Important news about your LAUSD 457(b) Deferred Compensation Plan

Transcription

1 Important news about your LAUSD 457(b) Deferred Compensation Plan Los Angeles Unified School District 457(b) Deferred Compensation Plan November 2016 Your LAUSD 457(b) Deferred Compensation Plan will be transitioning from TIAA to Voya LAUSD is partnering with Voya Financial, who will become the new service provider and recordkeeper of the LAUSD 457(b) Deferred Compensation Plan effective January 1, Do something good for yourself by getting acquainted with the new services you ll have access to at Voya, your partner on the journey to retirement. Save the dates See page 6 for a full calendar of important dates! Transition begins December 9, 2016 at 5 p.m. PT Transition expected to be completed on or after January 3, 2017

2 Your future, your way. Table of Contents Enhanced Services and Tools... 3 Fund Line Up... 4 TIAA Traditional Annuity... 5 Key Dates... 6 Account Access... 7 Questions... 8 Here s a brief summary of the Plan changes You ll have access to enhanced services and tools. You ll continue to access your account through 457b.lausd.net and you will have a new transactional mobile app and a new Plan Information Line. The fund line-up will remain almost entirely the same. We ve added two new funds and changed the Self- Directed Brokerage Account provider. The new Plan Information Line will open early so you can ask questions related to the transition. There will be a transition period while the Plan changes take place. Your account will transfer automatically,* and your account will remain invested. Contributions and loan payments will be deducted as usual. There is no action required on your part unless you wish to be invested differently. * Your TIAA Traditional Account will not be transferred. See page 5 for details. 02 I

3 With the change, you ll have access to enhanced services and tools Online resources and planning tools Interactive website and mobile app, Voya Retire, for on-the-go account management. Improve your saving know-how Seminars, access to 1:1 personal planning sessions, and online planning tools help you prepare for the future you deserve. Savvy saving Voya puts you in the driver s seat of your own retirement by giving you the tools and attention you need to confidently take the wheel. Take a look at these new features you ll have access to. Keep an eye on your savings. Use myorangemoney to plan and track your future retirement. New account rebalance feature Keep your investment strategy in line with the automatic rebalancing feature. How you want it Choose or mail, or generate a statement on demand based on the criteria you choose. Take your goals on the go. With the Voya Retire mobile app, you ll be able to check your account balance and transact wherever you are. You have questions. We have answers. Face-to-face or over-the-phone, Voya representatives are here to help. I 03

4 Your investment line up With the exception of the TIAA Traditional Account and the CREF Money Market Fund, all current investment options will be available at Voya. We re also making a few changes. New! We re adding the BlackRock LifePath 2060 (Series K) to the Target Date Fund offering. This fund is designed for those anticipating retirement on or around the year Change! The American Century Heritage will offer lower investment management fees. TD Ameritrade will be the Self-Directed Brokerage Account provider. Not Transferring! The TIAA Traditional Account - see important details on page 5. Current Investment Option Target Date Funds Moves to Voya Effective January 1, 2017 BlackRock LifePath 2020 BlackRock LifePath 2020 BlackRock LifePath 2030 BlackRock LifePath 2030 BlackRock LifePath 2040 BlackRock LifePath 2040 BlackRock LifePath 2050 BlackRock LifePath 2050 Not applicable BlackRock LifePath 2060 New! Balanced Portfolios Vanguard Wellesley Income Vanguard Wellesley Income Vanguard Wellington Vanguard Wellington Money Market CREF Money Market Voya Fixed Account II New! Bond Funds Vanguard Total Bond Mkt Index Vanguard Total Bond Mkt Index PIMCO Total Return PIMCO Total Return US Equity Funds - Large Company American Funds Fundamental Inv American Funds Fundamental Inv American Funds Washington Mutual American Funds Washington Mutual Vanguard Institutional Index Instl Vanguard Institutional Index Instl Vanguard Growth Index Vanguard Growth Index US Equity Funds - Small/Mid Company Vanguard Mid Cap Value Index Vanguard Mid Cap Value Index Vanguard Ext Mkt Index Vanguard Ext Mkt Index American Century Heritage American Century Heritage - New Share Class Change! International Stock Funds American Funds EuroPacific Growth American Funds EuroPacific Growth Vanguard Developed Markets Index Vanguard Developed Markets Index Self-Directed Brokerage Self-Directed Brokerage TD Ameritrade Self-Directed Brokerage Change! Fixed Annuities TIAA Traditional Account N/A TIAA Traditional Account balances will not map to Voya. See page I

