Announcing Changes to Wesleyan University s 403(b)(7) Retirement Plan

Transcription

1 Announcing Changes to Wesleyan University s 403(b)(7) Retirement Plan Fidelity Investments and TIAA

2 Calendar of Events 21 Whether your retirement is right around the corner or years away, continue to closely For More Information 22 monitor your overall financial plan. If you have any questions regarding the information in this guide or your retirement plan, contact your investment provider or visit their website. Please see page 22 for the contact information of your investment provider. A special note for Fidelity and or TIAA former employees, retired employees, alternate payees, and plan beneficiaries with account balances in the Plan: Some of the information enclosed may not apply to you. However, your account balance may be affected by the change to the new investment lineup, so please read this material carefully. Table of Contents An important note for participants that hold assets with TIAA and have foreign addresses non United States addresses: If your current mailing address is outside the United States, the information about the investment option changes and TIAA services in this brochure may not apply and/or may not be available to you. Shortly, TIAA will send you a mailing with more information. Please contact TIAA for assistance: International number: , U.S. number: Introduction 3 What Is Changing 4 What Is Not Changing 4 How This Transition Affects Assets at Each Investment Provider New Investment Options at Fidelity 6 Understanding Plan Fees in your Fidelity Account 9 Plan Structure Change 9 New Investment Options at TIAA 10 Understanding Plan Fees in your TIAA Account 13 TIAA Self-Directed Brokerage Option 16 Target Date Funds Lifecycle Age Chart For Both Fidelity and TIAA Frequently Asked Questions

3 Saving for retirement is about to get easier with Wesleyan University's 403(b)(7) Retirement Plan. Wesleyan University is pleased to introduce a new investment lineup to help faculty and staff members build a diversified retirement savings portfolio in Wesleyan University's 403(b)(7) Retirement Plan (the Plan). Wesleyan University is committed to periodically reviewing the Plan to make sure it continues to help you meet your retirement and financial goals. This review was part of an extensive project undertaken by the Wesleyan Retirement Plan Investment Committee, which is a group comprised of representatives of Wesleyan University who exercise fiduciary oversight of the Plan. The University has engaged Fiduciary Investment Advisors (FIA) to assist the committee in a thorough review of the Plan, with the goal of reducing administrative fees and offering an updated menu of investment funds. This review included an assessment of our current investment providers and an analysis of the current choices for investment and administrative fees. As a result of a recent review, Wesleyan University has decided to make the following changes to Wesleyan University's 403(b)(7) Retirement Plan's investment lineup. This Transition Guide is a resource to help you understand the new plan structure and help you make the best investment decisions for your future. Understand the new investment lineup and how your current investments may be affected during the transition. Carefully review the actions you may need to take and the key dates. 3

4 What Is Changing A New Investment Lineup A new suite of target date retirement funds offered at both Fidelity and TIAA. 20 new investment options with Fidelity Investments and 18 new investment options at TIAA, along with prudently selected investments options in the current menus selected by the Wesleyan Retirement Plan Investment Committee. Lower administrative costs. Lower-cost share classes for some of the funds when available. Self-Directed Brokerage Account Option* A self-directed brokerage account, providing access to thousands of additional mutual fund options, will be added to the TIAA investment menu, to be consistent with the self-directed brokerage account that has been available at Fidelity. Effective October 1, 2018, any Fidelity BrokerageLink assets that were previously directed to be exchanged into the current default fund, the Fidelity Government Money Market, will now be directed to the new default fund, the Vanguard Federal Money Market Fund Investor Shares.** What Is Not Changing Fidelity and TIAA will continue to be approved investment providers. The plan design and rules of our retirement plan remain unchanged. Eligibility, vesting, and employer contributions all remain the same. A self-directed brokerage account will continue to be available as an option at Fidelity Investments. 4 * BrokerageLink includes investments beyond those in your plan s lineup. The plan fiduciary neither evaluates nor monitors the investments available through BrokerageLink. It is your responsibility to ensure that the investments you select are suitable for your situation, including your goals, time horizon, and risk tolerance. See the fact sheet and commission schedule for applicable fees and risks. **You could lose money by investing in a money market fund. Although the fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The fund's sponsor has no legal obligation to provide financial support to money market funds and you should not expect that the sponsor will provide financial support to the fund at any time. Additional risk information for this product may be found in the prospectus or other product materials, if available.

