New opportunities for your retirement strategy - Announcing enhancements to the Macalester College Faculty and Staff Retirement Plan
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New opportunities for your
retirement strategy
Announcing enhancements
to the Macalester College
Faculty and Staff Retirement Plan
1
Overview of topics we’ll be covering today
What is staying the same
Plan enhancements
Why changes are being made
Understanding and using your new investment options
What’s happening to future contributions and existing balances
Next steps and key dates
2
It’s all outlined in the Transition Guide
Mailed to your home
address and posted on
TIAA.org/macalester
3
What’s staying the same
The basic design of the retirement plan will remain unchanged
Eligibility requirements for participation
Employer contribution at 10%
Retirement Plan Committee
4
Plan enhancements
TIAA will become the sole recordkeeper for the retirement plan
New investment options from well-known investment companies
such as Vanguard, Prudential, T. Rowe Price, TIAA
TIAA Brokerage
Expanded retirement plan advice options
5
Why changes are being made
Benefits to the plan enhancements include:
Simplified user experience.
Greater efficiencies to effectively manage and reduce costs.
Access to reduced cost portfolio management services.
Enhanced administrative structure.
Streamlined ability to meet regulatory requirements.
6
Understanding and using your new investment options
Key dates
Date Event
November 27, 2018 New investment options at TIAA go into effect.
Participants new to TIAA from Vanguard, will be
November 28, 2018 automatically enrolled in a new account and receive a
confirmation kit.
Starting December 2018 All contributions currently going to Vanguard will be
redirected to your new TIAA account.
All TIAA mutual fund balances for current TIAA participants
December 7, 2018 in the legacy contracts are transferred to new Retirement
Choice (RC) contracts.
December 24, 2018,
Blackout period expected to begin for Vanguard balances.
at 11 a.m. (CT)
On or about this date, balances transfer from Vanguard to
January 3, 2019 TIAA. TIAA becomes the single administrative provider for
the retirement plan.
Blackout period expected to end. You can now access and
January 10, 2019
update balances transferred from Vanguard.
Please note: The date of the plan enhancements and the end of the blackout period depend on the accurate, timely transfer
of data from Vanguard to TIAA. If this does not occur, the end of the blackout period could be delayed.
8
How to use your investment menu
Option Option
1 2
Select a diversified,
Build your
professionally
managed portfolio. own portfolio.
Choose a Create an investment
BlackRock LifePath target strategy, based
date fund if you want a upon your goals or
simple yet diversified preferences.
approach
to investing.*
* Diversification is a technique to help reduce risk. It is not guaranteed to protect against loss.
9Option 1: Select a BlackRock LifePath target date fund
A BlackRock LifePath target date fund
Each fund is invested in a broad range of
investments, such as stocks, real estate
and bonds.
As the target date approaches, the mix of
assets is adjusted to become more
conservative.
Example: 2030 Fund
The target date approximates when g Fixed Income Funds
investors may plan (but are not required)
g Equities and Real Estate Securities Funds
to start making withdrawals.
A BlackRock LifePath Index fund is a “Fund of funds,” primarily invested in shares of other mutual funds.* The fund’s investments are
adjusted from more aggressive to more conservative over time as the target retirement date approaches. The principal value of a
BlackRock LifePath Index Fund isn’t guaranteed at any time and will fluctuate with market changes. The target date represents an
approximate date when investors may plan to begin withdrawing from the fund. However, you are not required to withdraw the funds
at that target date. Also, please note that the BlackRock LifePath Index Fund is selected for you based on your projected retirement
date (assuming a retirement age of 65).
The charts are only visual representations of the target date, fixed income and equity percentages. Please refer to the prospectus for
the funds for more details on asset allocation for each of the target-date funds.
10Option 2: Build your own portfolio
The Macalester College new investment
GUARANTEED*
More Conservative
options include a broad range of asset
classes so you can choose which ones
suit your needs.
MONEY MARKET
FIXED INCOME
More Aggressive
REAL ESTATE
For your specific investment options,
EQUITIES
go to: TIAA.org/macalester.
* 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.
11TIAA Brokerage
Features
You can choose your own investments
Access thousands of mutual funds
Buy, sell or transfer funds online or by phone
Reminders
Minimum $1,000 investment
Trading fees will be waived through February 28, 2019.
Macalester College will not monitor the performance of
brokerage services investment options.
TIAA does not offer investment advice for brokerage
investment options.
Some securities may not be suitable for all investors.
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 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.
12What’s happening to future contributions and existing balances?
What’s happening to my future contributions?
TIAA plan participants
On November 27, 2018, your future contributions will be directed to the new
investment options.
If you are currently in a Retirement Choice (RC) contract (contributions made
after April 1, 2016), your balances will also transfer to the new investment
options.
If you are in a legacy contract at TIAA (contributions made before April 1, 2016),
your mutual fund balances will be transferred to your RC contract on December
7, 2018.
