Focused on the one future that matters. Yours.

Transcription

1 Focused on the one future that matters. Yours. Your CUNY Retirement Plan

2 Make a new connection for your future You recently received a flyer in the mail about changes to the voluntary City University of New York Tax-Deferred Annuity (TDA) Plan currently administered by MetLife. This transition guide will explain how these changes will affect the TDA Plan, why they are being made, what key actions you can take and when you need to take action. You can also learn about the changes at group and individual information seminars and information tables that will be at your schl throughout Fall Although you are not currently a participant in this plan, we encourage you to read this guide carefully. Why are these changes being made? Industry best practices indicate that employer-based plans should offer employees an easy-to-understand, yet diversified investment portfolio that offers participants the opportunity to plan for financial well-being in retirement. Industry best practices also encourage employers to monitor the options offered in their retirement plans, as well as any fees charged to participants relative to appropriate benchmarks and other retirement plans of similar size. The updates to The City University of New York (CUNY) TDA Plan, outlined in this transition guide, were crafted with these best-practice principles in mind. Actions you need to take During Online Open Enrollment, September 26 November 15, 2016, you can: open a new TDA Plan account with TIAA, chse new investment options from the new fund array, and designate your beneficiary. If you have an existing account balance with MetLife, it will remain invested with MetLife. You may voluntarily transfer that balance to a new CUNY TDA Plan account with TIAA beginning in January However, you should consult with an advisor prior to taking such action to ensure that it makes the most sense for your individual circumstances and investments. TIAA financial consultants will be able to assist you in working with MetLife. What you need to know TIAA will become the sole recordkeeper of the TDA Plan and will replace MetLife for future TDA Plan contributions, effective January CUNY selected TIAA because of its ability to deliver comprehensive retirement services. A recordkeeper is responsible for managing the day-to-day operations of the plan. No matter how much or how little you think you can save, if you participate in the Plan, you will have access to personalized advice and guidance on the Plan s investment options from a TIAA financial consultant. This service is available as part of your CUNY retirement plan at no additional cost to you. You can meet with a TIAA financial consultant by phone or schedule an in-person one-on-one session. Advice and guidance is also available online. New investment choices will be available. The new investments, carefully selected by CUNY, can help you create a retirement savings plan that matches your investment goals and preferences. The investments offered through MetLife will be closed for future (new) contributions, effective January Also new in 2017 a Roth Contribution option, which is detailed on page 7. Investment fees will be lower in the new TDA Plan. CUNY has negotiated lower fees and selected investment options with a lower overall cost. This means more of your investment dollars will be at work for you. Take advantage of these changes. Consider opening a TDA Plan account. Saving just a little per paycheck can add up. 2 Your CUNY Retirement Plan

3 Connect to your plan on these key dates September 26, 2016: Online open enrollment with TIAA begins. We encourage you to open a TDA Plan account. TIAA financial consultants will be at CUNY schls to help you enroll with TIAA and answer your questions. Stop by the TIAA information desks, and you will be able to complete your 2017 enrollment immediately, including selecting your investments and designating your beneficiaries. The options you select will go into effect January You may also attend one of the many group seminars that will be offered on your campus. See the enclosed Event Schedule for specific dates for your schl. Have questions? Call TIAA at Consultants are available weekdays, 8 a.m. to 10 p.m. and Saturdays, 9 a.m. to 6 p.m. (ET), or visit TIAA.org/cuny for additional information. Schedule a one-on-one session with a financial consultant to get personalized retirement plan advice and guidance. See back cover. November 15, 2016: Online open enrollment ends. Complete and submit a new 2017 Salary Reduction Agreement to your Campus Benefits Officer. January 1, 2017: The new investment options take effect. If you open a TDA Plan account, contributions will be directed to the new investments, and the Roth option will be available. January 3, 2017: You can register for online account access with TIAA if you opened a new TDA Plan account. January 4, 2017: if you opened a new TDA Plan account, your new account is available for full access and account management. You will also receive a welcome kit in the next few days with instructions and important information on making the most of your participation with TIAA. January 5, 2017: First biweekly payroll contributions will be directed to your TDA Plan account if you are at a four-year college. January 13, 2017: First biweekly payroll contributions will be directed to your TDA Plan account if you are at a two-year college. Links that make the connection stronger CUNY and TIAA are committed to providing the resources to help you select your investments: Attend on-site seminars to learn more about the new investment options and TIAA s support and assistance provided to all participants. Please check the enclosed Event Schedule for specific dates for your schl. Many seminars will be delivered in Spanish. Additional language support can be accessed by phone. Visit an on-site information desk for one-on-one support at your schl. Please check the enclosed Event Schedule for specific dates. Check out the new TIAA retirement plan website at TIAA.org/cuny to find more information about the TDA Plan and access financial tls. 3