5 How This Transition Affects Assets at Each Investment Provider Fidelity and TIAA Future Contributions and Existing Balances Beginning October 1, 2018, you may direct your future contributions and existing balances to the funds in the new investment menu. Simply log in to your online account or call your investment provider to make your changes. If you don t take action, your future contributions and existing balances in the Plan will transfer to the new investment lineup, according to the Mapping Charts on pages Self-Directed Brokerage Account Mutual funds no longer available in the investment lineup may be available through the self-directed brokerage account through your selected investment provider. However, they may be a different share class. Loan Repayments Outstanding loans will not be affected and payments should continue to be repaid as normal. Outstanding loan repayments will be directed according to your investment elections in the new investment options. No changes will be made to the payment amount, payment date, or other terms of your loan. 5

6 New Investment Options at Fidelity Wesleyan University is pleased to introduce a new investment lineup to help you build a diversified retirement savings portfolio in Wesleyan University s 403(b)(7) Retirement Plan. This new lineup gives you a choice of investments that cover the major asset investment classes: stocks, bonds, and short-term investments. These investment options give you the flexibility to build your own strategy to help meet your needs. Beginning October 1, 2018, the following investment options will be added to the Fidelity investment lineup. Please see the Investment Option Guide for more details. Before investing in any investment option, consider the investment objectives, risks, charges, and expenses. Contact your investment provider for a mutual fund or variable annuity prospectus or, if available, a summary prospectus. Read them carefully. American Funds 2010 Target Date Retirement Fund Class R-6 American Funds 2015 Target Date Retirement Fund Class R-6 American Funds 2020 Target Date Retirement Fund Class R-6 American Funds 2025 Target Date Retirement Fund Class R-6 American Funds 2030 Target Date Retirement Fund Class R-6 American Funds 2035 Target Date Retirement Fund Class R-6 American Funds 2040 Target Date Retirement Fund Class R-6 American Funds 2045 Target Date Retirement Fund Class R-6 American Funds 2050 Target Date Retirement Fund Class R-6 American Funds 2055 Target Date Retirement Fund Class R-6 American Funds 2060 Target Date Retirement Fund Class R-6 American Funds EuroPacific Growth Fund Class R-6 T. Rowe Price Growth Stock Fund I Class Vanguard Extended Market Index Fund Institutional Shares Vanguard Federal Money Market Fund Investor Shares Vanguard Institutional Index Fund Institutional Shares Vanguard Total Bond Market Index Fund Admiral Shares Vanguard Total International Stock Index Fund Institutional Shares Walden Asset Management Fund Western Asset Core Plus Bond Fund Class IS 6

7 Fidelity Investment Options Being Removed *** When the market closes at 4 p.m. Eastern time on October 1, 2018, several investment options offered through Wesleyan University's 403(b)(7) Retirement Plan will no longer be available. As a result, all existing balances and future contributions will be transferred to the new investment options. See the following chart for details. The transfer of balances will appear as an exchange on your account history and quarterly statement. Old Investment Options DFA Inflation-Protected Securities Portfolio Institutional Class Expense Ratio: 0.12% Fidelity Contrafund - Class K Expense Ratio: 0.65% Fidelity Freedom 2005 Fund Class K Expense Ratio: 0.43% Fidelity Freedom 2010 Fund Class K Expense Ratio: 0.46% Fidelity Freedom 2015 Fund Class K Expense Ratio: 0.5% Fidelity Freedom 2020 Fund Class K Expense Ratio: 0.54% Fidelity Freedom 2025 Fund Class K Expense Ratio: 0.57% Fidelity Freedom 2030 Fund Class K Expense Ratio: 0.61% Fidelity Freedom 2035 Fund Class K Expense Ratio: 0.64% Fidelity Freedom 2040 Fund Class K Expense Ratio: 0.65% Fidelity Freedom 2045 Fund Class K Expense Ratio: 0.65% Fidelity Freedom 2050 Fund Class K Expense Ratio: 0.65% Fidelity Freedom 2055 Fund Class K Expense Ratio: 0.65% Fidelity Freedom 2060 Fund Class K Expense Ratio: 0.65% Fidelity Freedom Income Fund Class K Expense Ratio: 0.42% Fidelity 500 Index Fund Premium Class Expense Ratio: 0.035% Fidelity Emerging Markets Index Fund Premium Class Expense Ratio: 0.13% New Investment Options American Funds Target Date Retirement Funds Class R-6 see Target Date Age Chart on page 17 T. Rowe Price Growth Stock Fund I Class Expense Ratio: 0.52% American Funds 2010 Target Date Retirement Fund Class R-6 Expense Ratio: 0.34% American Funds 2010 Target Date Retirement Fund Class R-6 Expense Ratio: 0.34% American Funds 2015 Target Date Retirement Fund Class R-6 Expense Ratio: 0.33% American Funds 2020 Target Date Retirement Fund Class R-6 Expense Ratio: 0.35% American Funds 2025 Target Date Retirement Fund Class R-6 Expense Ratio: 0.37% American Funds 2030 Target Date Retirement Fund Class R-6 Expense Ratio: 0.39% American Funds 2035 Target Date Retirement Fund Class R-6 Expense Ratio: 0.4% American Funds 2040 Target Date Retirement Fund Class R-6 Expense Ratio: 0.41% American Funds 2045 Target Date Retirement Fund Class R-6 Expense Ratio: 0.41% American Funds 2050 Target Date Retirement Fund Class R-6 Expense Ratio: 0.42% American Funds 2055 Target Date Retirement Fund Class R-6 Expense Ratio: 0.42% American Funds 2060 Target Date Retirement Fund Class R-6 Expense Ratio: 0.49% American Funds 2010 Target Date Retirement Fund Class R-6 Expense Ratio: 0.34% Vanguard Institutional Index Fund Institutional Shares Expense Ratio: 0.035% American Funds Target Date Retirement Funds Class R-6 see Target Date Age Chart on page 17 7