If you do not have a RC contract and are already a TIAA participant, you will be
enrolled prior to the transfer and receive an enrollment confirmation.
- Your current beneficiary designation(s) will be applied to your new
account.
- Any annuity account balances will remain in your existing legacy accounts;
however, no new contributions, rollovers or transfers can be made into
these accounts.
14Important changes to TIAA Traditional Annuity
withdrawals or transfers
Current Retirement New Retirement Choice
Annuity contract Annuity contract
No lump-sum withdrawal option Lump-sum withdrawal is available within
Withdraw or transfer funds in 10 120 days of termination (2.5%
annual installments surrender fee)
Withdraw or transfer funds in monthly
payments over 84 months (seven years)
Remember, regardless of contract, TIAA Traditional always gives you the ability to
receive income for life in retirement.1
1. All guarantees are subject to Teachers Insurance and Annuity Association of America's claims-paying ability.
15Important changes to TIAA Traditional Annuity
In the new RC contract, the TIAA Traditional guaranteed rate is between 1% and 3%
(determined annually).1
This adjustable rate in the new contracts allows TIAA to be more responsive to the
prevailing interest rate environment, and may potentially pay you additional amounts.2
However, the new guaranteed rate may be lower than the rate in the current contract.
Moving money from your current contract to the new contract is permanent—money
cannot be moved back.
All money will remain in the old TIAA Traditional annuities.
1. Guarantees are subject to Teachers Insurance and Annuity Association of America's claims-paying ability.
2. TIAA’s Board of Trustees declares whether additional amounts will be paid in March of each year. Such additional amounts, when
declared, remain in effect for the “declaration year” which begins each March 1 for accumulating annuities and January 1 for payout
annuities. Additional amounts are not guaranteed for periods other than the period for which they were declared.
16What’s happening to my future contributions?
Vanguard plan participants
You will be enrolled in a new TIAA account on November 28, 2018, and sent an
enrollment confirmation. Your beneficiary designation will default to “Estate.”
Starting in December 2018, all future contributions will be directed to your new
TIAA account and the new investment options.
On or about January 3, 2019, your current account balance(s) with Vanguard
are scheduled to be transferred to your new TIAA account. Your contributions
and balance(s) will be transferred as shown in the Transition Guide.
- Expected blackout period: December 24, 2018, 11 a.m. (CT) to
January 10, 2019
You can change the way future contributions are directed starting on
November 28, 2018. You can make changes to your account balances with
TIAA once the blackout period has ended on January 10, 2019.
17Next steps and key dates
Next steps you can take
Review the Transition Guide.
Select your new investments and update beneficiaries.
Manage the day-to-day at TIAA.org/macalester.
Use the advice tools at TIAA.org/tools.
Get personalized retirement plan advice.
19Next steps you can take
Log in to your account and review Actions.
1. Review investment options.
2. Manage your portfolio.
3. Update your beneficiary information.
20Next steps you can take
Get personalized retirement plan advice from a TIAA financial consultant
This service is currently available at no additional cost
Sessions available in person or by phone
Based on your time horizon, investment goals and risk tolerance
This transition may be a good time to take a fresh look at your account
TIAA.org/schedulenow Call TIAA at 800-732-8353
weekdays, 8 a.m to 8 p.m (ET)
21Next steps you can take
New optional Retirement Plan Portfolio Manager service
Convenient service provides investment advice based on your goals and
needs, and a systematic, disciplined approach to managing your money.
Your portfolio is reviewed on a quarterly basis—and adjusted as needed—
to help keep it on track with your plan.
Benefits include How much does it cost?
Customized advice Annual fee of 0.30% deducted
Ongoing monitoring and portfolio quarterly from your account.
adjustments Calculating the Annual Fee (Example)
Modify direction as needed $10,000 x .003 = $30
Quarterly statements Average daily balance 0.30% Total Fee
22Key dates
Date Event
November 27, 2018 New investment options at TIAA go into effect.
Participants new to TIAA from Vanguard, will be
November 28, 2018 automatically enrolled in a new account and receive a
confirmation kit.
Starting December 2018 All contributions currently going to Vanguard will be
redirected to your new TIAA account.
All TIAA mutual fund balances for current TIAA participants
December 7, 2018 in the legacy contracts are transferred to new Retirement
Choice (RC) contracts.
December 24, 2018,
Blackout period expected to begin for Vanguard balances.
at 11 a.m. (CT)
On or about this date, balances transfer from Vanguard to
January 3, 2019 TIAA. TIAA becomes the single administrative provider for
the retirement plan.
Blackout period expected to end. You can now access and
January 10, 2019
update balances transferred from Vanguard.
Please note: The date of the plan enhancements and the end of the blackout period depend on the accurate, timely transfer
of data from Vanguard to TIAA. If this does not occur, the end of the blackout period could be delayed.
23Q&A
This material is for informational or educational purposes only and does not constitute investment advice under ERISA. 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 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/macalester.
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/macalester 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 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
MT 464406
642165
141027630
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