FUTURE. to work for YOU

Transcription

1 Your Guide for the Transition to Fidelity Putting your FUTURE to work for YOU California State University Tax Sheltered Annuity (TSA) Program Important notice regarding your transition to Fidelity: Participant accounts with the TSA Program s five legacy recordkeepers (MetLife, TIAA, VALIC, Voya, or Fidelity) will be transferred to the active investment lineup with Fidelity. To facilitate the transfer, a brief Blackout Period will take place. If you have a mutual fund account balance at any of the Program s five legacy recordkeepers, you will not be able to request an exchange, loan or a withdrawal from your active Fidelity account during the blackout period. Any scheduled payroll contributions will continue to be deducted from your paycheck during the blackout period. Please see inside for more details.

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3 Table of Contents Page CSU TSA PROGRAM OVERVIEW 4 INVESTMENT OPTIONS MAPPING TO FIDELITY 5 7 WHAT S CHANGING WITH CSU TSA PROGRAM? 8 WHAT S NOT CHANGING? 9 KEY ACTION(S) TSA PARTICIPANTS SHOULD TAKE 10 CURRENT TSA PROGRAM INVESTMENT OPTIONS 11 FIDELITY SELF-DIRECTED BROKERAGE OPTION 12 TRANSITION RECAP & HIGHLIGHTS PROGRAM HIGHLIGHTS FIDELITY RESOURCES AND ACTION STEPS 17 Need help? Call Fidelity at or go to for a schedule of when a Fidelity representative will be visiting your campus. 3

4 GET READY FOR THE CHANGES AHEAD n n n Mutual fund account balances held at the Program s five legacy recordkeepers (MetLife, TIAA, VALIC, Voya, or Fidelity) will be liquidated and transferred to the Vanguard Target Retirement Date Fund at Fidelity that most closely aligns with the year you will reach age 65. A list of investment options that are mapping to Fidelity by recordkeeper is provided on pages 5 7. Any existing account balances held in an annuity contract with MetLife, TIAA, VALIC, and Voya will not be affected by this transaction unless you request the assets to be transferred. If you have a balance in the Voya Stabilizer at Fidelity, your balance will be transferred in kind to Fidelity. A list of investment options that are not mapping to Fidelity by recordkeeper is provided on pages 5 7. For those participants who want to choose how their legacy mutual fund account balances will transition to the active investment lineup at Fidelity, an Early Choice window will be open from April 23, 2018, through May 17, Please see page 10 for more details. Need help? Call Fidelity at or go to for more information. Please carefully review the information contained in this transition guide for key dates, information on the investment lineup, and any actions you might need to take. CSU TSA PROGRAM OVERVIEW In 2016, CSU announced a number of enhancements to the TSA Program, including the selection of Fidelity Investments as the Program s sole recordkeeper and the establishment of a new streamlined investment lineup. At that time, all future contributions were directed to Fidelity; however, existing account balances held at the Program s five legacy recordkeepers (Fidelity, MetLife, TIAA, VALIC, and Voya) remained in those legacy accounts. The next phase of the Program s strategy is to transfer legacy mutual fund account balances held by the Program s five legacy recordkeepers to the active investment lineup at Fidelity. You will have the opportunity to choose how your legacy mutual fund account balances will transfer to the active investment lineup at Fidelity during an Early Choice window; otherwise, your balances will be transferred into a Vanguard Target Retirement investment option at Fidelity, based on the date closest to when you will turn age 65. 4