8 Old Investment Options Fidelity Extended Market Index Fund Premium Class Expense Ratio: 0.07% Fidelity Global ex U.S. Index Fund Premium Class Expense Ratio: 0.1% Fidelity Government Money Market Fund Expense Ratio: 0.42% Fidelity Intermediate Treasury Bond Index Fund Premium Class Expense Ratio: 0.06% Fidelity Real Estate Index Fund Premium Class Expense Ratio: 0.09% Fidelity U.S. Bond Index Fund Premium Class Expense Ratio: 0.045% Parnassus Endeavor Fund Investor Shares Expense Ratio: 0.92% Wells Fargo Small Company Value Fund Class Inst Expense Ratio: 1.14% New Investment Options Vanguard Extended Market Index Fund Institutional Shares Expense Ratio: 0.06% Vanguard Total International Stock Index Fund Institutional Shares Expense Ratio: 0.09% Vanguard Federal Money Market Fund Investor Shares Expense Ratio: 0.11% American Funds Target Date Retirement Funds Class R-6 see Target Date Age Chart on page 17 American Funds Target Date Retirement Funds Class R-6 see Target Date Age Chart on page 17 Vanguard Total Bond Market Index Fund Admiral Shares Expense Ratio: 0.05% American Funds Target Date Retirement Funds Class R-6 see Target Date Age Chart on page 17 Vanguard Extended Market Index Fund Institutional Shares Expense Ratio: 0.06% Please see the Investment Options Guide for the fund descriptions. *** The dates shown are based on the timing and accuracy of a variety of factors, including the transfer of data, receipt of instructions, and receipt of assets. Changes in any of these factors may result in changes to the dates and timing, including the dates on which, and thus the prices at which, assets in your account are sold and/or reinvested. 8

9 Understanding Plan Fees in Your Fidelity Account Wesleyan University is announcing a change to the Plan s fee structure. The change is intended to reduce the Plan s administrative costs and Wesleyan University believes it will result in a more equitable allocation of the Plan s administrative fees. Beginning October 1, 2018, a quarterly administrative fee will be deducted from all participant accounts to cover the Plan s administrative costs. In addition, a quarterly revenue credit may be allocated to certain participant accounts to offset the cost of plan administration. Plan Administrative Fee Currently, the Plan s costs for administrative services are paid through offsets associated with some or all of the Plan s investment options. Using offsets to pay the Plan s administrative costs is a common approach. Additional administrative fees are not deducted from your account, and these amounts are not reflected on your quarterly account statement. Effective October 1, 2018, Wesleyan University has directed Fidelity to deduct an annual plan administrative fee of 0.12% of eligible assets from your account balance. This amount will be deducted on a quarterly basis which equates to 0.04% of your account balance per quarter. Beginning with your January quarterly statement, the plan administrative fee will be shown as a separate line item labeled recordkeeping fee. In addition, you will see this fee appear under the Transaction History section of your account on Fidelity NetBenefits. Participant Revenue Credit Beginning October 1, 2018, a revenue credit will be allocated to participants who hold investment options based on the chart below. As a result, offsets associated with these funds will no longer be used to pay administrative costs. Any credit allocated to your account will appear on your quarterly benefits statement, and will be invested as your Plan s fiduciary has directed. Although fees and credits may be factors in choosing investment options, it is important to ensure that you take into account several other considerations, such as time horizon, risk tolerance and financial situation, when determining your investment approach and choosing the right investment mix. The following chart is effective October 1, Investment Options Ticker Annual Credit Rate % Walden Asset Management Fund WSBFX 0.25% Plan Structure Change This is to inform you that the Fidelity Investments Section 403(b)(7) Individual Custodial agreement that you entered into with Fidelity Management Trust company when you established your 403(b)(7) Account for contributions from Wesleyan University will be amended into a Fidelity Investments Section 403(b)(7) Group Custodial Account Agreement, effective October 1, This Group Custodial Account Agreement is between Wesleyan University and Fidelity Management Trust Company. This change will enable your employer to enhance the plan in the future by adopting Fidelity technology and services available only to a group custodial account 403(b) plan. 9

