The road to retirement. Announcing updates to the Eastern Michigan University Retirement Plans

Transcription

1 The road to retirement Announcing updates to the Eastern Michigan University Retirement Plans

2 Table of contents A new chapter is about to start 1 Your new options 2 Your transition experience 3 Transfer chart for all plan participants 4-5 Retirement plan investment advice 6 New TIAA Brokerage option 7 On-campus events 8 Understanding retirement plan fees 9-11 Q&A We re here to help Back cover b Questions? Call or visit TIAA.org/emich

3 A new chapter is about to start Helping you plan and save for the future is important. That s why we re pleased to announce the following updates to the Eastern Michigan University Retirement Plans. What you need to know New investment options will be added. The new investments, carefully selected by Eastern Michigan University for its employees, may give you the ability to create a diversified retirement portfolio. New Retirement Choice (RC) and Retirement Choice Plus (RCP) contracts will be issued. On September 10, 2018, new contracts will be issued for any retirement plan participant who is currently contributing and any terminated participant who has mutual fund balances. Your current mutual fund balances will be transferred to your new account(s) during the week of September 17, 2018, and all new contributions will be directed to the new account(s) on September 28, A Roth contribution option will be available for the 457(b) Deferred Compensation Plan. With the Roth option, contributions are made with after-tax dollars. The contributions made to your Roth plan and any earnings will be tax free at withdrawal when you reach age 59½.* This may provide you with tax benefits for these savings in retirement. You can receive personalized advice on the plan s investment options from a TIAA financial consultant. This service is available as part of your retirement program at no additional cost to you. Investment advice is available online, by phone or through a one-on-one advice session. A new TIAA Brokerage option will be offered. If you would like to have access to more investment choices, Eastern Michigan University is adding brokerage as an option. Please note: Eastern Michigan University will not monitor the performance of the funds in your personal brokerage account, and TIAA does not offer investment advice for brokerage balances. There will be increased transparency on fees. A new fee structure will make it easier to see the cost of each investment option, as well as fees paid for plan administration. No longer employed by Eastern Michigan University? You are receiving this guide because you have investments in one or more of the Eastern Michigan University Retirement Plans. Even though you are not actively contributing and actions may not be required, you should review this information carefully to learn how your account could be affected. Retirement plan updates start September 10, 2018 Key dates September 10, 2018 September 13 or 14, 2018 Week of September 17, 2018 September 27 or 28, 2018 Events Any contributing participant or participant who holds mutual fund balances will be enrolled in new TIAA account(s) and TIAA will send you a confirmation with important information. Last contribution to your current retirement account(s) (based on your payroll date). Mutual fund balances will be transferred to the new account(s). All contributions will be directed to your new account(s) (based on your payroll date). * Withdrawals of earnings prior to age 59½ are subject to ordinary income tax and a 10% penalty may apply. Earnings can be distributed tax free if distribution is no earlier than five years after contributions were first made and you meet at least one of the following conditions: Age 59½ or older or permanently disabled. Beneficiaries may receive a distribution in the event of your death. For governmental 457(b) plans, withdrawals are only allowed following separation from service or when you reach age 70½. Questions? Call or visit TIAA.org/emich 1

