Retirement Transition FAQ's | Colorado Mesa University

We currently have four vendor options (TIAA, Fidelity, Valic & MetLife) with almost 200 investment options. Best practices suggest that simplicity is the key to investing. A recent higher ed retirement trend survey of 250 higher ed institutions, indicated that 27% offer than 10 investment options, 31% offer 11 to 15 options and just 12% of the plans offer between 16 and 20 options. The report notes that between 16 and 20 is "generally considered to be the ideal number for accommodating - but not overwhelming - participants with choice."

Given this, CMU clearly needs to simplify investment options. In this process, we believe we will be able to reduce fees paid by employees, provide better investment advising to employees and simultaneously provide better performance monitoring and fiduciary oversight.

CMU is working with legal counsel and an investment advisor to work with a new CMU committee over the summer and into the fall/winter of 2018. The committee, which will include faculty and staff representation, will make recommendations to the campus and board of Trustees. In the fall/winter of 2018 we will hold campus forums to discuss this more, both before and after the Board of Trustees make the final selections in about October.

We currently anticipate the full transition to be completed sometime early in CY2019, however that is subject to change as we move through the process.

This will NOT impact employees in the PERA defined benefit plan or in the PERA 401(k) or 457 plans.

Since most of the Fidelity contracts are group/institutional contracts, those contracts will auto roll to the new plan and new investments. However, any individual contracts can only be moved by the participant. If you choose not to move those individual contracts, if any, they will remain in the Fidelity investment. The mix will likely vary for each employee depending on the type of investments you currently have.

There will be an open window later this calendar year or early next calendar year when employees will have the ability to select where they want their funds to move to within the new fund line-up (see page 8). If the employee does nothing during this window, we will auto map/roll the group contracts to the new fund lineup, probably moving like-to-like investment classes. Certainly, thereafter the employee reserved the right to move their funds within the new line-up at any time. And, we will be offering a brokerage window option which will allow participants to get to just about any investment they want.

We will recommend that each individual employee avail themselves to one-on-one counseling with a retirement specialist (Insight Financial and/or TIAA) either now or later, or both, to better understand your personal situation. It is a great time to revisit your retirement planning to be sure it will help you achieve your retirement goals.

Yes, if you have a VALIC or Fidelity 401(a) or 403(b) plan you will be impacted by the change. All new contributions after full implementation will be made to the new investment line-up noted in the September 4th email and managed through TIAA. You may or may not be required to move your existing plan assets. It depends on the nature of the contract. Those that held in institutional or group contracts will be required to move to the new line-up. Those held in individual contracts can only be moved at the choosing of the plan participant.

During October, November & December you will have the opportunity to meet with advisors who will help you sort through the particulars and provide you information to aide in your decision making. I think you will be pleasantly surprised with the new line-up performance and cost. For example, currently VALIC participants pay 55 bps for recordkeeping services, whereas under the new plan you will pay 13.5 bps to TIAA.

Hopefully, you will be able to attend one of the open forums campus. At the end there will be a time for more Q&A. In the event you are more comfortable discussing individually you should feel free to reach out to Kevin Price, Insight Financial Solutions - Tel:970-986-4503 x 2, kevin.price@lpl.com.

It is important to keep in mind that even with these changes, the defined contribution benefit plan will remain portable as employees are 100% vested upon employment at CMU. That means, should an employee leave CMU, the CMU funds can be transferred to a new employer's plan or to the individual employee, subject to provisions of those plans.

We encourage you to come to one of the open forums. While this does not impact PERA, it will impact your TIAA 403(b) account. We will provide more information at those forums.

Since we are still in process there are no definitive answers yet. In part, it will depend on the type of contracts and/or investments you have with VALIC. Those that are held in individual contracts can only be moved at your option, which you may decide to do, or not do, once you see the new plan line-up. There will be a period of time during the transition, where employees will have an opportunity to select and move group contract funds to the new line-up; however, should they choose not to make their own selection CMU will move those funds to a pre-determined mapping account(s) in the new plan. The participant will have the opportunity to make changes anytime thereafter once the new plan goes live.

You as a participant will not need to notify VALIC, that will all be handled by CMU and our investment partners. You will be kept apprised of the options and actions, if any, you need to take through email and campus meetings.

Yes, ETF's will be available through the brokerage window, regardless of whether we go with TIAA or Fidelity as the recordkeeper. However, they will not likely be available in the core line-up.

Yes, the 403(b) plan will be administered under the same recordkeeper and core investment line-up as the 401(a) - employer and employee contribution plan. Employees will still have access to the State of Colorado PERA 457 and PERA 401(k) plans as they have in the past.

Employees will be able to re-allocate TIAA funds as of March 29, 2019, when the blackout period is over.

The transition experience will be slightly different for each participant based on your current/previous vendor, your investment types and contract types. Please see the handout for Fidelity, TIAA, VALIC & MetLife.

Depending on your 403b recordkeeper, you will need to initiate the transfer of those funds to TIAA. You may work with TIAA or Insight Financial Solutions to help you complete the required paperwork.

TIAA: 800-842-2252

Insight Financial Solutions: 970-986-4503

Yes, employees may continue to request loans from their 403b accounts only. Current rates & information may be found at www.tiaa.org.

No, this will be automatic based on you year of birth.

During the transition your named beneficiaries with Fidelity will remain. Once the transition is complete you beneficiary will default to surviving spouse, if none, children per stirpes; if none, estate. It is VERY IMPORTANT that you update your beneficiaries at tiaa.org as soon as possible to confirm it is as you want as the default setting may not be your preference. You can also update via phone at 800-842-2252. This can be completed starting March 15, 2019.

Insight Financial Solutions personnel are available for questions and will be providing individual employee advice beginning in the fall.

Kevin Price, Insight Financial Solutions

2793 Skyline Court, Suite D, Grand Junction, CO 81506

Tel: 970-986-4503 x 2

kevin.price@lpl.com - www.ifsgj.com/