 10017
458018 924204‐1097400 (04/18) 141022399 Disclaimers 27<br>
Investment products may be subject to market and other risk factors. See the applicable product literature or visit TIAA.org/kalamazoo.
Distributions from 403(b) plans before age 59½, severance from employment, death, or disability may be prohibited, limited, and/or subject to substantial tax penalties. Different restrictions may apply to other types of plans.
Investment, insurance and annuity products are not FDIC insured, are not bank guaranteed, are not bank deposits, are not insured by any federal government agency, are not a condition to any banking service or activity, and may lose value.
You should consider the investment objectives, risks, charges and expenses carefully before investing. Go to TIAA.org/kalamazoo for current product and fund prospectuses that contain this and other information. Please read the prospectuses carefully before investing.
TIAA-CREF Individual & Institutional Services, LLC, Teachers Personal Investors Services, Inc., and Nuveen Securities, LLC, Members FINRA and SIPC, distribute securities products. Annuity contracts and certificates are issued by Teachers Insurance and Annuity Association of America (TIAA) and College Retirement Equities Fund (CREF), New York, NY. Each is solely responsible for its own financial condition and contractual obligations. TIAA Brokerage, a division of TIAA-CREF Individual & Institutional Services, LLC, Member FINRA/SIPC, distributes securities. Brokerage accounts are carried by Pershing, LLC, a subsidiary of The Bank of New York Mellon Corporation, Member FINRA, NYSE, SIPC.©2018 Teachers Insurance and Annuity Association of America-College Retirement Equities Fund, 730 Third Avenue, New York, NY 10017
458018 924204‐1097400 (04/18) 141022399 Disclaimers 27<br>