4 Your new options Eastern Michigan University is taking this opportunity to change the investment options available through the plan. The new investments, carefully selected by Eastern Michigan University for its employees, are intended to give you the ability to create a diversified retirement portfolio that matches your investment goals and preferences. To learn more about the new investment options, go to TIAA.org and enter the ticker symbol in the site s search feature. TIAA Brokerage details appear on page 7 of this guide. * TIAA Traditional Annuity is a guaranteed insurance contract and is not an investment for federal securities law purposes. Any guarantees under annuities issued by Teachers Insurance and Annuity Association of America (TIAA) are subject to its claims-paying ability. Interest credited includes a guaranteed rate, plus additional amounts as may be established by the TIAA Board of Trustees. 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. Investment products may be subject to market and other risk factors. See the applicable product literature, or visit TIAA.org and enter a ticker symbol in the site s search feature for details. Annuity account options are available through annuity contracts issued by TIAA or CREF. These contracts are designed for retirement or other long-term goals, and offer a variety of income options, including lifetime income. Payments from the variable annuity accounts are not guaranteed and will rise or fall based on investment performance. GUARANTEED TICKER SYMBOL TIAA Traditional Annuity* (guaranteed annuity) N/A MONEY MARKET TICKER SYMBOL TIAA-CREF Money Market Fund Institutional TCIXX FIXED INCOME (BONDS) TICKER SYMBOL BlackRock Total Return Fund K MPHQX TIAA-CREF Bond Index Fund Institutional TBIIX MULTI-ASSET TICKER SYMBOL CREF Social Choice Account R2 (variable annuity) QCSCPX Vanguard Target Retirement 2015 Fund Investor VTXVX Vanguard Target Retirement 2020 Fund Investor VTWNX Vanguard Target Retirement 2025 Fund Investor VTTVX Vanguard Target Retirement 2030 Fund Investor VTHRX Vanguard Target Retirement 2035 Fund Investor VTTHX Vanguard Target Retirement 2040 Fund Investor VFORX Vanguard Target Retirement 2045 Fund Investor VTIVX Vanguard Target Retirement 2050 Fund Investor VFIFX Vanguard Target Retirement 2055 Fund Investor VFFVX Vanguard Target Retirement 2060 Fund Investor VTTSX Vanguard Target Retirement 2065 Fund Investor VLXVX Vanguard Target Retirement Income Fund Investor VTINX REAL ESTATE TICKER SYMBOL TIAA Real Estate Account (variable annuity) QREARX EQUITIES (STOCKS) TICKER SYMBOL American Funds EuroPacific Growth Fund R6 RERGX American Funds Washington Mutual Investors Fund R6 RWMGX CREF Stock Account R2 (variable annuity) QCSTPX DFA Emerging Markets Portfolio DFEMX Harbor Capital Appreciation Fund Retirement HNACX MassMutual Select Mid-Cap Growth Fund I MEFZX MFS Mid-Cap Value Fund R6 MVCKX MFS New Discovery Value Fund R6 NDVVX TIAA-CREF Equity Index Fund Institutional TIEIX TIAA-CREF International Equity Index Fund Institutional TCIEX TIAA-CREF Large-Cap Value Index Fund Institutional TILVX TIAA-CREF Small-Cap Blend Index Fund Institutional TISBX Vanguard Explorer Fund Admiral VEXRX TIAA BROKERAGE SEE PAGE 7. 2 Questions? Call or visit TIAA.org/emich

