Update Retirement Plan Changes Overview Optional

Transcript:Update Retirement Plan Changes Overview Optional:
Update Retirement Plan Changes Overview Optional Retirement Plan Opt-Out Changes to 403(b) Tax Deferred Savings and Cash Match Plans 2 Overview Retirement Plan Options at W&M 3 No changes to Defined Benefit Plans or VRS Hybrid Plan Decision Making Investment Committee: Committee has been advised by CapTrust, a financial consulting advisory firm 4 Plan Improvements Decision-making; W&M will manage ORP Consistent plan design and administration of ORP and W&M retirement plans Broader investment choices for ORP Better oversight of 403(b) and Cash Match plans Same investment choices in all plans Lower participant fees Lower administrative fees for the University New online retirement web platform for ORP and 403(b) and Cash Match plans 5 Timeline for all Plans 1/3/2018 - New investment options available to TIAA customers; Fidelity lineup mostly unchanged 1/9/2018 to 1/15/2018 - Quiet Period 2/1/2018 - Retirement@Work web portal launches 2/1/2018 – Employees hired prior to 1/1/2018 may choose from both TIAA and Fidelity platforms Employees hired after 1/1/2018 may only choose from TIAA platform, but they may invest in Fidelity funds through self-directed brokerage option 6 OPTIONAL RETIREMENT PLAN 7 Background - ORP Changes GMU, Virginia Tech, University of Virginia and VCU previously opted out of the VRS optional retirement plan VRS advised the higher education community of planned changes to the ORP in late 2015 Strong faculty opposition to VRS decision VRS reversed course, but W&M elected to continue to pursue opt-out status 8 Status Opt-out authorized by Board of Visitors at April 2016 meeting Filed opt-out application and received approval from VRS in June 2017 Retained CapTrust to serve as plan fiduciary for ORP, 403(b), and Cash Match Plans Filed plan determination letter with IRS Retained TIAA-CREF as lead record keeper Selected new investment line-up for ORP, 403(b), and Cash Match plans effective 1/1/2018 Communications to employees advising of upcoming changes 9 Changes to ORP Investment choices Fidelity lineup unchanged, except for change to stable value fund TIAA selected as lead record keeper Maintained TIAA annuities, TIAA Traditional, TIAA Real Estate and CREF Stock 6 funds replaced with better performing funds TIAA target date funds added Added CREF Social Choice and TIAA Growth & Income Four Vanguard index funds added for those seeking low cost investing 10 actively managed funds added Self directed brokerage option 10 11 12 Impact to ORP Accounts TIAA will issue new contracts Investments don’t change, unless you are contributing to