4 CUNY TDA Plan investment menu effective January 1, 2017 These new choices may offer you flexibility to create a retirement portfolio that matches your investment preferences and goals. GUARANTEED REAL ESTATE TIAA Traditional Annuity (Guaranteed Annuity)* N/A TIAA Real Estate Account (Variable Annuity) QREARX MONEY MARKET EQUITIES (STOCKS) CREF Money Market Account R3 (Variable Annuity) QCMMIX American Beacon Holland Large Cap Growth Fund Institutional Class LHGIX FIXED INCOME (BONDS) CREF Inflation-Linked Bond Account (R3) (Variable Annuity) Lord Abbett High Yield Fund Class R6 Templeton Global Bond Fund Class R6 Vanguard Total Bond Market Index Fund Admiral Western Asset Core Plus Bond Fund Class IS QCILIX LHYVX FBNRX VBTLX WAPSX Ariel Appreciation Fund Institutional Class Champlain Mid Cap Fund Institutional Class CREF Stock Account (R3) (Variable Annuity) Delaware Emerging Markets Fund R6 JPMorgan Small Cap Value Fund R6 Lazard International Equity Portfolio R6 Shares MFS Mid Cap Value Fund Class R5 CAAIX CIPIX QCSTIX DEMZX JSVUX RLIEX MVCKX MULTI-ASSET Nationwide Geneva Small Cap Growth Fund Institutional Class NWKCX TIAA-CREF Lifecycle Retirement Income Fund (Institutional) TLRIX Parnassus Fund Institutional Shares PFPRX TIAA-CREF Lifecycle 2010 Fund (Institutional) TCTIX TIAA-CREF Growth & Income Fund (Institutional) TIGRX TIAA-CREF Lifecycle 2015 Fund (Institutional) TCNIX TIAA-CREF Large-Cap Value Fund (Institutional) TRLIX TIAA-CREF Lifecycle 2020 Fund (Institutional) TCWIX TIAA-CREF International Equity Index Fund (Institutional) TCIEX TIAA-CREF Lifecycle 2025 Fund (Institutional) TCYIX TIAA-CREF Mid-Cap Growth Fund (Institutional) TRPWX TIAA-CREF Lifecycle 2030 Fund (Institutional) TCRIX T. Rowe Price QM U.S. Small Cap Growth Equity PRDSX TIAA-CREF Lifecycle 2035 Fund (Institutional) TCIIX Vanguard 500 Index Fund Admiral VFIAX TIAA-CREF Lifecycle 2040 Fund (Institutional) TCOIX Vanguard Equity Income Fund Admiral VEIRX TIAA-CREF Lifecycle 2045 Fund (Institutional) TTFIX Vanguard Extended Market Index Fund Admiral VEXAX TIAA-CREF Lifecycle 2050 Fund (Institutional) TIAA-CREF Lifecycle 2055 Fund (Institutional) TIAA-CREF Lifecycle 2060 Fund (Institutional) CREF Social Choice Account (R3) (Variable Annuity) TFTIX TTRIX TLXNX QCSCIX Additional investment information including expense ratios and other fund-specific fees, such as redemption fees, can be found in the prospectus at TIAA.org/public/tcfpi/InvestResearch. To learn more about the new investment options, go to TIAA.org and enter the ticker symbol in the site s search feature. * TIAA Traditional Annuity is a guaranteed insurance contract and not an investment for federal securities law purposes. Any guarantees under annuities issued by TIAA are subject to TIAA s claims-paying ability. Investment products may be subject to market and other risk factors. See the applicable product literature, or visit TIAA.org and enter a ticker symbol in the site s search feature for details. Annuity account options are available through annuity contracts issued by TIAA or CREF. These contracts are designed for retirement or other long-term goals and offer a variety of income options, including lifetime income. Payments from the variable annuity accounts are not guaranteed and will rise or fall based on investment performance. 4 Your CUNY Retirement Plan