5 Your transition experience On or about September 10, 2018, if you are currently contributing and/or if you hold a balance in mutual funds, you will be enrolled in new account(s). Once you are enrolled, TIAA will send you a confirmation that provides additional information about your new account(s). Your current beneficiary information will be applied to your new account(s), but this transition provides a great opportunity to review your elections to ensure they are current. A Retirement Choice (RC) contract will be issued if you are participating in the 403(b) Defined Contribution Retirement Plan and a Retirement Choice Plus (RCP) contract will be issued if you are participating in the 403(b) Group Supplemental Retirement Annuity Plan and/or the 457(b) Deferred Compensation Plan. How your current account balances and future contributions will be affected During the week of September 17, 2018, your current mutual fund balances are scheduled to be transferred to your new account(s) according to the transfer charts on pages 4-5. Once the transfer of your mutual fund balances is completed, you can move your balances to other options on the menu. All contributions will also be directed to the new investments according to the charts on pages 4-5, beginning on September 27 or 28, 2018 (based on your payroll date). If you do not want your future allocation to be invested according to the transfer charts, you can visit TIAA.org/emich and log in to choose other options any time after your new account(s) are set up on September 10, Starting with your September 27 or 28, 2018 payroll, you will also be able to make Roth contributions. With the Roth option, your after-tax contributions have the potential to accumulate tax free. Withdrawals after age 59½ are tax free if distribution is no earlier than five years after contributions were first made. These tax benefits are similar to a Roth IRA. Roth contributions allow higher contribution limits than a Roth IRA. 1 To elect a Roth contribution, submit a new Salary Reduction Agreement to Human Resources. Any balances in TIAA and CREF annuities will remain in your existing account(s), although no new contributions, rollovers or transfers in may be made to these accounts. However, you will be permitted to transfer balances only among the CREF Money Market Account, CREF Stock Account and TIAA Traditional Annuity. If you are interested in transferring any of your annuity balances to your new account(s), call to speak with a TIAA financial consultant for more information. Understanding your new account(s) There are a number of differences between your current Retirement Annuity (RA), Supplemental Retirement Annuity (SRA), Group Retirement Annuity (GRA), or Group Supplemental Retirement Annuity (GSRA) contracts and the new contracts. Most of the differences apply to the TIAA Traditional Annuity and are highlighted below. If you re thinking about transferring some or all of your account balances, make sure you understand the differences before you initiate a transfer. Under the RC and RCP contracts, TIAA Traditional has a rate guarantee that is between 1% and 3%, determined annually, which may be lower than the guaranteed rate in your current contract. 2 The adjustable rate guarantee in the new contracts allows TIAA to be more responsive to the prevailing interest rate environment, and provides the potential for higher credited rates through the crediting of additional amounts. 3 When TIAA Traditional balances are transferred out of an existing contract, you risk giving up a favorable crediting rate on older contributions. TIAA Traditional balances in the RC contract can be liquidated within a shorter time frame than under the existing RA and GRA contracts. Moving money from an existing contract to a new contract is a permanent decision. Money cannot be moved back into the old contract. For details, see the contract comparison chart located at TIAA.org/comparison. If you have questions, call Please note: If you have any recurring transfers or rollovers in your current contracts, you will need to provide updated investment instructions once you have been enrolled in the new account(s). If you do not provide instructions, future transfers or rollovers may be automatically redirected to your new contracts and the default investment option for the plans. Please call TIAA at after September 10, 2018, to provide updated instructions or to learn more. 1 Withdrawals of earnings prior to age 59½ are subject to ordinary income tax and a 10% penalty may apply. Earnings can be distributed tax free if distribution is no earlier than five years after contributions were first made and you meet at least one of the following conditions: age 59½ or older or permanently disabled. Beneficiaries may receive a distribution in the event of your death. For governmental 457(b) plans, withdrawals are only allowed following separation from service or when you reach age 70½. 2 Guarantees are subject to TIAA s claims-paying ability. 3 TIAA s Board of Trustees declares whether additional amounts will be paid in March of each year. Additional amounts are not guaranteed. 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. Questions? Call or visit TIAA.org/emich 3