10 New Investment Options at TIAA The investment options in your Plan give you a choice of investments that cover the major asset investment classes: stocks, bonds, and short-term investments. These investment options give you the flexibility to build your own strategy to help meet your needs. Beginning October 1, 2018, the following investment options will be added to the TIAA investment lineup. Please see the Investment Option Guide for more details. American Funds 2010 Target Date Retirement Fund Class R-6 American Funds 2015 Target Date Retirement Fund Class R-6 American Funds 2020 Target Date Retirement Fund Class R-6 American Funds 2025 Target Date Retirement Fund Class R-6 American Funds 2030 Target Date Retirement Fund Class R-6 American Funds 2035 Target Date Retirement Fund Class R-6 American Funds 2040 Target Date Retirement Fund Class R-6 American Funds 2045 Target Date Retirement Fund Class R-6 American Funds 2050 Target Date Retirement Fund Class R-6 American Funds 2055 Target Date Retirement Fund Class R-6 American Funds 2060 Target Date Retirement Fund Class R-6 American Funds EuroPacific Growth Fund Class R-6 Invesco Diversified Dividend Fund R6 T. Rowe Price Growth Stock Fund I Class Vanguard Extended Market Index Fund Institutional Shares Vanguard Total International Stock Index Fund Institutional Shares Walden Asset Management Fund Western Asset Core Plus Bond Fund Class IS 10

11 TIAA Investment Options Being Removed Beginning October 1, 2018, several investment options offered through the Plan will no longer be available. As a result, all existing balances and future contributions in mutual fund investments will be transferred to the new investment options. Balances in all TIAA and CREF annuity accounts will remain, although future contributions to certain annuity accounts will be directed to new investment options. See the following charts for details. The transfer of balances will appear as an exchange on your account history and quarterly statement. Mutual Funds (All balances and contributions will be directed to the new investment options.) Old Investment Options American Funds EuroPacific Growth R4 Expense Ratio: 0.85% American Funds New Perspective R4 Expense Ratio: 0.81% Columbia Mid Cap Index Fund Z Expense Ratio: 0.20% DFA Emerging Markets I Expense Ratio: 0.48% TIAA-CREF Lifecycle Retire Inc Premier Expense Ratio: 0.53% TIAA-CREF Lifecycle 2010 Premier Expense Ratio: 0.53% TIAA-CREF Lifecycle 2015 Premier Expense Ratio: 0.54% TIAA-CREF Lifecycle 2020 Premier Expense Ratio: 0.55% TIAA-CREF Lifecycle 2025 Premier Expense Ratio: 0.56% TIAA-CREF Lifecycle 2030 Premier Expense Ratio: 0.57% TIAA-CREF Lifecycle 2035 Premier Expense Ratio: 0.58% TIAA-CREF Lifecycle 2040 Premier Expense Ratio: 0.59% TIAA-CREF Lifecycle 2045 Premier Expense Ratio: 0.60% TIAA-CREF Lifecycle 2050 Premier Expense Ratio: 0.60% TIAA-CREF Lifecycle 2055 Premier Expense Ratio: 0.60% TIAA-CREF Lifecycle 2060 Premier Expense Ratio: 0.60% New Investment Options American Funds EuroPacific Growth R6 Expense Ratio: 0.50% American Funds Target Date Retirement Funds Class R6 see Target Date Age Chart on page 17 Vanguard Extended Market Idx I Expense Ratio: 0.06% American Funds Target Date Retirement Funds Class R6 see Target Date Age Chart on page 17 American Funds 2010 Target Date Retire R6 Expense Ratio: 0.35% American Funds 2010 Target Date Retire R6 Expense Ratio: 0.35% American Funds 2015 Target Date Retire R6 Expense Ratio: 0.35% American Funds 2020 Target Date Retire R6 Expense Ratio: 0.37% American Funds 2025 Target Date Retire R6 Expense Ratio: 0.39% American Funds 2030 Target Date Retire R6 Expense Ratio: 0.41% American Funds 2035 Target Date Retire R6 Expense Ratio: 0.42% American Funds 2040 Target Date Retire R6 Expense Ratio: 0.43% American Funds 2045 Target Date Retire R6 Expense Ratio: 0.43% American Funds 2050 Target Date Retire R6 Expense Ratio: 0.43% American Funds 2055 Target Date Retire R6 Expense Ratio: 0.45% American Funds 2060 Target Date Retire R6 Expense Ratio: 0.46% 11

