New opportunities for your retirement strategy. Announcing enhancements to the Macalester College Faculty and Staff Retirement Plan

Transcription

1 New opportunities for your retirement strategy Announcing enhancements to the Macalester College Faculty and Staff Retirement Plan

2 Table of contents A new chapter is about to start 1 New tiered investment options 2-3 For current TIAA plan participants 4-5 For current Vanguard plan participants 6-9 On-campus events 10 Retirement plan investment advice 11 New TIAA Brokerage option 12 Q&A 13 Accessing your account Back cover b Questions? Call or visit TIAA.org/macalester

3 A new chapter is about to start Planning and saving for the future is important to all of us here at Macalester College. That s why we re pleased to announce the following updates to the Macalester College Faculty and Staff Retirement Plan. What you need to know The basic design of the retirement plan such as contribution rates and eligibility will not change. TIAA will become the single administrative provider for the Faculty and Staff Retirement Plan. A consolidation with TIAA will enable us to deliver comprehensive retirement services at a reduced cost. Introducing new investment options. The retirement plan currently offers more than 100 investment options. A new, streamlined menu of 29 core investment funds has been carefully selected to give you the opportunity to choose a mix of investments based on your financial goals and preferences. The new lineup of mutual funds and annuities will be offered from well-known companies such as BlackRock, Prudential, T. Rowe Price, TIAA and Vanguard among others. Blackout period for Vanguard balances only. To facilitate a smooth transfer of current investment balances from Vanguard to TIAA, a brief blackout period will take place. During this time, you will not be able to change your investment choices, affect loans, make withdrawals or transfer funds. We are adding a new TIAA Brokerage option. For participants who want more investment choices, we re adding a voluntary brokerage option. The brokerage option will allow participants to access a wide variety of additional investments, outside of the 29 core investments chosen for the plan. Please note, Macalester College will not monitor the performance of the funds accessed in your personal brokerage account and TIAA does not offer investment advice for brokerage assets outside of the core 29 funds the plan will offer. Retirement investment advice. You can receive personalized advice on the plan s core 29 investment options. 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 service, Retirement Plan Portfolio Manager, will also be available. No longer employed by Macalester College? You are receiving this guide because you have investments in the Macalester College Faculty and Staff Retirement Plan. 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 enhancements start in November 2018 Key dates Events Beginning November 5, 2018 November 27, 2018 November 28, 2018 Starting December 2018 Week of December 7, 2018 December 24, 2018 at 11 a.m. (CT) January 3, 2019 January 10, 2019 On-campus informational seminars begin. New investment options at TIAA go into effect. Participants new to TIAA from Vanguard, will be automatically enrolled in a new account and receive a confirmation kit. All contributions to Vanguard will be re-directed to your new TIAA account. All TIAA mutual fund balances for current TIAA participants in the legacy contracts are transferred to new Retirement Choice (RC) contracts. See page 4 for details. Blackout period expected to begin for Vanguard balances. See page 6 for details. On or about this date, balances transfer from Vanguard to TIAA. TIAA becomes the single administrative provider for the retirement plan. Blackout period expected to end. You can now access and 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. Questions? Call or visit TIAA.org/macalester 1