6 Transfer charts for all plan participants The chart below shows how Eastern Michigan University will transfer balances and direct future contributions to the new investment options. Current investment option Ticker New investment option Ticker American Funds EuroPacific Growth R5 RERFX American Funds EuroPacific Growth Fund R6 RERGX American Funds Washington Mutual R5 RWMFX American Funds Washington Mutual Investors Fund R6 RWMGX DFA Emerging Markets Portfolio DFEMX DFA Emerging Markets Portfolio DFEMX DFA International Small Company I DFISX Age-related Vanguard Target Retirement Fund (See the chart on the next page.) VARIOUS DFA US Micro Cap I DFSCX TIAA-CREF Small-Cap Blend Index Fund Institutional TISBX DFA US Small-Cap Value I DFSVX MFS New Discovery Value Fund R6 NDVVX TIAA-CREF International Equity Index Fund Institutional TIAA-CREF Large-Cap Value Index Fund Institutional TCIEX TIAA-CREF International Equity Index Fund Institutional TCIEX TILVX TIAA-CREF Large-Cap Value Index Fund Institutional TILVX TIAA-CREF Lifecycle 2010 Fund Institutional TCTIX Vanguard Target Retirement Income Fund Investor VTINX TIAA-CREF Lifecycle 2015 Fund Institutional TCNIX Vanguard Target Retirement 2015 Fund Investor VTXVX TIAA-CREF Lifecycle 2020 Fund Institutional TCWIX Vanguard Target Retirement 2020 Fund Investor VTWNX TIAA-CREF Lifecycle 2025 Fund Institutional TCYIX Vanguard Target Retirement 2025 Fund Investor VTTVX TIAA-CREF Lifecycle 2030 Fund Institutional TCRIX Vanguard Target Retirement 2030 Fund Investor VTHRX TIAA-CREF Lifecycle 2035 Fund Institutional TCIIX Vanguard Target Retirement 2035 Fund Investor VTTHX TIAA-CREF Lifecycle 2040 Fund Institutional TCOIX Vanguard Target Retirement 2040 Fund Investor VFORX TIAA-CREF Lifecycle 2045 Fund Institutional TTFIX Vanguard Target Retirement 2045 Fund Investor VTIVX TIAA-CREF Lifecycle 2050 Fund Institutional TFTIX Vanguard Target Retirement 2050 Fund Investor VFIFX TIAA-CREF Lifecycle 2055 Fund Institutional TTRIX Vanguard Target Retirement 2055 Fund Investor VFFVX TIAA-CREF Lifecycle 2060 Fund Institutional TLXNX Vanguard Target Retirement 2060 Fund Investor VTTSX TIAA-CREF Lifecycle Retirement Income Fund Institutional TLRIX Vanguard Target Retirement Income Fund Investor VTINX TIAA-CREF Mid-Cap Growth Fund Institutional TRPWX MassMutual Select Mid-Cap Growth Fund I MEFZX TIAA-CREF Mid-Cap Value Fund Institutional TIMVX MFS Mid-Cap Value Fund R6 MVCKX TIAA-CREF Small-Cap Blend Index Fund Institutional TISBX TIAA-CREF Small-Cap Blend Index Fund Institutional TISBX Vanguard Balanced Index Fund Institutional VBAIX Age-related Vanguard Target Retirement Fund (See the chart on the next page.) VARIOUS Vanguard Explorer Fund Admiral VEXRX Vanguard Explorer Fund Admiral VEXRX continued 4 Questions? Call or visit TIAA.org/emich

7 Transfer chart for all plan participants continued The chart below shows how Eastern Michigan University will direct future contributions for the TIAA and CREF annuities. Any existing balances in the investments listed in the left-hand column will remain where they are. Current investment option Ticker New investment option Ticker CREF Bond Market Account R2 (variable annuity) CREF Equity Index Account R2 (variable annuity) QCBMPX BlackRock Total Return Fund K MPHQX QCEQPX TIAA-CREF Equity Index Fund Institutional TIEIX CREF Global Equities Account R2 (variable annuity) QCGLPX Age-related Vanguard Target Retirement Fund (See the chart below.) VARIOUS CREF Growth Account R2 (variable annuity) QCGRPX Harbor Capital Appreciation Fund Retirement HNACX CREF Inflation-Linked Bond Account R2 (variable annuity) CREF Money Market Account R2 (variable annuity) CREF Social Choice Account R2 (variable annuity) QCILPX BlackRock Total Return Fund K MPHQX QCMMPX TIAA-CREF Money Market Fund Institutional TCIXX QCSCPX CREF Social Choice Account R2 (variable annuity) QCSCPX CREF Stock Account R2 (variable annuity) QCSTPX CREF Stock Account R2 (variable annuity) QCSTPX TIAA Real Estate Account (variable annuity) QREARX TIAA Real Estate Account (variable annuity) QREARX TIAA Traditional Annuity (guaranteed annuity) N/A TIAA Traditional Annuity (guaranteed annuity) N/A Target-date fund birth chart The chart below shows the age-related Vanguard Target Retirement Fund based on your birth year. The Vanguard Target Retirement Fund will also be the new default option for the plans. If you are currently invested in the default option because you have never provided investment instructions, this change will apply to both balances and future contributions unless you make a change to your account. Birth year New investment option Ticker Before 1948 Vanguard Target Retirement Income Fund Investor VTINX Vanguard Target Retirement 2015 Fund Investor VTXVX Vanguard Target Retirement 2020 Fund Investor VTWNX Vanguard Target Retirement 2025 Fund Investor VTTVX Vanguard Target Retirement 2030 Fund Investor VTHRX Vanguard Target Retirement 2035 Fund Investor VTTHX Vanguard Target Retirement 2040 Fund Investor VFORX Vanguard Target Retirement 2045 Fund Investor VTIVX Vanguard Target Retirement 2050 Fund Investor VFIFX Vanguard Target Retirement 2055 Fund Investor VFFVX Vanguard Target Retirement 2060 Fund Investor VTTSX Present Vanguard Target Retirement 2065 Fund Investor VLXVX Questions? Call or visit TIAA.org/emich 5