12 Old Investment Options T. Rowe Price Growth Stock Adv Expense Ratio: 0.93% Vanguard Developed Markets Idx Admiral Expense Ratio: 0.07% Vanguard Inflation-Protected Secs Admiral Expense Ratio: 0.10% Vanguard Small Cap Index Admiral Expense Ratio: 0.06% New Investment Options T. Rowe Price Growth Stock I Expense Ratio: 0.52% Vanguard Total Intl Stock Index I Expense Ratio: 0.09% American Funds Target Date Retirement Funds Class R6 see Target Date Age Chart on page 17 Vanguard Extended Market Index I Expense Ratio: 0.06% Annuity accounts (All existing balances will remain and all future contributions will be directed to the new investment options.) Old Investment Options CREF Bond Market Account R2 (Variable Annuity) Expense Ratio: 0.40% CREF Equity Index Account R2 (Variable Annuity) Expense Ratio: 0.335% CREF Global Equities Account R2 (Variable Annuity) Expense Ratio: 0.44% CREF Growth Account R2 (Variable Annuity) Expense Ratio: 0.375% CREF Inflation-Linked Bond Account R2 (Variable Annuity) Expense Ratio: 0.35% CREF Money Market Account R2 (Variable Annuity) Expense Ratio: 0.34% CREF Social Choice Account R2 (Variable Annuity) Expense Ratio: 0.375% New Investment Options Western Asset Core Plus Bond IS Expense Ratio: 0.42% Vanguard Institutional Index I Expense Ratio: 0.04% American Funds Target Date Retirement Funds Class R6 see Target Date Age Chart on page 17 T. Rowe Price Growth Stock I Expense Ratio: 0.52% American Funds Target Date Retirement Funds Class R6 see Target Date Age Chart on page 17 Vanguard Federal Money Market Investor Expense Ratio: 0.11% Walden Asset Management Expense Ratio: 1.00% For more information on annuities in employer-sponsored retirement plan see: TIAA.org/public/offer/products/annuities/retirement-plan-annuities. 12

13 Understanding Plan Fees in Your TIAA Account Important update on your retirement plan s recordkeeping and investment management fees When making decisions about Wesleyan University s 403(b)(7) Retirement Plan, it s important to know there are fees associated with many of the plan s services and investments. Some fees may be paid by your employer; others may be paid by you, based on the services and investments you choose. A recent change impacts 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.* Effective October 1, 2018, an annual Plan Servicing Fee of 0.073% ($0.73 per $1,000 invested), will be deducted proportionally from each of your investments on a quarterly basis. This amount will be realized by assessing a fee or credit to each investment you choose within the plan. Each fee or credit will be applied to your account on the last business day of each quarter and is identified as a TIAA Plan Servicing Fee or a Plan Servicing Credit on your quarterly statements (see the Investment-Specific Services section for more detail). The fee or credit will be applied beginning with the quarter ending December 31, 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 would pay $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. The amount of any associated fee or credit is determined by comparing the Total Administration Cost to the Revenue Sharing amount. If the Revenue Sharing amount exceeds the Total Administration Cost, a credit is applied. If the Revenue Sharing amount is less than the Total Administration Cost, then a fee is applied. For information on investment-specific expenses and fees, please refer to the investment tables provided. You can also find the expense ratios and other fees and expenses at TIAA.org/wesleyanct or in the prospectuses at TIAA.org/performance. Brokerage Fee If you open a brokerage account, as Brokerage Services customers you will be 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. As a reminder, 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 plan at no additional cost to you. Investment advice is available online, by phone or through a one-on-one advice session. Visit TIAA.org/wesleyanct to learn more. * Plan servicing fees can be deducted from investment options in Retirement Choice and Retirement Choice Plus contracts. However, plan servicing fees cannot be deducted from investment options in Retirement Annuity, Group Retirement Annuity, Supplemental Retirement Annuity and Group Supplemental Retirement Annuity contracts. 13

14 Wesleyan University s 403(b)(7) Retirement Plan investment lineup 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. Investment Options Investment Expenses Plan Servicing Fee Calculations (A+B=C) 14 Account or Fund Ticker Gross Expense Ratio 3 % American Funds 2010 Target Date Retirement Fund 6 Class R6 American Funds 2015 Target Date Retirement Fund 6 Class R6 American Funds 2020 Target Date Retirement Fund 6 Class R6 American Funds 2025 Target Date Retirement Fund 6 Class R6 American Funds 2030 Target Date Retirement Fund 6 Class R6 American Funds 2035 Target Date Retirement Fund 6 Class R6 American Funds 2040 Target Date Retirement Fund 6 Class R6 American Funds 2045 Target Date Retirement Fund 6 Class R6 American Funds 2050 Target Date Retirement Fund 6 Class R6 American Funds 2055 Target Date Retirement Fund 6 Class R6 American Funds 2060 Target Date Retirement Fund 6 Class R6 American Funds EuroPacific Growth Fund 6 - R6 CREF Money Market R2 (variable annuity) CREF Stock R2 (variable annuity) Invesco Diversified Dividend Fund 6 Class R6 T Rowe Price Growth Stock Fund 6 Class I TIAA Real Estate (variable annuity) TIAA Traditional 1,2 (guaranteed annuity) Vanguard Extended Market Index Fund Institutional Vanguard Federal Money Market Fund Investor Vanguard Institutional Index Fund Institutional Net Expense Ratio 3 % A. Revenue Sharing 4 % B. Plan Servicing Fee/(Credit) 5 % RFTTX RFJTX RRCTX RFDTX RFETX RFFTX RFGTX RFHTX RFITX RFKTX RFUTX RERGX QCMMPX (0.127) QCSTPX (0.127) LCEFX PRUFX QREARX (0.167) N/A (0.077) VIEIX VMFXX VINIX C. Total Administrative Fee %