5 INVESTMENT OPTIONS MAPPING TO FIDELITY Please review the charts below to determine which investment options will be mapped to the active investment lineup at Fidelity. MetLife American Funds 2010 Target Date Retirement Fund Class R-3 American Funds 2015 Target Date Retirement Fund Class R-3 American Funds 2020 Target Date Retirement Fund Class R-3 American Funds 2025 Target Date Retirement Fund Class R-3 American Funds 2030 Target Date Retirement Fund Class R-3 American Funds 2035 Target Date Retirement Fund Class R-3 Investment Options Mapping to Fidelity Columbia Large Cap Index Fund Class A State Street Instl US Government Money Market Admin PIMCO Total Return Fund Administrative Class PIMCO Real Return Fund Administrative Class American Beacon Large Cap Value Fund Investor Class Oppenheimer Main Street All Cap Fund Class Y American Funds 2040 Target Date Retirement Fund Class R-3 American Funds The Growth Fund of America Class R-3 American Funds 2045 Target Date Retirement Fund Class R-3 American Funds 2050 Target Date Retirement Fund Class R-3 American Funds 2055 Target Date Retirement Fund Class R-3 Janus Henderson Balanced Fund Class T TIAA-CREF Institutional Mid-Cap Value - Retirement Columbia Acorn Fund Class A Royce Opportunity Fund Investment Class Fidelity Advisor Small Cap Fund - Class I Vanguard Long-Term Bond Index Fund - Investor Shares American Funds EuroPacific Growth Fund Class R-3 Strategic Value Annuity Investment Options NOT mapping to Fidelity 5

6 INVESTMENT OPTIONS MAPPING TO FIDELITY (continued) TIAA Investment Options Mapping to Fidelity TIAA-CREF Lifecycle Income Fund - Retirement TIAA-CREF Small-Cap Blend Index Fund - Retirement TIAA-CREF Lifecycle 2010 Fund - Retirement PIMCO Total Return Fund Institutional Class TIAA-CREF Lifecycle 2015 Fund - Retirement Eaton Vance Large-Cap Value Fund Class I TIAA-CREF Lifecycle 2020 Fund - Retirement American Funds The Growth Fund of America Class R-4 TIAA-CREF Lifecycle 2025 Fund - Retirement T. Rowe Price Capital Appreciation Fund TIAA-CREF Lifecycle 2030 Fund - Retirement Nuveen Mid Cap Value Fund Class I TIAA-CREF Lifecycle 2035 Fund - Retirement Victory Munder Mid-Cap Core Growth Fund Class Y TIAA-CREF Lifecycle 2040 Fund - Retirement Columbia Small Cap Value Fund I Institutional Class TIAA-CREF Lifecycle 2045 Fund - Retirement Wells Fargo Emerging Growth Fund - Class A TIAA-CREF Lifecycle 2050 Fund - Retirement American Funds EuroPacific Growth Fund Class R-4 TIAA-CREF Lifecycle 2055 Fund - Retirement Lazard Emerging Markets Equity Portfolio Open Shares Investment Options NOT mapping to Fidelity CREF Social Choice Account - R2 CREF Inflation Linked Bond Account - R2 CREF Equity Index Account - R2 CREF Growth Account - R2 CREF Money Market Account - R2 CREF Stock Account - R2 TIAA Traditional (RA) CREF Global Equities Account - R2 TIAA Traditional (SRA/GSRA) TIAA Real Estate Account - R2 CREF Bond Market Account - R2 VOYA Investment Options Mapping to Fidelity Voya Solution Income Portfolio - Service Class Columbia Diversified Equity Income Fund - Class K Shares Voya Solution 2025 Portfolio - Service Class American Funds Fundamental Investors Class R-4 Voya Solution 2035 Portfolio - Service Class Fidelity VIP Contrafund Portfolio - Initial Class Voya Solution 2045 Portfolio - Service Class Franklin Small Cap Value VIP Fund - Class 2 Voya Solution 2055 Portfolio - Service Class Voya Small Company Portfolio - Class I VY T. Rowe Price Capital Appreciation Portfolio - Service Voya Mid Cap Opportunities Portfolio - Class I Voya U.S. Stock Index Portfolio - Institutional Class Wanger USA Voya Government Money Market Portfolio - Class I American Funds EuroPacific Growth Fund Class R-4 Voya Intermediate Bond Portfolio - Class I VY Clarion Real Estate Portfolio - Service Class PIMCO VIT Real Return Portfolio - Administrative Class Voya Fixed Plus Account II Investment Options NOT mapping to Fidelity Voya Fixed Plus Account III 6