4 New tiered investment options Investment tiers The new investment options offer you flexibility to create a retirement portfolio that matches your investment preferences and goals. While there are many different strategies for investing, here are four common approaches to consider and you can choose from one or all four. Remember, you have access to a one-on-one advice session, if you want help deciding on a strategy, investment options, or both. Tier 1: Allocation Investments An allocation investment is a fund that provides investors with a diversified portfolio of investments across various asset classes. Included in this tier are target-date funds. Target-date funds are professionally managed investments designed for individuals who prefer a single diversified option. 1,2 Selecting a target-date fund may be a good choice if you prefer a hands-off approach to managing your retirement savings. Each of these investments creates a diversified portfolio within one fund, based on your expected retirement year. The target date indicates when you may plan to begin making withdrawals, and the fund s investments become more conservative as the target date approaches. After the target date, the fund may be merged into a fund designed for investors already in retirement. As with all mutual funds, the principal value of a target-date fund isn t guaranteed at any time, even at the target date. 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. Tier 2: Passive Investments A passive investment seeks to approximate the performance of a particular benchmark or market index, rather than to beat the benchmark or market index. Because the objective is simply to mirror the holdings and return of a particular benchmark (for example, the S&P 500), less research is needed and transactions occur less frequently. As a result, expenses of passive investments tend to be lower than those of actively managed funds. While these investments typically perform very similarly to the benchmarks they track, you should be aware that index funds cannot guarantee that they will meet a benchmark s performance. Tier 3: Active Investments Actively managed investment options seek to exceed the performance of their benchmarks. Unlike the managers of passive investments, the managers of actively managed investments do not attempt to mirror the holdings and performance of a benchmark or index. Since actively managed strategies often involve considerable research and because transactions within these options tend to occur more frequently, actively managed investment options often have higher expenses than index funds. Tier 4: Self-Directed Brokerage Option The TIAA Brokerage option provides access to thousands of mutual funds from many well-known fund families, including some of the existing TIAA and Vanguard investment options that will not be offered on the new investment menu. While the new investment lineup in Tiers 1 through 3 seeks to meet the majority of needs, the brokerage option may appeal to active, experienced investors or those investors who desire more investment choices. There are no fees to open a brokerage account, and trading fees will be waived through February 28, Please note, Macalester College does not monitor investments offered through the brokerage option. For more information, see page 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 Diversification is a technique to help reduce risk. It is not guaranteed to protect against loss. 3 After February 28, 2019, by opening a brokerage account, you will be charged a commission only on applicable transactions and other accountrelated fees in accordance with the TIAA Commission and Fee Schedule, available at TIAA.org/SDA_CAA. Other fees and expenses apply to a continued investment in the funds and are described in each fund s current prospectus. Trading fees will be reinstated without written notification. Automatic payroll contributions will not incur a trading fee. 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. 2 Questions? Call or visit TIAA.org/macalester

5 New tiered investment options continued Your new investment options Tier 1: Allocation Investments Tier 2: Passive Investments Tier 3: Active Investments Investment Option Birth Year (Target Date) Ticker Symbol BlackRock LifePath Index Retire K 1 Before 1953 LIRKX BlackRock LifePath Index 2020 K LIMKX BlackRock LifePath Index 2025 K LIBKX BlackRock LifePath Index 2030 K LINKX BlackRock LifePath Index 2035 K LIJKX BlackRock LifePath Index 2040 K LIKKX BlackRock LifePath Index 2045 K LIHKX BlackRock LifePath Index 2050 K LIPKX BlackRock LifePath Index 2055 K LIVKX BlackRock LifePath Index 2060 K 1 After 1993 LIZKX CREF Stock R2 (Variable Annuity) QCSTPX Investment Option Ticker Symbol Vanguard Total Bond Market Index Admiral VBTLX Vanguard Institutional Index I VINIX Vanguard FTSE Social Index Investor VFTSX Vanguard Total International Stock Index Admiral VTIAX Vanguard Extended Market Index Admiral VEXAX Investment Option Ticker Symbol Carillon Eagle Mid-Cap Growth R6 HRAUX MFS New Discovery Value R6 NDVVX Prudential Total Return Bond Q PTRQX T. Rowe Price Institutional International Core Equity TRCEX T. Rowe Price QM US Small-Cap Growth Equity I 2 TQAIX TIAA Real Estate Account (Variable Annuity) QREARX TIAA Stable Value (Guaranteed Annuity) 3,4 N/A TIAA Traditional Annuity (Guaranteed Annuity) 3 N/A Vanguard Equity-Income Admiral VEIRX Vanguard Federal Money Market Investor VMFXX Vanguard International Growth Admiral VWILX Vanguard PRIMECAP Admiral VPMAX Wells Fargo Special Mid-Cap Value R6 WFPRX Tier 4: Self-Directed Brokerage 4 See TIAA Brokerage on page 12. To learn more about the new investment options, go to TIAA.org and enter the ticker symbol in the site s search feature. 1 A contractual and voluntary fee waiver applies. See prospectus for the fee waiver expiration date and page 13 for a description. 2 A redemption fee waiver applies. See prospectus for the redemption fee details and page 13 for a description. 3 TIAA Traditional Annuity and TIAA Stable Value are guaranteed insurance contracts and are not investments 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. 4 TIAA Stable Value equity wash restriction. In order to provide the performance, stability, and liquidity attributes of a stable value option, participant transfers from stable value options are subject to an industry standard 90-day equity wash rule. This means participants are prohibited from transferring from TIAA Stable Value directly to competing funds. Competing funds are plan investment options that exhibit a pattern of performance consistent with stability and include money market funds, short-term bond funds, the TIAA Real Estate account, and the TIAA Brokerage account. The TIAA Brokerage account option is considered a competing fund since it offers access to competing funds. Participants wishing to transfer amounts from TIAA Stable Value to competing funds must first transfer to noncompeting funds, where the amount originally transferred must remain for 90 days before the participant can then transfer the amount to one or more competing funds. In addition, to minimize the negative effects of frequent trading, transfers into TIAA Stable Value are restricted for 30 days following a transfer out. Questions? Call or visit TIAA.org/macalester 3