15 Investment Options Investment Expenses Plan Servicing Fee Calculations (A+B=C) Account or Fund Ticker Gross Expense Ratio 3 % Vanguard Total Bond Market Index Fund Admiral Vanguard Total International Stock Index Fund Institutional Net Expense Ratio 3 % A. Revenue Sharing 4 % B. Plan Servicing Credit 5 % VBTLX VTSNX Walden Asset WSBFX (0.177) Management Fund 6 Western Asset Core Plus Bond Fund 6 Class IS WAPSX C. Total Administrative Fee % Wesleyan University s 403(b)(7) Retirement Plan restricted annuities and credits: The following table includes retirement plan annuities that are restricted, as participant contributions are no longer accepted. These annuities will, however, continue to rebate plan offsets. The following table details each retirement plan annuity option in the plan and any associated Plan Servicing Credits. Investment Options Investment Expenses Plan Servicing Fee Calculations (A+B=C) Account or Fund Ticker Gross Expense Ratio 3 % CREF Bond Market R2 (Variable Annuity) CREF Equity Index R2 (Variable Annuity) CREF Global Equities R2 (Variable Annuity) CREF Growth R2 (Variable Annuity) CREF Inflation-Linked Bond R2 (Variable Annuity) CREF Social Choice R2 (Variable Annuity) Net Expense Ratio 3 % A. Revenue Sharing 4 % B. Plan Servicing Fee/(Credit) 5 % QCBMPX (0.127) QCEQPX (0.127) QCGLPX (0.127) QCGRPX (0.127) QCILPX (0.127) QCSCPX (0.127) C. Total Administrative Fee % 1 This guaranteed option is a fixed annuity that pays you interest at competitive crediting rates that are announced in advance. There is no expense ratio because these are fixed annuities. Any guarantees under annuities issued by TIAA are subject to TIAA s claims-paying ability. 2 TIAA Traditional is a guaranteed insurance contract and not an investment for federal securities law purposes. 3 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. 4 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, TIAA Stable Value 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. 5 Plan Servicing Fee/Credit is determined by subtracting the amount of revenue share provided by each investment option you choose from 0.073%, the plan s cost for administrative services. If you choose an investment with revenue sharing of more than 0.073%, you ll receive a credit for the difference 6 A contractual or voluntary fee waiver may apply. See fund prospectus for details. 15

16 Have questions Fees are important and help ensure that regardless of the investments selected, all plan participants share in the cost of retirement plan administration. As you plan your financial goals, keep in mind that fees are just one factor in the decision-making process. If you have questions about any of the fees associated with your retirement plan, you can visit TIAA.org/wesleyanct or call TIAA at TIAA Self-Directed Brokerage Option Wesleyan University is adding a brokerage services option for participants who would like investment choices beyond the core investment menu, effective October 1, The brokerage services option for the retirement plan gives participants a choice of thousands of mutual funds and many well-known fund families beyond the core investment options. 1 It s important to understand Wesleyan 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. Wesleyan University recommends that you exercise caution and consider seeking professional guidance when investing through a TIAA Brokerage account. Before investing in a brokerage account, consider contacting TIAA. You can learn more about a brokerage account by contacting TIAA at , weekdays, 8 a.m. to 7 p.m. (ET), or by visiting tiaa.org/wesleyanct beginning October 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/public/pdf/forms/SDA_Customer_Account_ Agreement.pdf. Other fees and expenses apply to a continued investment in the funds and are described in the fund s current prospectus. 16