7 INVESTMENT OPTIONS MAPPING TO FIDELITY (continued) VALIC Investment Options Mapping to Fidelity T. Rowe Price Retirement Balanced Fund Class R Dreyfus Mid Cap Index Fund Investor Shares T. Rowe Price Retirement 2010 Fund Class R Dreyfus Small Cap Stock Index Fund Investor Shares T. Rowe Price Retirement 2015 Fund Class R American Century U.S. Government Money Market - Inv. T. Rowe Price Retirement 2020 Fund Class R PIMCO Total Return Fund Administrative Class T. Rowe Price Retirement 2025 Fund Class R American Century Inflation Adjusted Bond Fund Investor Class T. Rowe Price Retirement 2030 Fund Class R AllianzGI NFJ Dividend Value Fund Class R T. Rowe Price Retirement 2035 Fund Class R Davis New York Venture Fund Class R T. Rowe Price Retirement 2040 Fund Class R American Funds The Growth Fund of America Class R-3 T. Rowe Price Retirement 2045 Fund Class R Artisan Mid Cap Value - Fund Investor Class T. Rowe Price Retirement 2050 Fund Class R JP Morgan Mid Cap Growth Fund Class A T. Rowe Price Retirement 2055 Fund Class R AllianzGI NFJ Small-Cap Value Fund Class A American Funds American Balanced Fund Class R-3 JP Morgan Small Cap Growth Fund Class A Vanguard Long-Term Bond Index Fund - Investor Class American Funds EuroPacific Growth Fund Class R-3 Dreyfus S&P 500 Index Fund Investor Shares Virtus Duff & Phelps Real Estate Securities Fund Class A Fixed Interest Option Investment Options NOT mapping to Fidelity Fidelity Legacy Account Legacy Fidelity Accounts All investment options in Legacy Fidelity Accounts will be mapped to the active investment lineup at Fidelity. The Voya Stabilizer fund will map to the same investment at Fidelity (called a reregistration, or in-kind transfer) and will remain invested in the market during the transition. The timing of the plan changes and transition period, including any asset reallocations, described within this transition guide depends on a variety of factors, which may include the timing and accuracy of the transfer of data, receipt of instructions, and receipt of assets. Changes in any of these factors may result in changes to the timing of the delivery of services, the transition period, and/or the dates on which, and thus the prices at which, assets in your account are sold and/or reinvested. 7

8 WHAT S CHANGING WITH THE CSU TSA PROGRAM? 1. Legacy mutual fund account balances held at the five legacy recordkeepers will be transitioned to Fidelity Investments: a. Effective May 23, 2018, all legacy mutual fund account balances held at MetLife, VALIC, Voya, and Fidelity will be directed to the active investment lineup at Fidelity Investments. b. Effective May 24, 2018, all legacy mutual fund account balances held at TIAA will be directed to the active investment lineup at Fidelity Investments. c. Any existing account balances held in an annuity contract with MetLife, TIAA, VALIC, or Voya will remain at the legacy recordkeeper unless you request the assets to be transferred. If you have a balance in the Voya Stabilizer at Fidelity, your balance will be transferred in kind to Fidelity. A list of investment options that are not mapping to Fidelity by recordkeeper is provided on pages An Early Choice Window for impacted employees: a. From April 23, 2018, through May 17, 2018, an Early Choice window will be made available for those participants who want to choose how their legacy mutual fund account balances held at the Program s five legacy recordkeepers will transition to the active investment lineup at Fidelity. You can call the Fidelity Retirement Service Center at or log on to NetBenefits at b. The selections you make during the Early Choice window will only apply to your mutual fund account balances being transitioned from the five legacy recordkeepers to the active investment lineup at Fidelity. c. If you do not make an investment election during this time, your legacy mutual fund account balances held at the Program s five legacy recordkeepers will be liquidated and transferred to the Program s default investment option, the Vanguard Target Date Retirement Fund at Fidelity that most closely aligns with the year you will reach age 65. d. The TSA Program offers Fidelity BrokerageLink, which gives you access to additional investment choices for your retirement savings beyond those investment options available in the active investment lineup. It is your responsibility to ensure the investments you select are suitable for your situation, including your goals, time horizon, and risk tolerance. Contact Fidelity for a fact sheet and commission schedule for applicable fees and risks. 3. Blackout Period: a. To ensure that all information regarding your legacy account is transferred from your legacy recordkeeper to Fidelity, there will be a period of time when you will be unable to perform certain actions. Additional information can be located on page Beneficiary Information: a. Beneficiary information currently on file with the five legacy recordkeepers will not transfer to Fidelity. You will need to log on to Fidelity s NetBenefits at or call to designate your beneficiaries. 5. Systematic Transactions: a. If you have established a systematic transaction (Minimum Distribution Option, Transfer Payout Annuity, Automatic Rebalancing, Systematic Withdrawal, etc.) with any of the Program s legacy recordkeepers, please contact your legacy recordkeeper to provide updated transfer or distribution instructions based upon the options available to you by May 11,

