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Changes to the Retirement Plan

As you are probably now aware, changes have been approved to the retirement plan offered by NSHE. This change impacts the mandatory plan for academic and administrative faculty (except those already on PERS) and the voluntary retirement plan (403B).

What is Changing

  • The Administration of the plan will be handled by TIAA-CREF as the record keeper. As record keeper, TIAA-CREF will be providing the following services:
  • Processing of contributions, loans, and distributions for the mandatory retirement plan and the voluntary retirement plan (403B)
  • Generating quarterly statements (for the new lineup only)
  • Providing financial guidance and advice services
  • On-line Account access
  • There will no longer be 3 vendors administering the retirement plan.
  • The investment lineup is all new. The only fund that will be available in the core lineup that is currently available is the TIAA-Traditional.
  • Part of the investment lineup is access to a Mutual Fund Brokerage Window which would give you access to all mutual funds in the market. These mutual funds will primarily be “retail” focused and will include funds with various expense ratios, transaction fees and sales loads.
  • The administrative fees that TIAA-CREF charges will go down from the current .11% to .065% for all assets (including legacy assets).

What Stays the Same

  • The plan still provides for immediate vesting
  • The contribution rate remains the same at 13.25% with a 13.25% employer match on the mandatory retirement plan.
  • If you are on PERS, these changes will not impact your PERS.
  • All existing assets that you have will stay where they are unless you take action to move them.
  • If you are participating in the 457 Deferred Compensation Program offered by the State through this change does not impact that plan, you will still be able to use ING and MassMutual for that plan.
  • You will continue to receive quarterly statements from Fidelity and VALIC (if you have accounts with them).

Action Needed

  • You will need to make a new investment selection for your contributions starting 1/1/2014.
  • If you do not make an investment selection, your contributions starting 1/1/2014 will go into the default fund which is an age appropriate Target Date Retirement Fund with Vanguard.
  • Information Sessions
  • Fund Performance Information

We have received questions from employees on how this change impacts their retirement accounts and have put together the following FAQs to address these questions.

These changes are a different approach in the management of the retirement plan compared to how it is managed now. Currently, we have three vendors who not only administer that plan, but also offer their own investment lineup. With this change, the administration of the plan is now separate from the investment lineup.

The new investment lineup for the plan has also been finalized. This investment lineup is different from the existing lineup in that there is only one proprietary fund from TIAA-CREF on the lineup. These will be your investment choices within the plan for your contributions beginning January 1, 2014.

TIAA-CREF is the new record keeper for the plan. This means they will handle all the administrative functions associated with the plan including - payroll interface, processing of loans and distributions, generating quarterly statements, on-line account access, financial consulting services. Representatives from TIAA-CREF will be on campus on the following dates for transition meetings. Locations are being finalized and will be announced within the next couple of weeks.

  • November 12 and 13
  • December 2, 3, 11, and 12

For those of you unable to attend these meetings, TIAA-CREF will also be hosting webinars in November and December. Dates and instructions for attending the webinar will be sent out in the next couple of weeks.