17 Target Date Funds Chart For Both Fidelity and TIAA American Funds Target Date Retirement Funds Class R-6 provide a professionally maintained, diversified mix of investments that shifts its emphasis to more conservative investments as the year of retirement nears. 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. Keep in mind that diversification does not ensure a profit or protect against a loss. The funds are subject to the volatility of the financial markets, including that of equity and fixed income investments in the U.S. and abroad, and may be subject to risks associated with investing in high-yield, small-cap, and foreign securities. Date of Birth American Funds Target Retirement Funds Retirement Date Range 1/1/ /31/1947 American Funds 2010 Target Date Retirement Fund Class R-6 Before /1/ /31/1952 American Funds 2015 Target Date Retirement Fund Class R /1/ /31/1957 American Funds 2020 Target Date Retirement Fund Class R /1/ /31/1962 American Funds 2025 Target Date Retirement Fund Class R /1/ /31/1967 American Funds 2030 Target Date Retirement Fund Class R /1/ /31/1972 American Funds 2035 Target Date Retirement Fund Class R /1/ /31/1977 American Funds 2040 Target Date Retirement Fund Class R /1/ /31/1982 American Funds 2045 Target Date Retirement Fund Class R /1/ /31/1987 American Funds 2050 Target Date Retirement Fund Class R /1/ /31/1992 American Funds 2055 Target Date Retirement Fund Class R /1/ /31/2099 American Funds 2060 Target Date Retirement Fund Class R and later Date of birth ranges were selected by Wesleyan University. 17

18 Frequently Asked Questions Why has the University decided to change the retirement fund options in the plan? For over 40 years, the federal government has required employer sponsored pension plans to comply with a detailed series of standards under the law known as ERISA (Employee Retirement Income Security Act). ERISA s standards place a number of important requirements on employers including what it refers to as a fiduciary responsibility. Within this fiduciary responsibility is the requirement to review plan construction and performance including the fees, returns and diversification of the options available to its employees. Wesleyan administers this responsibility through its Retirement Plan Investment Committee, a group of administrators with faculty and staff representatives, as well as the input of an independent consultant, Fiduciary Investment Advisors (FIA). Following a recent review and with the advice of FIA, the committee concluded that these upcoming mapping and fund changes better met our fiduciary obligations under ERISA. These changes are meant to help ensure better management, lower fees for employees in the aggregate, more equitable distribution of fees, and provide more competitive historical rates of return. Past performance is no guarantee of future results. Is the design of my benefits changing (eligibility, employer contributions, distributions, loans)? No, there have been no plan design changes. All employer contributions, ability to take distributions and ability to take loans on your plan are staying exactly the same as before. Is the TIAA Traditional option with the guaranteed minimum of 3% changing? No, the current contracts will not change and participants will continue to have the ability to invest in the TIAA Traditional account. The current guaranteed minimum will remain in place. Is there going to be a socially responsible investment option on either of the TIAA and/or Fidelity platforms? Yes, Walden Asset Management will be an option on both the TIAA and Fidelity platforms. The committee wanted to offer an investment that meets the needs of a Social ESG investor (Environmental, Social, and Corporate Governance) but at the same time meets the performance standards of a fund that does not use these screens. Please note that other socially responsible investments will be available through the brokerage window in both the TIAA and Fidelity platforms and may better align with an employee s individual ethical concerns and goals if the Walden Asset Management fund does not. 18

19 Can Wesleyan provide investment advice? No, its responsibilities under ERISA prevent this. Wesleyan can provide educational resources but not advice. This is a safeguard for employees under the law. The Committee will not and cannot guarantee performance or relative performance of the funds. You, as the participant will continue to make your own investment choices from the funds that are offered. TIAA and Fidelity can provide investment advice, both over the phone and in person. Investment advice can also be given via the websites as well. Do I need to enroll in the new funds during Open Enrollment? No. The fund changes are effective October 1, You can make the changes anytime until then. If your funds are no longer being offered, your TIAA and Fidelity funds will be mapped over to new funds. You can choose different investment options at any time. If I reallocate my funds online, are there additional fees to make a transfer? No. If my fund choices are no longer offered, do I have to move the money already invested? Balances in annuities will stay and can be manually moved. Mutual fund balances will be mapped to new investment options per the mapping instructions on pages 7-12 of this brochure. What are the deadlines to make changes? If you want to make changes to your investment options, you can do so at any time until October 1, Any time after October 1, though, you can still change funds to different funds. Again, this does not have to occur during open enrollment. What happens to my future contributions if I do nothing? If your fund choices are not being eliminated, your contributions will remain as before. If your fund choices are no longer offered, your future contributions will be mapped to the new fund specified on pages 7-12 of this brochure. 19