6 For current TIAA plan participants þ Action steps: þ Select investments. Starting November 27, 2018, you can update your investment choices for future contributions and transferred balances. See the back cover for steps to access your account. þ Check your beneficiary designation. It s important to keep your beneficiary information up to date. Please review your choice(s) at your earliest convenience. þ Attend a seminar. Find out about the retirement plans changes and steps you may wish to take. See page 10. þ Get advice. Has it been a while since you reviewed your investment mix? You re eligible to receive retirement plan investment advice at no additional cost. It s all about helping you retire on your terms. See page 11. How your future contributions and account balances will be affected Macalester College is taking this opportunity to change the investment options available through the plan. Starting November 27, 2018, your future contributions will be transferred to the new investment options as shown in the chart on page 5. If you are currently in a Retirement Choice 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 Retirement Choice contract the week of December 7, If you do not have a Retirement Choice 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. For participants invested in TIAA Traditional Annuity There are a number of differences between the Retirement Annuity (RA), Supplemental Retirement Annuity (SRA), Group Retirement Annuity (GRA) and/or Group Supplemental Retirement Annuity (GSRA) contracts and the new Retirement Choice 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 to your new contract, make sure you understand the differences before you initiate a transfer. Under the Retirement Choice contract, 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. 1 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. 2 When TIAA Traditional balances are transferred out of an existing contract, you risk giving up a favorable crediting rate(s) on older contributions. TIAA Traditional balances in the Retirement Choice contract can be liquidated within a shorter time frame than under the existing Retirement Annuity and Group Retirement Annuity contracts. 1 Guarantees are subject to TIAA s claims-paying ability. 2 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. Moving money from an existing contract to a new contract is a permanent decision. Money cannot be moved back into legacy contracts. For details, see the contract comparison chart located at TIAA.org/ contractcomparison. If you have questions, call If you have any recurring transfers or rollovers in your current contracts, you will need to provide updated investment instructions. 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 plan. Please call TIAA at the number above to provide updated instructions or to learn more. continued 4 Questions? Call or visit TIAA.org/macalester

