Your guide for the road to retirement. Announcing changes to the Marquette University Retirement Plan

Transcription

1 Your guide for the road to retirement Announcing changes to the Marquette University Retirement Plan

2 Table of Contents A new chapter for your retirement plan is about to start 1 Your new investment options 2 Do you know your investment style? 3 For all plan participants 4-5 On-campus events 6 Retirement Plan investment advice 7 Q&A 8-9 We re here to help Back Cover

3 A new chapter for your retirement plan is about to start Marquette University is pleased to announce enhancements to our retirement program. Marquette is committed to providing you with competitive retirement benefits, services and tools you need to plan for a secure financial future. After a careful review of the program, several enhancements will be made throughout the next year that will strengthen the plan, enabling us to meet our fiduciary responsibilities in overseeing the plan, and provide you with the competitive retirement benefits you deserve. Please read the contents of this packet carefully for information about key dates, suggested next steps, and how to get help. What you need to know TIAA will continue to be the University s platform and service provider. The Plan is introducing a revised investment lineup. (See page 2.) New Retirement Choice (RC) contracts will accept future retirement plan contributions, rollovers and transfers. (See page 4.) A TIAA Financial Consultant will be at Marquette University to answer your questions in person. (See page 6.) You can continue to receive personalized advice on the plan s investment options at no additional cost. (See page 7.) New automated services coming soon. Important dates to remember Key Dates April 15, 2016 Week of April 18, 2016 April 19-21, 2016 April 22, 2016 May 19, 2016 New fund lineup goes into effect. You will receive a Welcome Kit in the mail with important information on your new contract with TIAA. On-campus Seminars. Payroll contributions received on or after this date will be directed to the new contracts with TIAA. Existing mutual fund assets will be transferred to the new investment options. Assets in the annuities will remain in the existing contracts. You may choose to transfer from old contracts to new contracts, please see additional information on page 4. Questions? Call or vsit TIAA.org/marquette 1

4 Your new investment options These new choices may offer you flexibility to create a retirement strategy that matches your investment preferences and goals. You can see details about the new investment options online at TIAA.org/marquette. Click on Plans and Investments and then select Investment Choices to view the individual investment information. GUARANTEED* TIAA Traditional Annuity* MONEY MARKET TIAA-CREF Money Market Institutional FIXED INCOME (BONDS) Dreyfus International Bond I Vanguard Total Bond Market Index Admiral Metropolitan West Total Return Bond I MULTI-ASSET TIAA-CREF Lifecycle Retirement Income Institutional TIAA-CREF Lifecycle 2010 Institutional TIAA-CREF Lifecycle 2015 Institutional TIAA-CREF Lifecycle 2020 Institutional TIAA-CREF Lifecycle 2025 Institutional TIAA-CREF Lifecycle 2030 Institutional TIAA-CREF Lifecycle 2035 Institutional TIAA-CREF Lifecycle 2040 Institutional TIAA-CREF Lifecycle 2045 Institutional TIAA-CREF Lifecycle 2050 Institutional TIAA-CREF Lifecycle 2055 Institutional TIAA-CREF Lifecycle 2060 Institutional CREF Social Choice R2 (variable annuity) REAL ESTATE TIAA Real Estate Account (variable annuity) EQUITIES (STOCKS) CREF Growth R2 (variable annuity) CREF Stock R2 (variable annuity) DFA US Targeted Value I Lazard International Strategic Equity Institutional Vanguard Total International Stock Index Admiral Vanguard Total Stock Market Index Admiral TICKER N/A TICKER TCIXX TICKER DIBRX VBTLX MWTIX TICKER TLRIX TCTIX TCNIX TCWIX TCYIX TCRIX TCIIX TCOIX TTFIX TFTIX TTRIX TLXNX QCSCPX TICKER QREARX TICKER QCGRPX QCSTPX DFFVX LISIX VTIAX VTSAX * 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/marquette for details. Annuity account options are available through annuity contracts issued by TIAA or CREF. These contracts are designed for retirement or other long-term goals, and offer a variety of income options, including lifetime income. Payments from the variable annuity accounts are not guaranteed and will rise or fall based on investment performance. 2 Questions? Call or visit TIAA.org/marquette