20 Can I have funds in both TIAA and Fidelity accounts? Yes. What is levelized pricing? Levelized pricing is the industry recognized best practice to appropriately assess fees to employees. This transition moves the institution to a place where all participants are assessed the same cost (as a percentage of assets) for record keeping services (services that all participants receive). What is an "age based or target date fund? 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. Are the American Funds "Target Date Retirement Funds" replacing the TIAA-CREF Lifecycle Funds the same as those replacing CREF Global Equities and Inflation- Linked Bond Account? If so, doesn't that reduce the level of diversification for people invested in both the Lifecycle and CREF funds? Target date retirement funds offer a fund choice that can help simplify the investment process for participants of all ages by providing exposure to multiple asset classes, while incorporating a comprehensive glide path which reallocates a participant s portfolio over time as they near retirement. Due to the increasing popularity among participants and the use as a plan s default option (called a Qualifying Default Investment Alternative, or QDIA), the selection of a suite of target date funds is unlike the selection of other investment options in the plan lineup. The Committee carefully considered the unique characteristics of the plan and beliefs regarding topics such as: management style, diversification, volatility, and fees. These considerations led to the decision to replace the TIAA-CREF Lifecycle Funds with the American Funds Target Date Retirement Funds as the Plan s QDIA. The QDIA may serve as a default allowing plan sponsors to direct participant monies to these funds in the absence of a participant election and/or availability of a like investment option (which would be the case for CREF Global Equities and Inflation-Linked Bond). Please note that like investments may be available through the brokerage window on both the TIAA and Fidelity platforms. 20

21 Calendar of Events Date Plan Activity September 11, 2018 TIAA Group Meeting, 12:00 P.M. - 1:00 P.M., Usdan Room 108 September 13, 2018 Fidelity Group Meeting, 12:00 P.M. - 1:00 P.M., Usdan Room 108 October 1, 2018 New investment options added to Fidelity and TIAA. October 1, 2018 If you take no action, your new contributions and existing balances will be directed to the new investment menu as indicated on the Mapping Charts included in this guide. You may make changes after October 1, 2018, by logging onto your account. The effective date of Plan changes and the end of the transition period depend upon the accurate, timely transfer of data. If this does not occur, the delivery of services and investment options described in this brochure could be delayed. Want to schedule a one-on-one consultation? Investment Provider Website Phone Number Fidelity Investments TIAA TIAA.org/schedulenow

22 For More Information Investment Provider Website or Phone Number Fidelity Investments TIAA TIAA.org/wesleyanct Download the NetBenefits Mobile App Check balance and account performance, update contribution amounts or change investments and more! Microsoft SurfaceTM app Smartphone and ipad app Screenshots are for illustrative purposes only. System availability and response times may be subject to market conditions. The trademarks and service marks appearing herein are the property of their respective owners. All other trademarks and service marks are the property of FMR LLC or an affiliated company, and may be registered. Log in to TIAA.org or the TIAA app* to check your balances, check your personal rate of return, move money among your plan s investment options, set up edelivery, update personal information and manage communication preferences. Get the TIAA App.* The TIAA group of companies does not provide legal or tax advice. Please consult your legal or tax advisor. Apple, the Apple logo, iphone, and ipad are trademarks of Apple Inc., registered in the United States and other countries. App Store is a service mark of Apple Inc. Android and Google Play are trademarks of Google Inc. *Not all features are available on all devices. 22

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24 Investing involves risk, including risk of loss. A mutual fund expense ratio is the total annual fund or class operating expenses (before waivers or reimbursements) paid by the fund and stated as a percentage of the fund s total net assets. For other types of investments, the figure in the expense ratio field reflects similar information, but may have been calculated differently than for mutual funds. Mutual fund data comes from the fund s prospectus. For non mutual fund investment options, the information has been provided by the plan sponsor, the investment option s manager, or the trustee. When no ratio is shown for these options, it is because none was available. There may be fees and expenses associated with the investment option. Expense information changes periodically. Please consult NetBenefits.com for updates. Nevertheless, there may be fees and expenses associated with the investment option. This material is for informational or educational purposes only and does not constitute a recommendation or investment advice in connection with a distribution, transfer or rollover, a purchase or sale of securities or other investment property, or the management of securities or other investments, including the development of an investment strategy or retention of an investment manager or advisor. 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 in consultation with an investor s personal advisor 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/wesleyanct 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. Brokerage Services are provided by TIAA Brokerage Services, a division of TIAA-CREF Individual & Institutional Services, LLC, Member FINRA and SIPC. Investment products may be subject to market and other risk factors. See the applicable product literature or visit TIAA.org/wesleyanct for details. American Funds and Fidelity Investments are not affiliated. TIAA and Fidelity Investments are not affiliated Teachers Insurance and Annuity Association of America-College Retirement Equities Fund, 730 Third Avenue, New York, NY Although this booklet was prepared for Wesleyan University s 403(b)(7) Retirement Plan by Fidelity Investments for the convenience of Plan participants, certain pages in it were supplied by non-fidelity investment providers. Each provider offering products and services to the Plan or its participants is solely responsible for the content on its applicable pages and does not assume any responsibility or liability for the content supplied by any other provider. Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, RI FMR LLC. All rights reserved