7 For current TIAA plan participants continued Transfer chart for TIAA plan participants The chart below shows how Macalester College will transfer future contributions and current account balances to the new investment options. Current TIAA Investment Option Ticker Future Investment Option Ticker CREF Bond Market R2 (Variable Annuity) 1 QCBMPX Prudential Total Return Bond Q PTRQX CREF Equity Index R2 (Variable Annuity) 1 QCEQPX Vanguard Institutional Index I VINIX CREF Global Equities R2 (Variable Annuity) QCGLPX Age-based BlackRock LifePath Fund Various CREF Growth R2 (Variable Annuity) 1 QCGRPX Vanguard PRIMECAP Admiral VPMAX CREF Inflation-Linked Bond R2 (Variable Annuity) 1 QCILPX Prudential Total Return Bond Q PTRQX CREF Money Market R2 (Variable Annuity) 1 QCMMPX Vanguard Federal Money Market Investor VMFXX CREF Social Choice R2 (Variable Annuity) 1 QCSCPX Age-based BlackRock LifePath Fund Various CREF Stock R2 (Variable Annuity) 1 QCSTPX CREF Stock R2 (Variable Annuity) QCSTPX TIAA Real Estate Account (Variable Annuity) 1 QREARX TIAA Real Estate Account (Variable Annuity) QREARX TIAA Stable Value (Guaranteed Annuity) 1 N/A TIAA Stable Value (Guaranteed Annuity) N/A TIAA Traditional Annuity (Guaranteed Annuity) 1 N/A TIAA Traditional Annuity (Guaranteed Annuity) N/A TIAA-CREF International Equity Premier TREPX Vanguard International Growth Admiral VWILX TIAA-CREF Large-Cap Value Premier TRCPX Vanguard Equity-Income Admiral VEIRX TIAA-CREF Lifecycle 2010 Premier TCTPX BlackRock LifePath Index 2020 K LIMKX TIAA-CREF Lifecycle 2015 Premier TCFPX BlackRock LifePath Index 2020 K LIMKX TIAA-CREF Lifecycle 2020 Premier TCWPX BlackRock LifePath Index 2020 K LIMKX TIAA-CREF Lifecycle 2025 Premier TCQPX BlackRock LifePath Index 2025 K LIBKX TIAA-CREF Lifecycle 2030 Premier TCHPX BlackRock LifePath Index 2030 K LINKX TIAA-CREF Lifecycle 2035 Premier TCYPX BlackRock LifePath Index 2035 K LIJKX TIAA-CREF Lifecycle 2040 Premier TCZPX BlackRock LifePath Index 2040 K LIKKX TIAA-CREF Lifecycle 2045 Premier TTFPX BlackRock LifePath Index 2045 K LIHKX TIAA-CREF Lifecycle 2050 Premier TCLPX BlackRock LifePath Index 2050 K LIPKX TIAA-CREF Lifecycle 2055 Premier TTRPX BlackRock LifePath Index 2055 K LIVKX TIAA-CREF Lifecycle 2060 Premier TLXPX BlackRock LifePath Index 2060 K LIZKX TIAA-CREF Lifecycle Retire Income Premier TPILX BlackRock LifePath Index Retire K LIRKX TIAA-CREF Mid-Cap Growth Premier TRGPX Carillon Eagle Mid-Cap Growth R6 HRAUX TIAA-CREF Mid-Cap Value Premier TRVPX Wells Fargo Special Mid-Cap Value R6 WFPRX TIAA-CREF Small-Cap Equity Premier TSRPX T. Rowe Price QM US Small-Cap Growth Equity I TQAIX 1 Any annuity account balances in existing legacy accounts, will remain in those accounts however no new contributions, rollovers or transfers can be made into these accounts. Questions? Call or visit TIAA.org/macalester 5