9 WHAT S NOT CHANGING? 1. Eligibility Rules: a. Most employees are eligible to participate in the TSA Program, including rehired annuitants (employees who retire and return to work for a limited duration). 2. Enrollment: a. The cut-off date for participants to make changes to their contributions is the 5th day of each calendar month (unless the 5th day is a Saturday or Sunday) for changes to be effective the next pay period. b. Lump sum (i.e., CTO, vacation pay, settlement pay, etc.) TSA Program deferrals will continue to be processed by the campus Benefits and/or Payroll office. 3. Vesting: a. Participants are always 100% vested in any contributions they make to the TSA Program. 4. Withdrawals: a. Participants are generally permitted to take a withdrawal from their TSA account when they reach age 59½, terminate employment, retire, become permanently disabled, or have a financial hardship as defined by the Internal Revenue Service (IRS). 5. Annuity Account Balances: a. Any existing account balances held in an annuity contract with MetLife, TIAA, VALIC and Voya will remain at the legacy recordkeeper unless you request the assets to be transferred. A list of investment options that are not mapping to Fidelity by recordkeeper is provided on pages Planning & Support: a. Fidelity Retirement Planners are knowledgeable professionals equipped with the tools and resources you need to help you plan for a solid financial future beyond your years with CSU. b. Retirement Planners will continue to visit the campuses for one-on-one consultations. Go to or call to schedule an appointment. 9

10 KEY ACTIONS TSA PARTICIPANTS SHOULD TAKE Listed below are four steps each participant should take to prepare for the changes ahead. 1. Review your Current Investments: a. As a result of these changes, you may want to evaluate the appropriateness of your current investment allocations and determine how your financial strategy for retirement may be impacted. b. Before you make any investment decisions, you should become familiar with the Program s various investment options. Additional information can be found in the Investment Options section located on page Make an Investment Selection during the Early Choice Window: a. From April 23, 2018, through May 17, 2018, an Early Choice window will be made available for those participants who want to choose how their legacy mutual fund account balances held at the Program s five legacy recordkeepers will transition to the active investment lineup at Fidelity. b. Once you have determined your investments, you may log on to NetBenefits at calstate or call Fidelity at to make your selections. c. If you do not make an investment election during this time, your legacy mutual fund account balances held at the Program s five legacy recordkeepers will be liquidated and transferred to the Vanguard Target Date Retirement Fund at Fidelity that most closely aligns with the year you will reach age Update your Beneficiaries: a. Beneficiary information currently on file with the five legacy recordkeepers will not transfer to Fidelity. It s important to update your beneficiary information once the transition is complete. b. You can designate your beneficiary on Fidelity s NetBenefits at or call Fidelity at for help. 4. Update your Systematic Transactions: a. If you have established a systematic transaction (Minimum Distribution Option, Transfer Payout Annuity, Automatic Rebalancing, Systematic Withdrawal, etc.) with any of the Program s legacy recordkeepers, please contact your legacy recordkeeper to provide updated transfer or distribution instructions based upon the options available to you by May 11,