5 TIAA Traditional Annuity Account Investors If you are invested in the TIAA Traditional Annuity, balances in this investment will not automatically transfer to Voya. You have three options: You can have your TIAA Traditional Annuity account assets transfer automatically to Voya by transferring your balance and by directing your future contributions into to the CREF Money Market Fund. The CREF Money Market Fund balance will transfer to the Voya Fixed Account, a similar principal guaranteed investment option (see sidebar). This transaction must be requested by the participants at 457b.lausd.net before 5 p.m. PT on December 9, You can wait and transfer your TIAA Traditional Annuity balance to your Voya account after the transition date. You can do nothing and keep your balance in the TIAA Traditional Annuity where it will continue to accrue interest. If you choose this option, you will not be able to contribute additional monies to your TIAA Traditional Annuity account through the LAUSD 457(b) Plan. This money will not be available for loans or emergency withdrawals. Self-Directed Brokerage Account Investors If you invest in the Brokerage Account today, a new account will be established for you by Voya at TD Ameritrade and your investments will automatically transfer to your new account. You ll be receiving a separate information package with the new account information in mid-december. Voya Fixed Account The Voya Fixed Account is a similar investment to the TIAA Traditional Annuity. It guarantees minimum rates of interest and may credit interest that exceeds the minimum guaranteed rate. The current rate is subject to change at any time, but will never fall below the guaranteed minimum. The Voya Fixed Account*, will provide a gross crediting rate of 3.25% through 12/31/17 and 3.00% from 1/1/18 through 12/31/18. Any balances and contribution elections in the CREF Money Market Fund will be automatically transferred to the Voya Fixed Account as part of this transition. For more details, please see the enclosed Fact Sheet and disclosures. Voya Fixed Account is offered by Voya Retirement Insurance and Annuity Company ( VRIAC ). Guarantees are based on the claims-paying ability of VRIAC. The full name of this investment option is the Voya Fixed Account 457/401 II. * The contract s guaranteed minimum interest rate for the life of the contract is 1.00%. I 05

6 Plan ahead During a transition like this, it is common for there to be a period of time when plan activity is closed and participants cannot make any additional account transactions or plan changes. This is known as a blackout period and it is required to ensure that accounts transfer smoothly from one provider to another. Here are a few things to keep in mind and key dates to remember. The blackout period will begin on December 9, 2016 at 5 p.m. PT and is expected to end on or after January 3, During that period, access to your account will be restricted. See the chart below for details. November 1, 2016 Plan Information Line opens for questions. See page 7 for details. December 9, 2016 at 5 p.m. PT Transition period begins. Last day to process a transaction through the TIAA website. Including: Enrolling or changing contribution rate Transferring among the investment options Requesting a loan or withdrawal December 22, 2016 Records are transferred from TIAA to Voya Week of December 26, 2016 Voya issues PIN mailer for account access to your home address On or after January 3, 2017 Account access available again through Voya These changes will take place automatically. Your account will remain invested, and contributions and loan payments will be deducted as usual. There is no action required on your part unless you wish to be invested differently. Fees have been reduced There are costs associated with having an account, and with the transition to Voya, these fees have been reduced. The annual participant fee, charged to your account on a quarterly basis, will be 0.25%. As in the past, investment fees remain listed as an expense ratio. If you have a Self-Directed Brokerage Account, there is a $50 annual fee in addition to the fees charged for the investment options you select. Remember Since you cannot access or make changes to your accounts during the transition period, it is very important that you review and consider the appropriateness of your current investments in light of your inability to direct or diversify those investments. 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. 06 I

7 IMPORTANT! Account access starting in January You ll continue to access your account through 457b.lausd.net and you will have a new transactional mobile app and a new Plan Information Line. 457b.lausd.net Plan Information Line: LAUSD ( ) Search Voya Retire on your favorite app store Here s how you ll establish account access at Voya: Voya will mail to your home address on file a PIN during the week of December 26; it comes in a small security envelope so keep an eye out for it. On or after January 3, 2017, once the transition is complete, you ll use your Social Security Number and PIN to set up your account on the new Plan website - click Register Now - or through the Plan Information Line LAUSD ( ). As part of the set-up, you ll be asked to change your log in credentials to ones of your choosing, keeping in mind your phone access will always require a PIN. You can change your website access to a Username and Password. When accessing your account through the Voya Retire mobile app, you ll use the same credentials as you established for the Plan website. That s it! If you lose or don t receive a PIN, click Register Now on the Plan website. Select Social Security Number and date of birth, and follow the security questions to confirm your identity. Or, call the Plan Information Line to speak with a Customer Service Associate. I I 07 00

8 Any questions? The LAUSD 457(b) Plan Information Line LAUSD ( ) will open on November 1 for general questions related to the transition to Voya. You will not need your Voya issued PIN to speak to a Customer Service Associate during this time. The Customer Service Associates will have access to your specific account information on or after January 3rd and will be able to answer questions about your personal account at that time. They re available weekdays (excluding New York Stock Exchange holidays) from 8 a.m. to 6 p.m. PT. If you have questions about your account currently, please continue to contact TIAA or access your account through 457b.lausd.net. Just a reminder You will not have access to your account during the transition period, beginning 5 p.m. PT on Friday, December 9, 2016 and ending on or after Tuesday, January 3, 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. Investment products may be subject to market and other risk factors. You should consider the investment objectives, risks, charges and expenses carefully before investing. Please call LAUSD ( ) or go to for current product and fund prospectuses that contain this and other information. Please read the prospectuses carefully before investing. Plan administrative services are provided by Voya Institutional Plan Services LLC ( VIPS ). Voya Fixed Account is offered through a group annuity contract by Voya Retirement Insurance and Annuity Company ( VRIAC ). VIPS and VRIAC are members of the Voya family of companies E.P 2016 Voya Services Company. All rights reserved. Voya.com (10.16)