8 Retirement plan investment advice How to access advice Online Get quick, convenient answers via the Retirement Advisor online tool. Visit TIAA.org/retirementadvisor and log in to your account. By phone or in person Receive personalized retirement plan investment advice either over the phone or in person. Schedule your advice session by calling , weekdays, 8 a.m. to 8 p.m. (ET). You can also schedule online at TIAA.org/schedulenow. As a participant in the plan, you have access to personalized retirement plan advice on the plan s investment options from a TIAA financial consultant. This service is available as part of your retirement program at no additional cost to you. TIAA s advice is designed to help you answer key questions, including: 1. Am I on track to reach my retirement savings goals? We ll help you analyze how your investments are performing, and determine if you re saving enough to help meet your needs. 2. Which combination of retirement plan investments is right for me? Get assistance picking the right investments, based on your plan s investment options, diversifying properly and allocating contributions to balance your need for growth potential with your tolerance for risk. 3. How can I meet my income needs in retirement? Get help determining the amount you ll need to meet your retirement income goals. IMPORTANT: The projections or other information generated by the Retirement Advisor tool regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results and are not guarantees of future results. Results may vary with each use and over time. 6 Questions? Call or visit TIAA.org/emich

9 REFORMAT ACCORDING TO WHAT SIDE OF PAGE THIS IS ON New TIAA Brokerage option Access thousands of mutual funds and many well-known fund families beyond the core investment options. 1 For investors with specialized investing needs, more choices can mean more opportunities to direct retirement investments across markets and asset classes outside of your plan s core lineup. With your brokerage account, you can independently research and select from thousands of mutual fund options and exchange-traded funds (ETFs). Before investing in a brokerage account, consider contacting TIAA to learn more. Learn more about a brokerage account 2 by contacting us at , weekdays, 8 a.m. to 7 p.m. (ET). It s important to understand, Eastern Michigan University will not monitor the performance of the funds offered through the brokerage account, and TIAA does not offer investment advice for brokerage assets. Plan participants will bear the risk of investing through the brokerage account. Eastern Michigan University recommends that you exercise caution and consider seeking professional guidance when investing through a TIAA Brokerage account. 1 The brokerage account option is available to participants who maintain both a legitimate U.S. residential address and a legitimate U.S. mailing address. Certain securities may not be suitable for all investors. Securities are subject to investment risk, including possible loss of the principal amount invested. 2 By opening a brokerage account, you will be charged a commission only on applicable transactions and other account-related fees in accordance with the TIAA Commission and Fee Schedule. Please visit TIAA.org/SDA_CAA. Other fees and expenses apply to a continued investment in the funds and are described in the fund s current prospectus. Questions? Call or visit TIAA.org/emich 7

10 On-campus events Real-time answers to your questions Seminars Consider attending a one-hour seminar presented by a TIAA financial consultant to learn more about the updates to the Eastern Michigan University Retirement Plans at the following dates and times: Date Time Location Monday, September 17, p.m. 1 p.m. G03 Halle Library Auditorium Wednesday, September 19, p.m. 1 p.m. G03 Halle Library Auditorium Friday, September 21, p.m. 1 p.m. G03 Halle Library Auditorium 8 Questions? Call or visit TIAA.org/emich