11 CURRENT TSA PROGRAM INVESTMENT OPTIONS Current Investment Option Lineup Before investing in any mutual fund, consider the investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully. Before making your investment decisions, it is important that you become familiar with the various investment options in the TSA Program. Please consider all information before choosing your investments. For more detailed information regarding these investments, please refer to the Investment Options Guide included with this transition guide. Investment Options Ticker Tier 1: Target Date Retirement Funds Tier 2: Index and Actively Managed Funds Vanguard Target Retirement Income Fund Institutional Shares Vanguard Target Retirement 2015 Fund Institutional Shares Vanguard Target Retirement 2020 Fund Institutional Shares Vanguard Target Retirement 2025 Fund Institutional Shares Vanguard Target Retirement 2030 Fund Institutional Shares Vanguard Target Retirement 2035 Fund Institutional Shares Vanguard Target Retirement 2040 Fund Institutional Shares Vanguard Target Retirement 2045 Fund Institutional Shares Vanguard Target Retirement 2050 Fund Institutional Shares Vanguard Target Retirement 2055 Fund Institutional Shares Vanguard Target Retirement 2060 Fund Institutional Shares Vanguard Target Retirement 2065 Fund Institutional Shares Vanguard Total Bond Market Index Fund Admiral Shares Vanguard Institutional Index Fund Institutional Shares Vanguard Extended Market Index Fund Admiral Shares Vanguard Total International Bond Index Fund Admiral TM Shares Vanguard Total International Stock Index Fund Admiral Shares VITRX VITVX VITWX VRIVX VTTWX VITFX VIRSX VITLX VTRLX VIVLX VTTSX VILVX VBTLX VINIX VEXAX VTABX VTIAX BlackRock Total Return Fund Class K MPHQX Causeway International Value Fund Class Institutional CIVIX Cohen & Steers Institutional Realty Shares CSRIX DFA Inflation-Protected Securities Portfolio Institutional Class DIPSX DFA U.S. Targeted Value Portfolio Institutional Class DFFVX Dodge & Cox Global Stock Fund DODWX Harding Loevner International Equity Portfolio Institutional Class HLMIX PRIMECAP Odyssey Growth Fund POGRX Hartford Schroder Emerging Markets Equity Fund Class I SEMNX T. Rowe Price Institutional Large Cap Value Fund TILCX Touchstone International Small Cap Fund Institutional TNSIX Vanguard Federal Money Market Fund Investor Shares VMFXX Voya Stabilizer N/A William Blair Small-Mid Cap Growth Fund Class I WSMDX Tier 3: Self-Directed Option Fidelity BrokerageLink BLNK 11

12 CURRENT TSA PROGRAM INVESTMENT OPTIONS (continued) Default Investment Option If you do not make an investment election during the Early Choice window, your legacy mutual fund account balances held at the Program s five legacy recordkeepers will be liquidated and transferred into the Vanguard Target Date Retirement Fund at Fidelity that most closely aligns with the year you will reach age 65. Target Date Funds are an asset mix of stocks, bonds, and other investments that automatically becomes more conservative as the Fund approaches its target retirement date and beyond. Principal invested is not guaranteed. Your default investment option will be determined by your year of birth. Please use the guidelines in the table below to determine in which target date fund your eligible account balances will be invested. If your year of birth is: Then your default fund will be: 1947 and before Vanguard Target Retirement Income Institutional Shares Vanguard Target Retirement 2015 Fund Institutional Shares Vanguard Target Retirement 2020 Fund Institutional Shares Vanguard Target Retirement 2025 Fund Institutional Shares Vanguard Target Retirement 2030 Fund Institutional Shares Vanguard Target Retirement 2035 Fund Institutional Shares Vanguard Target Retirement 2040 Fund Institutional Shares Vanguard Target Retirement 2045 Fund Institutional Shares Vanguard Target Retirement 2050 Fund Institutional Shares Vanguard Target Retirement 2055 Fund Institutional Shares Vanguard Target Retirement 2060 Fund Institutional Shares 1998 or later Vanguard Target Retirement 2065 Fund Institutional Shares Timeline provided by the Plan Sponsor. Fidelity Self-Directed Brokerage Option Fidelity offers a BrokerageLink option, which gives participants access to additional mutual funds for retirement savings beyond those investment options available in the current investment lineup. It will be the responsibility of participants to ensure the investments they select are suitable for their situation, including their goals, time horizon, and risk tolerance. Fidelity can provide a fact sheet and commission schedule for applicable fees and risks. The plan sponsor neither evaluates nor monitors the investments available through BrokerageLink. 12