8 For current Vanguard plan participants þ Action steps: þ Select investments. Once your new account is issued, you can update your investment choices for future contributions. Please see the back cover for steps to access your account. Changes to account balances can be made after the blackout period has ended. þ Name your beneficiary. Your beneficiary designation will be set to Estate. Naming a beneficiary is an important aspect of managing your retirement account. Please complete this task at your earliest convenience. 1 þ Attend a seminar. Find out about the retirement plans changes and steps you may wish to take. See page 10. þ Get advice. Has it been a while since you reviewed your investment mix? You re eligible to receive retirement plan investment advice at no additional cost. It s all about helping you retire on your terms. See page For married participants: Under many retirement plans, spouses are entitled to receive 50% of the participant s retirement plan assets. If you would like to direct less than 50% to your spouse, you and your spouse will need to complete a spousal waiver form for each affected contract. How your future contributions and current account balances will be affected 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 until you update this information. How your future contributions and current account balances will be affected Starting December 14, 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 chart on pages 7-8. You can change the way future contributions are directed starting on November 28, You can make changes to your account balances with TIAA once the blackout period has ended on January 10, Blackout period To help ensure the smooth transfer of account balance(s) from Vanguard, there will be a brief blackout period. During this time, you will not be able to perform transactions (e.g., change investments, make withdrawals, transfer funds, etc.). The blackout period is expected to begin at Vanguard on December 24, 2018, at 11 a.m. (CT). and is expected to end on or before January 10, Please note: The date of the plan changes 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. Payroll contributions to the Faculty and Staff Retirement Plan will continue to be withheld during the blackout period. See the enclosed blackout notice for more details. Investments with Vanguard will transfer in one of two ways: Existing fund-to-replacement fund: Your account balance(s) will move from Vanguard to the TIAA platform following a fund-to-fund transfer process. This process directs balances and contributions to a replacement fund on the new menu as shown in the transfer chart on pages 7-8. Account balance(s) from Vanguard will be applied to the new investment option(s) as of 4 p.m. (ET) on the date the balance(s) are received in accurate and complete order. Your account will not be invested in the new funds for at least one business day. You ll receive two confirmations: One from Vanguard showing the transfer out of your account and a second from TIAA showing the balance(s) applied to your TIAA account. Existing fund-to-blackrock target-date fund: Any balance(s) directed to a BlackRock target-date fund will be transferred first to the CREF Money Market. Once the information is received from Vanguard, TIAA will then transfer the balance(s) from the CREF Money Market to an age-appropriate BlackRock target-date fund. Typically, you ll receive three confirmations: one from Vanguard showing the transfer out of your account, one from TIAA for the transfer to the CREF Money Market, and another one from TIAA for the transfer to the age-appropriate BlackRock target-date fund. continued 6 Questions? Call or visit TIAA.org/macalester

9 For current Vanguard plan participants continued Transfer chart for Vanguard participants The chart below shows how Macalester College will transfer future contributions and current account balances to the new investment options at TIAA. Current Investment Option at Vanguard Ticker Future Investment Option at TIAA Ticker Vanguard 500 Index Investor VFINX Vanguard Institutional Index I VINIX Vanguard Balanced Index Investor VBINX Age-based BlackRock LifePath Fund Various Vanguard Capital Opportunity Investor VHCOX Vanguard PRIMECAP Admiral VPMAX Vanguard Capital Value Investor VCVLX Vanguard Extended Market Index Admiral VEXAX Vanguard Convertible Securities Investor VCVSX Age-based BlackRock LifePath Fund Various Vanguard Developed Markets Index Investor VDVIX Vanguard Total International Stock Index Admiral VTIAX Vanguard Diversified Equity Investor VDEQX Vanguard PRIMECAP Admiral VPMAX Vanguard Dividend Appreciation Index Investor VDAIX Vanguard Institutional Index I VINIX Vanguard Dividend Growth Investor VDIGX Vanguard Institutional Index I VINIX Vanguard Emerging Mkts Stock Index Investor VEIEX Age-based BlackRock LifePath Fund Various Vanguard Energy Investor VGENX Age-based BlackRock LifePath Fund Various Vanguard Equity-Income Investor VEIPX Vanguard Equity-Income Admiral VEIRX Vanguard European Stock Index Investor VEURX Age-based BlackRock LifePath Fund Various Vanguard Explorer Investor VEXPX T. Rowe Price QM US Small-Cap Growth Equity TQAIX Vanguard Extended Market Index Investor VEXMX Vanguard Extended Market Index Admiral VEXAX Vanguard Federal Money Market Investor VMFXX Vanguard Federal Money Market Investor VMFXX Vanguard FTSE All-World ex-us Index Investor VFWIX Vanguard Total International Stock Index Admiral VTIAX Vanguard FTSE All-World ex-us Small-Cap Index Investor VFSVX Age-based BlackRock LifePath Fund Various Vanguard FTSE Social Index Investor VFTSX Vanguard FTSE Social Index Investor VFTSX Vanguard Global Equity Investor VHGEX Age-based BlackRock LifePath Fund Various Vanguard GNMA Investor VFIIX Prudential Total Return Bond Q PTRQX Vanguard Growth & Income Investor VQNPX Vanguard Institutional Index I VINIX Vanguard Growth Index Investor VIGRX Vanguard PRIMECAP Admiral VPMAX Vanguard Health Care Investor VGHCX Age-based BlackRock LifePath Fund Various Vanguard High Dividend Yield Index Investor VHDYX Vanguard Equity-Income Admiral VEIRX Vanguard High-Yield Corporate Investor VWEHX Prudential Total Return Bond Q PTRQX Vanguard Inflation-Protected Securities Investor VIPSX Prudential Total Return Bond Q PTRQX Vanguard Interm-Term Bond Index Investor VBIIX Vanguard Total Bond Market Index Admiral VBTLX Vanguard Interm-Term Investment-Grade Investor VFICX Prudential Total Return Bond Q PTRQX Vanguard Interm-Term Treasury Investor VFITX Prudential Total Return Bond Q PTRQX Vanguard International Explorer Investor VINEX Age-based BlackRock LifePath Fund Various Vanguard International Growth Investor VWIGX Vanguard International Growth Admiral VWILX Vanguard International Value Investor VTRIX T. Rowe Price Institutional International Core Equity TRCEX Vanguard Large-Cap Index Investor VLACX Vanguard Institutional Index I VINIX continued Questions? Call or visit TIAA.org/macalester 7