11 Understanding retirement plan fees When making decisions about your Eastern Michigan University Retirement Plan accounts, it s important to know there are fees associated with many of the plans services and investments. Please know that there have always been costs to participate in the program. Some fees may be paid by your employer; others may be paid by you, based on the services and investments you choose. The recent changes outlined in this guide impact how your plan administration costs will be assessed. General administrative services Your plan charges an annual Administrative Fee to cover services such as recordkeeping, legal, accounting, investment advisory and other plan and participant services.* With the implementation of this plan, an annual Plan Servicing Fee of up to 0.085% ($0.85 per $1,000 invested) will be deducted from certain investments on a quarterly basis, effective October 1, This amount will be realized by assessing a fee to each investment you choose within the plan. Each fee will be applied to your account on the last business day of each quarter and is identified as a TIAA Plan Servicing Fee on your quarterly statements (see the Investment-specific services section for more detail). Your plan will assess an annual fee of 0.012% ($0.12 per $1,000 invested) for independent advisor services which will be divided into quarterly payments. This fee is deducted proportionally from each investment in your account on the last business day of each quarter and is identified as Non- TIAA Plan Servicing Fee on your quarterly statements. Investment-specific services Each of the plan s investment options has a fee for investment management and associated services. Plan participants generally pay for these costs through what is called an expense ratio. Expense ratios are displayed as a percentage of assets. For example, an expense ratio of 0.50% means a plan participant pays $5 annually for every $1,000 in assets. Taking the expense ratio into consideration helps you to compare investment fees. In some cases, investment providers share in the cost of plan administration. This practice is called revenue sharing. An investment company may pay a portion of an investment option s expense ratio to TIAA, the recordkeeper, to help offset the cost of plan administration. If an investment's revenue sharing amount exceeds 0.085%, a credit is applied. If the revenue sharing amount is less than 0.085%, the difference is applied as a Plan Servicing Fee. For information on investment-specific expenses and fees, please refer to the investment table on the following page. You can also find the expense ratios and other fees and expenses at TIAA.org/emich or in the prospectuses at TIAA.org/performance. Brokerage fee TIAA Brokerage customers are charged a commission on all transactions and other account-related fees in accordance with the TIAA Commission and Fee Schedule. Please visit TIAA.org/SDA_CAA 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. All things considered Fees are important, but they are just one factor in your decision-making process. In addition to fees and expenses, you should be sure your investment choices reflect your personal risk tolerance, the time frame until your retirement, and the appropriate balance allocation to suit your investment needs. continued * Plan servicing fees can be deducted from Retirement Choice and Retirement Choice Plus contracts. However, plan servicing fees cannot be deducted from Retirement Annuity, Group Retirement Annuity, Supplemental Retirement Annuity and Group Supplemental Retirement Annuity contracts. Questions? Call or visit TIAA.org/emich 9

12 Understanding retirement plan fees continued Eastern Michigan University s new investment menu and fees The following table details each investment option in the plan and any associated TIAA Plan Servicing Fee and/or Credit. The Total Administrative Fee equals the Revenue Share plus the TIAA Plan Servicing Fee/(Credit). TIAA Traditional, 1 your guaranteed option, is a fixed annuity that pays you interest at competitive crediting rates that are announced in advance. There is no explicit expense ratio because this is a fixed annuity. Investment option share class GUARANTEED Ticker Annual Fund Operating Expenses Gross Expense Ratio 2 % Net Expense Ratio 2 % Plan Servicing Fee Calculations (A + B = C) A. Revenue Sharing 3 % B. Plan Servicing Fee/ (Credit) 4 % C. Total Admin Cost % TIAA Traditional Annuity 1 (guaranteed annuity) N/A N/A N/A (0.065) MONEY MARKET TIAA-CREF Money Market Fund 5 Institutional TCIXX FIXED INCOME (BONDS) BlackRock Total Return Fund 5 K MPHQX TIAA-CREF Bond Index Fund 5 Institutional TBIIX MULTI-ASSET CREF Social Choice Account R2 (variable annuity) QCSCPX (0.115) Vanguard Target Retirement 2015 Fund Investor VTXVX Vanguard Target Retirement 2020 Fund Investor VTWNX Vanguard Target Retirement 2025 Fund Investor VTTVX Vanguard Target Retirement 2030 Fund Investor VTHRX Vanguard Target Retirement 2035 Fund Investor VTTHX Vanguard Target Retirement 2040 Fund Investor VFORX Vanguard Target Retirement 2045 Fund Investor VTIVX Vanguard Target Retirement 2050 Fund Investor VFIFX Vanguard Target Retirement 2055 Fund Investor VFFVX Vanguard Target Retirement 2060 Fund Investor VTTSX Vanguard Target Retirement 2065 Fund Investor VLXVX Vanguard Target Retirement Income Fund Investor VTINX REAL ESTATE TIAA Real Estate Account (variable annuity) QREARX (0.155) continued 10 Questions? Call or visit TIAA.org/emich