13 TRANSITION RECAP & HIGHLIGHTS Blackout Period To ensure that all information regarding your legacy account is transferred accurately from your legacy recordkeeper to Fidelity, there will be a period of time when you will be unable to perform certain actions. This time, during which you will be unable to exercise your rights otherwise available under the Program, is called a blackout period. If you have a mutual fund account balance that is transferring from any of the Program s five legacy recordkeepers (MetLife, TIAA, VALIC, Voya, or Fidelity), you will not be able to request an exchange, loan or a withdrawal from your active Fidelity account during the blackout period. However, the blackout period will not impact your scheduled payroll contributions and/or investment elections. The Blackout Period for active Fidelity accounts will begin at 1:00 p.m. Pacific time on May 22, 2018, and is expected to end the week of June 10, Please review the chart below to understand how your account may be affected during the blackout period. If you have any questions concerning this blackout, you should contact the recordkeeper directly. KEY DATES ACTION STEPS TIAA LEGACY ACCOUNTS May 14, 2018, at 1:00 p.m. Pacific time METLIFE LEGACY ACCOUNTS The blackout period for legacy TIAA accounts will begin at 1:00 p.m. Pacific time on May 14, 2018, and is expected to end the week of June 10, Account transactions will not be available during this time. Please return all necessary paperwork to TIAA to process a loan or distribution before the blackout period begins. Please allow enough time to request, receive, complete, and return the paperwork to TIAA before this deadline. May 15, 2018, at 1:00 p.m. Pacific time The blackout period for legacy MetLife accounts will begin at 1:00 p.m. Pacific time on May 15, 2018, and is expected to end the week of June 3, Account transactions will not be available during this time. Please return all necessary paperwork to MetLife to process a distribution before the blackout period begins. Please allow enough time to request, receive, complete, and return the paperwork to MetLife before this deadline. VALIC LEGACY ACCOUNTS May 15, 2018, at 1:00 p.m. Pacific time VOYA LEGACY ACCOUNTS May 15, 2018, at 1:00 p.m. Pacific time FIDELITY LEGACY ACCOUNTS The blackout period for legacy VALIC accounts will begin at 1:00 p.m. Pacific time on May 15, 2018, and is expected to end the week of June 3, Account transactions will not be available during this time. Please return all necessary paperwork to VALIC to process a loan or distribution before the blackout period begins. Please allow enough time to request, receive, complete, and return the paperwork to VALIC by May 8, The blackout period for legacy Voya accounts will begin at 1:00 p.m. Pacific time on May 15, 2018, and is expected to end the week of June 3, Account transactions will not be available during this time. Please return all necessary paperwork to Voya to process a distribution before the blackout period begins. Please allow enough time to request, receive, complete, and return the paperwork to Voya before this deadline. May 22, 2018, at 1:00 p.m. Pacific time The blackout period for legacy Fidelity accounts will begin at 1:00 p.m. Pacific time on May 22, 2018, and is expected to end the week of June 3, Account transactions will not be available during this time. Please return all necessary paperwork to Fidelity to make exchanges and to process a loan or distribution before the blackout period begins. Please allow enough time to request, receive, complete, and return the paperwork to Fidelity before this deadline. 13