10 For current Vanguard plan participants continued Transfer chart for Vanguard participants Current Investment Option at Vanguard Ticker Future Investment Option at TIAA Ticker Vanguard LifeStrategy Cnsrv Gr Investor VSCGX Age-based BlackRock LifePath Fund Various Vanguard LifeStrategy Growth Investor VASGX Age-based BlackRock LifePath Fund Various Vanguard LifeStrategy Income Investor VASIX Age-based BlackRock LifePath Fund Various Vanguard LifeStrategy Moderate Growth Investor VSMGX Age-based BlackRock LifePath Fund Various Vanguard Long-Term Bond Index Investor VBLTX Prudential Total Return Bond Q PTRQX Vanguard Long-Term Investment-Grade Investor VWESX Prudential Total Return Bond Q PTRQX Vanguard Long-Term Treasury Investor VUSTX Prudential Total Return Bond Q PTRQX Vanguard Mid-Cap Growth Investor VMGRX Carillon Eagle Mid-Cap Growth R6 HRAUX Vanguard Mid-Cap Index Investor VIMSX Vanguard Extended Market Index Admiral VEXAX Vanguard Mid-Cap Growth Index Investor VMGIX Carillon Eagle Mid-Cap Growth R6 HRAUX Vanguard Mid-Cap Value Index Investor VMVIX Wells Fargo Special Mid-Cap Value R6 WFPRX Vanguard Morgan Growth Investor VMRGX Vanguard PRIMECAP Admiral VPMAX Vanguard Pacific Stock Index Investor VPACX Age-based BlackRock LifePath Fund Various Vanguard Precious Metals and Mining Investor VGPMX Age-based BlackRock LifePath Fund Various Vanguard PRIMECAP Core Investor VPCCX Vanguard PRIMECAP Admiral VPMAX Vanguard PRIMECAP Investor VPMCX Vanguard PRIMECAP Admiral VPMAX Vanguard REIT Index Investor VGSIX TIAA Real Estate QREARX Vanguard Selected Value Investor VASVX Wells Fargo Special Mid-Cap Value R6 WFPRX Vanguard Short-Term Bond Index Investor VBISX TIAA Stable Value (Guaranteed Annuity) N/A Vanguard Short-Term Investment-Grade Investor VFSTX TIAA Stable Value (Guaranteed Annuity) N/A Vanguard Short-Term Treasury Investor VFISX TIAA Stable Value (Guaranteed Annuity) N/A Vanguard Small-Cap Growth Index Investor VISGX T. Rowe Price QM US Small-Cap Growth Equity TQAIX Vanguard Small-Cap Index Investor NAESX Vanguard Extended Market Index Admiral VEXAX Vanguard Small-Cap Value Index Investor VISVX MFS New Discovery Value R6 NDVVX Vanguard STAR Investor VGSTX Age-based BlackRock LifePath Fund Various Vanguard Strategic Equity Investor VSEQX Vanguard Extended Market Index Admiral VEXAX Vanguard Strategic Small-Cap Equity Investor VSTCX Vanguard Extended Market Index Admiral VEXAX Vanguard Target Retirement 2015 Investor VTXVX BlackRock LifePath Index 2020 LIMKX Vanguard Target Retirement 2020 Investor VTWNX BlackRock LifePath Index 2020 LIMKX Vanguard Target Retirement 2025 Investor VTTVX BlackRock LifePath Index 2025 LIBKX Vanguard Target Retirement 2030 Investor VTHRX BlackRock LifePath Index 2030 LINKX Vanguard Target Retirement 2035 Investor VTTHX BlackRock LifePath Index 2035 LIJKX Vanguard Target Retirement 2040 Investor VFORX BlackRock LifePath Index 2040 LIKKX Vanguard Target Retirement 2045 Investor VTIVX BlackRock LifePath Index 2045 LIHKX Vanguard Target Retirement 2050 Investor VFIFX BlackRock LifePath Index 2050 LIPKX Vanguard Target Retirement 2055 Investor VFFVX BlackRock LifePath Index 2055 LIVKX continued 8 Questions? Call or visit TIAA.org/macalester