13 Understanding retirement plan fees continued Annual Fund Operating Expenses Plan Servicing Fee Calculations (A + B = C) Investment option share class Ticker Gross Expense Ratio 2 % Net Expense Ratio 2 % A. Revenue Sharing 3 % B. Plan Servicing Fee/ (Credit) 4 % C. Total Admin Cost % EQUITIES (STOCKS) American Funds EuroPacific Growth Fund R6 RERGX American Funds Washington Mutual Investors Fund R6 RWMGX CREF Stock Account R2 (variable annuity) QCSTPX (0.115) DFA Emerging Markets Portfolio 5 DFEMX Harbor Capital Appreciation Fund 5 Retirement HNACX MassMutual Select Mid-Cap Growth Fund I MEFZX MFS Mid-Cap Value Fund R6 MVCKX MFS New Discovery Value Fund R6 NDVVX TIAA-CREF Equity Index Fund 5 Institutional TIEIX TIAA-CREF International Equity Index Fund 5 Institutional TCIEX TIAA-CREF Large-Cap Value Index Fund 5 Institutional TILVX TIAA-CREF Small-Cap Blend Index Fund 5 Institutional TISBX Vanguard Explorer Fund Admiral VEXRX TIAA Traditional Annuity is a guaranteed insurance contract and is not an investment for federal securities law purposes. Any guarantees under annuities issued by Teachers Insurance and Annuity Association of America (TIAA) are subject to its claims-paying ability. Interest credited includes a guaranteed rate, plus additional amounts as may be established by the TIAA Board of Trustees. 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. 2 Gross expense ratio includes all of an investment s expenses. Net expense ratio takes into account any investment fee waivers and expense reductions, giving an indication of what is currently being charged. 3 Revenue sharing is a term that describes the practice when investment providers share in the cost of plan administration. Please note that TIAA Traditional, TIAA Real Estate, and all CREF Annuity accounts do not have a revenue sharing, rather they have a plan services offset that is applied to your plan s administrative and recordkeeping costs. 4 Plan Servicing Fee/Credit is determined by subtracting the amount of revenue share provided by each investment option you choose from 0.085%, the plan s cost for administrative services. If you choose an investment with revenue sharing of more than 0.085%, you ll receive a credit for the difference. 5 A contractual or voluntary fee waiver may apply. See the fund prospectus for details. Questions? Call or visit TIAA.org/emich 11

14 Q&A 1. Why is Eastern Michigan University updating the Eastern Michigan University Retirement Plans? Eastern Michigan University is committed to providing you with competitive retirement benefits and recently conducted a review of the retirement program. The resulting updates are intended to give you the investments, services and tools you need to pursue your retirement savings goals. 2. How can I learn about the new investment options? A list of the new investment options is included in this guide. You can visit the dedicated retirement plan website at TIAA.org/emich for additional information. 3. What if I would like help making investment choices? You can get personalized advice on the plan s investment options from a TIAA financial consultant. This service is available as part of your retirement program at no additional cost to you. To schedule an advice session, call TIAA at , weekdays, 8 a.m. to 8 p.m. (ET). You can also schedule online at TIAA.org/schedulenow. 4. What should I expect from an advice session? You can expect a thorough review of your account and an action plan for moving forward. Advice sessions last approximately thirty minutes. Bring all your investment account statements, including any retirement investments outside of the retirement plan and your most recent Social Security statement, if available. A TIAA financial consultant will use this information to understand your current financial situation and develop an action plan. You may bring anyone you like to your session with you. continued 12 Questions? Call or visit TIAA.org/emich

