University of Rochester
FAQ: Retirement plan changes
Do I have to switch to TIAA-CREF?
Yes. All participants need to switch to TIAA-CREF, the new plan recordkeeper. However, you can select your investments from a wide variety of financial companies.
Will this change alter the amount of contributions going into my account?
No. Your voluntary allocation will remain the same unless you elect to change it. The University contribution formula also will remain the same.
Are there fewer investment options in the new plans?
There are fewer options under one-step investing and mix-your-own strategies and more options available under Self-Directed Brokerage Accounts.
Do the plan changes affect me if I’m retired or terminated with a balance in the plans?
Yes. In addition, if you are receiving recurring payments through Fidelity, T. Rowe Price, or Vanguard, you must complete the necessary paperwork with TIAA-CREF to re-initiate receiving your payments. You will receive a separate mailing about how to set up your payments. For additional information, call (800) 410-6497, Monday through Friday, 8 a.m. to 6 p.m. (extended hours to 8 p.m. through June).
Are loans still available under the plans?
Yes. Loans will still be available from the 403(b) Retirement Program. Individuals with current loans will not see any changes. The 457(b) Deferred Compensation Plan does not offer loans. For additional information, call (800) 410-6497, Monday through Friday, 8 a.m. to 6 p.m. (extended hours to 8 p.m. through June).
I am contributing to Fidelity, T. Rowe Price, or Vanguard. What happens to my existing balances and future contributions?
TIAA-CREF will become the retirement plans’ sole recordkeeper on June 15. Your existing balances and future contributions will be redirected to the new investment options, based on your investment allocation instructions. Or, if no instructions are made, your existing balances and future contributions will be defaulted to the age-appropriate Vanguard Target Retirement Fund based on your date of birth. If you wish to keep your current investment funds, you may do so with a Self-Directed Brokerage Account for most investment options.
I am contributing to TIAA-CREF. What happens to my existing balances and future contributions?
The TIAA-CREF mutual funds on the current investment menu will be closed, and several annuity accounts will be restricted to future contributions during the transition. On June 15, your existing balances in and future contributions to the closing mutual funds will be redirected to the new investment options, based on your investment allocation instructions. If no instructions are made, your existing balances and future contributions will be defaulted to the age-appropriate Vanguard Target Retirement Fund based on the date of your birth. Also on June 15, your future contributions to the restricted annuity accounts will be redirected to the new investment options, based on your instructions. If no instructions are made, your future contributions will be defaulted to the age-appropriate Vanguard Target Retirement Fund. Your existing balances in the restricted annuity accounts will remain in these accounts.
Can I invest in Fidelity, T. Rowe Price, TIAA-CREF, or Vanguard mutual funds?
Yes. To do so, you will need to open a Self-Directed Brokerage Account (SDBA). Through the SDBA option, you can invest in most of the funds from these providers or from thousands of other funds from some of the nation’s leading fund families. By opening your account between April 1 and April 30, TIAA-CREF will take this as your instruction to perform an in-kind mutual fund unit transfer of funds. A full list of funds available for one-time, in-kind transfer is available at www.tiaa-cref.org/Rochester.
Do I need to open a new account if I have a TIAA-CREF account?
No. You can invest in the new investment options without setting up a new account. You can also transfer your current investments to any of the new choices at www.tiaa-cref.org/Rochester or by calling (800) 410-6497.
Are there expenses associated with opening an SDBA?
To establish a Self-Directed Brokerage Account, you must make a minimum investment of $1,000. Because a brokerage account is not appropriate for all investors, speak with a TIAA-CREF consultant to learn more about this type of account and if it’s right for your investment needs. See the Self-Directed Brokerage Guide at www.tiaa-cref.org/Rochester for detailed information on minimums, fees, and expenses.