11 For current Vanguard plan participants continued Transfer chart for Vanguard participants Current Investment Option at Vanguard Ticker Future Investment Option at TIAA Ticker Vanguard Target Retirement 2060 Investor VTTSX BlackRock LifePath Index 2060 LIZKX Vanguard Target Retirement 2065 Investor VLXVX BlackRock LifePath Index 2060 LIZKX Vanguard Target Retirement Income Investor VTINX BlackRock LifePath Index Retirement LIRKX Vanguard Total Bond Market Index Investor VBMFX Vanguard Total Bond Market Index Admiral VBTLX Vanguard Total International Stock Index Investor VGTSX Vanguard Total International Stock Index Admiral VTIAX Vanguard Total Stock Market Index Investor VTSMX Vanguard Institutional Index I VINIX Vanguard Total World Stock Index Investor VTWSX Age-based BlackRock LifePath Fund Various Vanguard US Growth Investor VWUSX Vanguard PRIMECAP Admiral VPMAX Vanguard Value Index Investor VIVAX Vanguard Equity-Income Admiral VEIRX Vanguard Wellesley Income Investor VWINX Age-based BlackRock LifePath Fund Various Vanguard Wellington Investor VWELX Age-based BlackRock LifePath Fund Various Vanguard Windsor II Investor VWNFX Vanguard Equity-Income Admiral VEIRX Vanguard Windsor Investor VWNDX Vanguard Equity-Income Admiral VEIRX Macalester College has instructed TIAA to transfer any account balances in any investment option not listed above to the age-based BlackRock LifePath fund that corresponds to the year you turn age 65. Questions? Call or visit TIAA.org/macalester 9

12 On-campus events Real-time answers to your questions Seminars Consider attending a one-hour seminar presented by Employment Services and TIAA to learn more about the enhancements to the Faculty and Staff Retirement Plan at the following dates and times: Date Time Location 10 a.m. 11 a.m. Monday, November 5 12 noon 1 p.m. 2 p.m. 3 p.m. John B. Davis Lecture Hall in the Monday, November a.m. 11 a.m. 12 noon 1 p.m. 2 p.m. 3 p.m. Campus Center One-on-one advice session You can get personalized retirement plan advice on the plan s investment options from a TIAA financial consultant. This service is available as part of your retirement plan at no additional cost to you. You can schedule an advice session with TIAA by calling , weekdays, 7 a.m. to 7 p.m. (CT), or visit TIAA.org/schedulenow. A TIAA financial consultant will be on-campus the following dates: Wednesday, November 14 Wednesday, December 5 Thursday, November 15 Thursday, December 6 Friday, November 16 Friday, December 7 Monday, December 3 Monday, December 10 Tuesday, December 4 10 Questions? Call or visit TIAA.org/macalester