15 Q&A continued 5. What happens to my current outstanding loan, systematic withdrawal, TPA (transfer payout annuity), or required minimum distribution? You will receive separate communications if any actions are required on your part. 6. How do target-date funds work? Each target-date fund consists of underlying mutual funds that invest in a broad range of asset classes. The allocations and risk level depend on how many years remain until the fund s target date. To help reduce risk as the fund s target date approaches, the fund s mix of stocks, bonds and other types of investments is adjusted to a more conservative mix. As with all mutual funds, the principal value of a target-date fund isn t guaranteed at any time and will fluctuate with market changes. The target date indicates when investors may plan to start making withdrawals. However, you are not required to withdraw your money at the target date. After the target date, some of your money may be merged into a fund with a more stable asset allocation. 1 A TIAA financial consultant can help you decide whether a target-date fund is right for you. 7. Does it make sense to consolidate my retirement accounts? Some individuals might find it easier to manage their retirement money by working with only one provider. That said, transferring balances can sometimes trigger costs. Before consolidating outside retirement balances, check with your employee benefits office to see if you can transfer those balances directly to your TIAA retirement account. You should carefully consider all your options. For instance, you may be able to leave money with a prior provider, roll over money to an IRA, or cash out all or part of the account value. Weigh the advantages and disadvantages of each option carefully, including investment options and services, fees and expenses, withdrawal options, required minimum distributions, tax treatment and your particular financial needs. You should seek the guidance of your financial professional and tax advisor before consolidating balances. 8. Can I move money from an existing TIAA account to a new one? Yes, but it s a move you ll want to weigh carefully. You may move money out of your existing TIAA contracts to the new contracts, subject to any restrictions that apply to the investments. However, any money that you move out of your existing contract(s) cannot be moved back into them. Money in the TIAA Traditional Annuity deserves special attention. For instance, money moved out of TIAA Traditional in the existing contracts will no longer receive the 3% minimum guaranteed rate. In short, the pros and cons are different for every participant. To learn more about TIAA Traditional, liquidity rules, and the differences between RC and RCP contracts, please see the contract comparison chart at TIAA.org/comparison or contact TIAA at What are annuities? There are different types of annuities, but they are typically designed to give you the opportunity to grow your money while you re working and provide you with the option to receive income for life when you retire. In fact, annuities are the only retirement products that can guarantee to pay you (or you and a spouse or partner) income for life. There are two types of annuities: Guaranteed annuities (also known as fixed annuities): Earn a minimum guaranteed interest rate on your contributions, plus the potential for additional amounts of interest. In retirement, guaranteed annuities can offer you income for life that will never fall below a certain guaranteed level and provide income that is guaranteed to last for your lifetime. 2 Variable annuities: Invest in a variety of asset classes and account values will fluctuate based on the performance of the investments in the accounts. It is possible to lose money in variable annuities. In retirement, variable annuities can provide an income stream that is guaranteed to last for your lifetime, but the actual amount will rise or fall based on investment performance. 1 Target-date funds share the risks associated with the types of securities held by each of the underlying funds in which they invest. In addition to the fees and expenses associated with the target-date funds, there is exposure to the fees and expenses associated with the underlying mutual funds. 2 Guarantees are based on the claims-paying ability of the issuing company. Questions? Call or visit TIAA.org/emich 13

16 We re here to help Not sure where to begin? Let us help you take the next step! In person Phone Online Schedule a one-on-one advice session by calling TIAA at , weekdays, 8 a.m. to 8 p.m. (ET) or visit TIAA.org/schedulenow. There is no additional cost to you for this service. If you have any questions or would like assistance selecting your new investment options, call TIAA at , weekdays, 8 a.m. to 10 p.m. and Saturday, 9 a.m. to 6 p.m. (ET). Manage your account online by going to TIAA.org/emich and selecting Log In. If you re new to TIAA, select Log in, then click on Register for Online Access. Follow the on-screen directions to gain online access to your account. 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. 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. Please call or go to TIAA.org/emich 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 Bank of New York Mellon Corporation, Member FINRA, NYSE, SIPC Teachers Insurance and Annuity Association of America-College Retirement Equities Fund, 730 Third Avenue, New York, NY MT _ (07/18)