14 TRANSITION RECAP & HIGHLIGHTS (continued) Key Date April 23, 2018, through May 17, 2018 Plan Activity Early Choice window will open for investment selections 1) Set up your NetBenefits account and preferences If you have a username and password for your current Fidelity account, you can use that information to access your retirement account. If you do not have a Fidelity username and password, log on at netbenefits.com/calstate, click Register at the top of the page, and follow the step-by-step instructions to set up your account. 2) Review Program updates and investment option information Review Program updates and investment option information, including investment risk, strategy, and objective, or request a prospectus. For your long-term retirement security, you should give careful consideration to the importance of a well-balanced and diversified investment portfolio, taking into account all your assets, income, and investments. 3) Make your Early Choice investment selections An Early Choice window will be made available for those participants who want to choose how their legacy mutual fund account balances held at the Program s five legacy recordkeepers will transition to the active investment lineup at Fidelity. You can call the Fidelity Retirement Service Center at or log on to NetBenefits at 4) Default Investment Option If you do not make an investment election during this time, your legacy mutual fund account balances held at the Program s five legacy recordkeepers will be liquidated and transferred to the Vanguard Target Date Retirement Fund at Fidelity that most closely aligns with the year you will reach age 65. Review the Default Investment Option section to learn more. 5) Designate your beneficiaries Beneficiary information currently on file with other vendors will not transfer to Fidelity. Now is a great time to log on to Fidelity NetBenefits at netbenefits.com/calstate to confirm your beneficiary designations or you can call Fidelity at for assistance. July 2018 Quarterly statements will be available online from Fidelity. A paper statement will not be mailed to your home, unless you change your mail preferences and request that statements be mailed to your home address. Call Fidelity at or log on to NetBenefits at to update your preferences. Simply click Profile from the NetBenefits home page, then Mail Preferences. 14 The timing of the plan changes and transition period, including any asset reallocations, described within this transition guide depends on a variety of factors, which may include the timing and accuracy of the transfer of data, receipt of instructions, and receipt of assets. Changes in any of these factors may result in changes to the timing of the delivery of services, the transition period, and/or the dates on which, and thus the prices at which, assets in your account are sold and/or reinvested.

15 PROGRAM HIGHLIGHTS Here are some Program highlights. Current Investment Lineup Loans NetBenefits Website www. netbenefits.com/ calstate Fees and Expenses You can easily create an investment allocation to help you meet your specific savings goals and investing needs. Your investment options will include: Tier 1: Vanguard Target Date Retirement Funds are a single fund solution in which the investment mix of stocks and bonds automatically becomes more conservative as the target retirement date approaches. Tier 2: The Index and Actively Managed Fund Tier provides a range of mutual funds across several asset classes, such as fixed, short-term, domestic, and international equity investments. Tier 3: With Fidelity BrokerageLink you will have the additional flexibility of an individual brokerage account and expanded mutual fund investment choices. The CSU neither evaluates nor monitors the investments available through BrokerageLink. Participants can have only one outstanding loan at any time. A dedicated website for CSU is available to provide you easy access to enroll, access your TSA account, and view Program details. When you log on to NetBenefits, you will have access to manage your account, make decisions on your investment choices, and find interactive tools and calculators to help you better prepare to meet your retirement savings goals. NetBenefits will be available beginning April 23, 2018, through May 17, 2018, to make investment selections during the Early Choice window. With the single recordkeeping platform and current investment lineup, the expenses and fees associated with investing in the Program are intended to be considerably lower for participants. If you have an account in the Program, it may be subject to the following types of fees and expenses: Investment option fees Program administrative fees and expenses Individual fees and expenses Investment Option Fees Investment option fees reflect an investment option s total annual operating expenses and include management and other fees. They are often the largest component of retirement plan costs and are paid by all shareholders of the investment option. Typically, investment option fees are reflected as a percentage of assets invested in the option and often are referred to as an expense ratio. You may multiply the expense ratio by your balance in the investment option to estimate the annual expenses associated with your holdings. Investment option fees are deducted from an investment option s assets, thereby reducing its investment return. Fee levels can vary widely among investment options, depending in part on the type of investment option, its management (including whether it is active or passive), and the risks and complexities of the option s strategy. Program Administrative Fees and Expenses Program administrative fees may include recordkeeping, legal, accounting, trustee, and other administrative fees and expenses associated with maintaining the Program. There will be a flat quarterly administrative fee for anyone with a balance in the current investment option lineup, regardless of the size of your account balance at Fidelity. This charge will appear on your quarterly statement. Administration Fee $11.50 per quarter or $46 annually Individual Fees and Expenses Individual fees and expenses include those associated with a service or transaction you may select. If you have an account in the Program at Fidelity, and you select or execute the following service(s) or transaction(s), the fee(s) outlined below may be deducted from your account. Loan Setup Fee $75 per loan Express (overnight) delivery $25 per transaction 15