13 Retirement plan investment advice One-on-one advice with a TIAA financial consultant As a participant in the Faculty and Staff Retirement 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. How to access TIAA s 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, 7 a.m. to 7 p.m. (CT). You can also schedule online at TIAA.org/schedulenow. New optional Retirement Plan Portfolio Manager service Also known as a managed account, this convenient optional 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. Features include: Customized advice: Based on your income needs in retirement, we ll help you decide how much to save, an appropriate asset mix and specific investment options. Ongoing monitoring and portfolio adjustments: We ll make adjustments based on market conditions and other factors that may affect your investments. These adjustments include quarterly asset reallocation and rebalancing. Modify direction as needed: You can update your preferences online 24/7 or through your advisor and we ll fine-tune our recommendations. Your plan becomes increasingly personalized as you add details to your profile. Quarterly statements: Shows adjustments made to your portfolio so you can see your current investment mix. How much does it cost? If you enroll in this service, an annual fee of 0.30% would be deducted from your account on a quarterly basis. The fee is based on an average daily balance of your enrolled plan during the quarter. For example: If you had an average balance of $10,000 in your account, the annual fee would be $10,000 x = $ 30.00, a quarterly fee of $7.50 which would be deducted on the first day of the subsequent quarter. To enroll or learn more, please call TIAA and a financial consultant will assist you. 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. Questions? Call or visit TIAA.org/macalester 11

14 New TIAA Brokerage option Before investing in a brokerage account, consider contacting TIAA to learn more. Learn more about a brokerage account 2 by contacting us at , weekdays, 7 a.m. to 6 p.m. (CT). Access thousands of mutual funds and many well-known fund families beyond the core investment options. 1 For investors with specialized investing needs, more choice can mean more opportunity 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 funds. There are no fees to open a brokerage account, and trading fees will be waived through February 28, It s important to understand Macalester College 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. Macalester College recommends that you exercise caution and consider seeking professional guidance when investing through a TIAA Brokerage account. 1 After February 28, 2019, 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, available at TIAA.org/SDA_CAA. Other fees and expenses apply to a continued investment in the funds and are described in each fund s current prospectus. Trading fees will be reinstated without written notification. Automatic payroll contributions will not incur a trading fee. 2 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. 12 Questions? Call or visit TIAA.org/macalester

15 Q&A 1. Why is Macalester College enhancing the Faculty and Staff Retirement Plan? Macalester College is committed to providing you with competitive retirement benefits and recently conducted a review of the retirement plan. The resulting enhancements are intended to give you the investments, services and tools you need to pursue your retirement savings goals. 2. 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, 7 a.m. to 7 p.m. (CT). You can also schedule online at TIAA.org/schedulenow. 3. 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 one hour. 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. 4. 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. 5. Will I pay any fees to invest in the Faculty and Staff Retirement Plan? All investment options have expenses and other fees that can be found by entering the investment s ticker symbol into the search feature at TIAA.org. Some investment options may also have redemption and other fees. See page 3 for more details. 6. 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. 7. 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/contractcomparison or contact TIAA at What are contractual, voluntary and redemption fees? Contractual and Voluntary fees refer to expense waivers. Expense waivers represent the amount the fund company waives or assumes in order to keep the fund s actual (net) expenses low. Expense waivers may be voluntary or contractual, and can be set to expire at a particular date or timeframe. Redemption fees are sales charges or commissions paid when an individual sells an investment, such as a mutual fund or annuity. It s done to discourage withdrawals. A redemption fee may also be known as an exit fee, market timing fee, or short-term trading fee. It is typically instituted within a specified timeframe. 1 Guarantees are based on the claims-paying ability of the issuing company. Questions? Call or visit TIAA.org/macalester 13

16 Accessing your account Not sure where to begin? Let us help you take the next step! Online Phone In person Manage your account online by going to TIAA.org/macalester and selecting Log In. The new investment menu will be available November 27, 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. Vanguard plan participants will have access to their new TIAA account starting November 28, If you have any questions or would like assistance selecting your new investment options, call TIAA at , weekdays, 7 a.m. to 9 p.m., and Saturday, 8 a.m. to 5 p.m. (CT). Schedule a one-on-one advice session by calling TIAA at , weekdays, 7 a.m. to 7 p.m. (CT) or visit TIAA.org/schedulenow. There is no additional cost to you for this service. 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/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 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 _ (10/18)