5 More information and frequently asked questions (FAQs) Connect with tomorrow: The next few pages highlight common questions, including some that you might have about the changes to the plans. How can I connect my future contributions to the new investment options? Online open enrollment begins September 26, 2016, and ends November 15, You should consider opening a TDA account and start saving for your future. Enroll in the TDA Plan with TIAA during this time, and select your investments from the new menu (shown at left). How can I enroll in the TDA Plan with TIAA by November 15, 2016? Chse to do it yourself or connect with TIAA before November 15, 2016, and have the following information with you: Your investment selections from the new investment menu (shown at left) Your Social Security number Your beneficiary s birth date, address and Social Security number, if available. If your beneficiary is a trust, include the trust name, date established and type of trust Do it yourself online connection: Enroll online at TIAA.org/cunytdaoe Have the information noted above handy before you start Go to TIAA.org/cunytdaoe and follow the steps outlined on the screen or on the enclosed QuickStart Guide If you need help while at your computer, call for assistance Connect with TIAA: Enroll at the TIAA information desk or at a group seminar at your schl Refer to the enclosed Event Schedule to find out when TIAA will be at your schl Stop by the information desk and a TIAA consultant will help you enroll Attend a group seminar or make an individual appointment for a consultation Remember to bring the required information noted above Also, you will need to submit a new 2017 Salary Reduction Agreement by November 15, 2016 Make your money work as hard as you do The earlier you start contributing to your plan, the longer your money can work through the power of compounding. Compounding happens when earnings on your savings get reinvested to generate additional earnings. Over time, compounding can fuel the growth of your savings. Your retirement plan offers valuable benefits: Pretax savings: no taxes are taken on your contributions or their earnings, until you take money out of the plan.* Every dollar you save is on a pretax basis, which can reduce your current taxable income.* Diverse investments You can build a portfolio of professionally managed investments suited to your personal goals and risk tolerance. Roth contribution option. See page 7 to learn more. * Does not apply to Roth contributions. All withdrawals are subject to ordinary income tax. Withdrawals prior to age 59½ may be subject to an additional 10% penalty. Questions? Call or visit TIAA.org/cuny 5

6 FAQS (CONTINUED) What are lifecycle funds? A lifecycle fund is a fund of funds, primarily invested in shares of other mutual funds.* Its investments are adjusted from more aggressive to more conservative over time as the target retirement date approaches. The principal value of a target date fund isn t guaranteed. The target date in the fund name represents an approximate date when investors may plan to begin withdrawing from the fund. Also, please note that a lifecycle fund is selected for you based on your projected retirement date (assuming a retirement age of 65). TIAA-CREF LIFECYCLE FUNDS Participant birth year TIAA-CREF Lifecycle Fund N/A TIAA-CREF Lifecycle Retirement Income Fund (Institutional) TLRIX TIAA-CREF Lifecycle 2010 Fund (Institutional) TCTIX TIAA-CREF Lifecycle 2015 Fund (Institutional) TCNIX TIAA-CREF Lifecycle 2020 Fund (Institutional) TCWIX TIAA-CREF Lifecycle 2025 Fund (Institutional) TCYIX TIAA-CREF Lifecycle 2030 Fund (Institutional) TCRIX TIAA-CREF Lifecycle 2035 Fund (Institutional) TCIIX TIAA-CREF Lifecycle 2040 Fund (Institutional) TCOIX TIAA-CREF Lifecycle 2045 Fund (Institutional) TTFIX TIAA-CREF Lifecycle 2050 Fund (Institutional) TFTIX TIAA-CREF Lifecycle 2055 Fund (Institutional) TTRIX 1994 present TIAA-CREF Lifecycle 2060 Fund (Institutional) TLXNX * Lifecycle funds share the risks associated with the types of securities held by each of the underlying funds in which they invest. In addition to the fees and expenses associated with lifecycle funds, there is exposure to the fees and expenses associated with the underlying mutual funds. 1918: TIAA Teachers Insurance and Annuity Association of America created 1952: CREF College Retirement Equities Fund created About TIAA and CREF TIAA provides strong support on the road to retirement, no matter how much or how little you have to invest. TIAA has been a CUNY retirement plan provider for almost 50 years and now we are entering a new chapter with them. In January 2017, TIAA will become the sole recordkeeper of the CUNY TDA Plan, and TIAA will provide financial consultation to all CUNY employees including faculty, staff and classified employees. Nearly 100 years ago, TIAA was established to help teachers save for and generate income in retirement. As an organization with deep rts among nonprofits and in higher education, TIAA is committed to enhancing retirement plan services and sharing them with the institutions they serve. 6 Your CUNY Retirement Plan