16 PROGRAM HIGHLIGHTS (continued) Vesting Online Beneficiary Designations Withdrawals Workplace Planning and Support Investor Centers You are always 100% vested in any contributions you make to the TSA Program. Beneficiary information currently on file with other vendors will not transfer to Fidelity. You can review and confirm your beneficiaries on Fidelity NetBenefits at calstate or call Fidelity at for help or to request a beneficiary form. With Fidelity s Online Beneficiaries Service, you can review and confirm your beneficiaries, receive instant online confirmation, and check your beneficiary information virtually any time. You are generally permitted to take a withdrawal from your TSA account when you reach age 59½, terminate your employment, retire, become permanently disabled, or have a severe financial hardship, as defined by the IRS. Fidelity Representatives are knowledgeable professionals equipped with detailed information about the TSA Program. They have the tools to provide advice on investing that will get you on your way. Please go to to see a schedule of upcoming events, or if you would like to make an appointment to meet with a representative, please call Fidelity has more than 190 Investor Centers across the country. The professionals in the Investor Centers are highly trained to provide you with the latest retirement planning insights and investment help. Investor Center products and services are offered beyond your employersponsored retirement plan, at no additional cost. You can find an Investor Center near you online at fidelity.com/branchlocator. 16

17 ACTION STEPS It all starts when you log on to Fidelity NetBenefits at Fidelity s NetBenefits website is designed so you can quickly and easily set up, monitor, and manage your retirement savings account. q Log on to Fidelity NetBenefits: If you have a username and password for other accounts at Fidelity, you can use that information to access your retirement account. If you do not have a Fidelity username and password, log on to Fidelity NetBenefits at calstate, click Register, and follow the step-by-step instructions to set up your account. q When you log on to Fidelity NetBenefits, you can do the following: Add your preferred address and select edelivery. Enter or update your beneficiary information. Access information about each investment option available in the Program, including investment risk, strategy, and objective. Review the fact sheet or prospectus, if available. q Decide how you want to invest and provide investment selections: From April 23, 2018, through May 17, 2018, an Early Choice window will be made available for those participants who want to choose how their legacy mutual fund account balances held at the Program s five legacy recordkeepers will transition to the active investment lineup at Fidelity. If you do not make an investment election during this time, your legacy mutual fund account balances held at the Program s five legacy recordkeepers will be liquidated and transferred to the Vanguard Target Date Retirement Fund at Fidelity that most closely aligns with the year you will reach age 65. Review the Default Investment Option section located on page 12 to learn more. For descriptions of each investment option available in the Program, refer to the enclosed Investment Options Guide. Please consider all investment information before choosing your investments. q Go mobile. Download the NetBenefits mobile app. Download the NetBenefits mobile app from the App Store TM or Google Play TM Store and get access to all your Fidelity workplace accounts anywhere, anytime. NetBenefits for ipad THE CALIFORNIA STATE UNIVERSITY Access your account information. anytime, anywhere. Swipe to begin. NetBenefits smartphone app Screenshots are for illustrative purposes only. *System availability and response times may be subject to market conditions. Apple, the Apple logo, ipad, iphone, and ipod touch are trademarks of Apple Inc., registered in the U.S. and other countries. App Store is a service mark of Apple Inc. Android and Google Play are trademarks of Google Inc. 17

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20 Aon Hewitt, TIAA CREF, MetLife, Voya, and VALIC are not affiliated with Fidelity Brokerage Services, member NYSE, SIPC or its affiliates. Aon Hewitt, TIAA CREF, MetLife, Voya, and VALIC are solely responsible for the information and services they provide. Fidelity disclaims any liability arising from your use of this information. Investing involves risk, including risk of loss. This document provides only a summary of the main features of the California State University Tax Sheltered Annuity, and the TSA Plan document will govern in the event of any discrepancies. Fidelity Brokerage Services LLC, Member NYSE, SIPC 900 Salem Street, Smithfield, RI FMR LLC. All rights reserved