7 A Roth contribution option will be added to the TDA Plan in January 2017 Make the connection to a new way to save. Read below to learn more about the new Roth option, then consider if it might be right for you. What is a Roth contribution? The Roth (after-tax) contribution provides you the option to make aftertax contributions to your retirement savings. These savings and any earnings are not taxed when qualified withdrawals are made.* How is a Roth contribution different than a pretax contribution? The major difference between a Roth contribution option and the current contribution option is when you pay income taxes. In the current CUNY TDA Plan with MetLife, contributions are pretax as the money comes out of the paycheck before it is taxed. Pretax contributions lower your taxable income in the year of your contribution, and your contributions and earnings are tax deferred until you take them out of your TDA Plan account. With the Roth contribution option, your contribution is taken out of your paycheck after taxes are paid. Roth contributions do not lower your current taxable income. Why might contributing to the Plan on an after-tax basis be to your advantage? Your Roth contributions, and the accumulations on them, are tax free upon withdrawal.* Since you have already paid taxes on the amount you contributed, these assets may be passed along to your heirs, income tax free. It may provide significant tax savings especially if you expect your tax rate to be higher when you retire. While it s difficult to predict what your future tax situation may be, you ll want to estimate as best as you can, taking into consideration the best choice for your current tax circumstances. You may want to consult a tax advisor. Can I make pretax contributions and Roth contributions? The CUNY TDA Plan will offer you both pretax and Roth contribution options. You may decide to utilize the pretax option and add the Roth contribution option, as well. You will need to indicate your choice on a new 2017 Salary Reduction Agreement by November 15, Please note that the overall annual 403(b) contribution limit remains the same, and will be crdinated between pretax and Roth 403(b) contributions. * Withdrawals of earnings prior to age 59½ are subject to ordinary income tax, and a 10% penalty may apply. Earnings can be distributed tax free if distribution is no earlier than five years after contributions were first made and you meet at least one of the following conditions: Age 59½ or older or permanently disabled. Beneficiaries may receive a distribution in the event of your death. Questions? Call or visit TIAA.org/cuny 7

8 Connect with your new CUNY Retirement Plan: Attend an on-campus group seminar. See enclosed Event Schedule for more information. Learn more about the new investment menu at TIAA.org/cuny. Explore the online resources including TIAA.org/allocation to help you decide which options might be right for you for your 2017 contributions. See enclosed Online Tls & Resources flyer for calculators and financial tls to help you find financial well-being. Review the QuickStart Guide enclosed to learn more about enrolling in the TDA Plan beginning September 26, Visit TIAA.org/cunytdaoe to get started online. Not sure where to begin? Meet with TIAA to help you take the next step! Participants in the plan can get personalized retirement plan advice and guidance on the plan s investment options from a TIAA financial consultant. This service is available as part of your retirement program at no additional cost to you. Have questions? CUNY is committed to helping you understand the changes and make informed investment decisions for your needs. By phone: Call TIAA at Consultants are available weekdays, 8 a.m. to 10 p.m. and Saturdays, 9 a.m. to 6 p.m. (ET). Llame a TIAA al Hay asesores disponibles de lunes a viernes, de 8 a.m. a 10 p.m. y sábados, 9 a.m. a 6 p.m. (Hora del este). In person: To schedule a session with a TIAA financial consultant, call , weekdays, 8 a.m. to 8 p.m. (ET). TIAA s retirement plan investment advice is designed to help you answer key questions including: Am I on track to reach my retirement savings goals? Which combination of retirement plan investments is right for me? How can I meet my income needs in retirement? 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 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. Call or access TIAA.org/cuny 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 Teachers Insurance and Annuity Association of America-College Retirement Equities Fund, 730 Third Avenue, New York, NY C _683905_NON