5 What s your investment style? Do you prefer to let financial professionals make some investment decisions for you? Or do you have the desire and skills to select your own investments? Option 1: Choose a TIAA-CREF Lifecycle fund A diversified retirement portfolio in a single fund of funds Option 2: Build your own portfolio If you re comfortable choosing investments, create your own portfolio. How do TIAA-CREF Lifecycle funds work? A TIAA-CREF Lifecycle fund may be a good choice if you prefer a hands-off approach to managing your retirement portfolio. Each TIAA-CREF Lifecycle fund is a fund of funds, primarily invested in shares of other mutual funds.* The fund s investments are adjusted from more aggressive to more conservative over time as the target date approaches. What else should I consider? As with all mutual funds, the principal value of a TIAA-CREF Lifecycle fund isn t guaranteed and will fluctuate. The target date indicates when investors may plan to start making withdrawals. However, you are not required to withdraw funds at the target date. After the target date, your money may be merged into a fund with a more stable asset allocation. A TIAA-CREF Financial Consultant can help you decide whether a TIAA-CREF Lifecycle fund is right for you. What types of investments are included? The new investment menu offers you a wide range of investment options. These options cover the major asset classes, including equities, fixed income, guaranteed, multi-asset, and real estate and may give you the flexibility to create a retirement portfolio that matches your investment preferences and goals. What else should I consider when choosing my own investments? Consider your risk tolerance when selecting investments. If you prefer to work with a financial professional, you may wish to have a TIAA Financial Consultant suggest a portfolio based on the options available in your retirement plan. This retirement plan investment advice is available at no extra cost. Please keep in mind that there are risks associated with investing in securities, including possible loss of principal. Your retirement plan is designed to work for both types of investors. * TIAA-CREF 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 the TIAA-CREF Lifecycle funds, there is exposure to the fees and expenses associated with the underlying mutual funds. Questions? Call or vsit TIAA.org/marquette 3

6 For all plan participants How your assets will be transferred to the new investment options Three ways to manage your account Online To update your account online, go to TIAA.org/marquette and log in to your account. (If you have not logged in online before, you will need to set up a passwordprotected login.) Phone If you have any questions or would like assistance selecting your new investment options, call TIAA at , Monday to Friday, 7 a.m. to 9 p.m., or Saturday, 8 a.m. to 5 p.m. (CT). In person We encourage you to schedule an hour long one-on-one advice session with a TIAA Financial Consultant. To schedule your advice session, call , Monday to Friday, 7 a.m. to 9 p.m., or Saturday, 8 a.m. to 5 p.m. (CT). You can also view schedule online at employeebenefits.shtml. On April 15, 2016, you will automatically be enrolled in the new Marquette University Retirement Plan/Retirement Choice (RC) contract. TIAA will send you an enrollment confirmation that includes your new account information. Beginning April 22, 2016, all new employer, voluntary contributions, rollovers and transfers will be directed to the new investment options as shown in the asset transfer chart on the next page. Assets in TIAA and CREF annuity accounts will remain in your existing contract(s) although no new contributions, rollovers or transfers in may be made to these contracts. Beginning May 19, 2016, assets in mutual funds will be transferred to the new investment options as shown in the transfer chart. If you d prefer to pursue a different investment strategy than the one shown on the transfer chart, you may make changes through the secure website or by calling TIAA. (See Three ways to manage your account in the box to the left.) Most of the major differences between the old and new contracts relate to the TIAA Traditional Annuity. If you re thinking about transferring money out of an old contract, please note the following points: The TIAA Traditional Annuity in the Retirement Choice (RC) contract has a guaranteed minimum interest rate* of between 1 and 3 percent, which may be lower than your current guaranteed rate. On the other hand, TIAA Traditional may have a higher crediting rate than the plan s previous contracts. When TIAA Traditional assets are transferred out of an old contract, you risk giving up a favorable crediting rate(s) on older contributions. Retirement Choice contracts have different liquidity rules. Moving money from any investment in a Retirement Annuity (RA), Supplemental Retirement Annuity (SRA), Group Retirement Annuity (GRA), or Group Supplemental Retirement Annuity (GSRA) contract to a Retirement Choice (RC) contract is a permanent decision. Money cannot be moved back into the old contracts. For details, see the Contract Comparison located at TIAA.org/marquette. If you have questions, call * All guarantees are subject to TIAA s claims-paying ability. 4 Questions? Call or visit TIAA.org/marquette

7 The chart below shows how your assets and future contributions will be transferred to the new investment options Current Investment Option Ticker New Investment Option Ticker CREF Bond Market Account R2 (variable annuity)* QCBMPX Vanguard Total Bond Market Index Adm VBTLX CREF Equity Index Account R2 (variable annuity)* QCEQPX Vanguard Total Stock Market Index Adm VTSAX CREF Global Equities Account R2 (variable annuity)* QCGLPX CREF Stock R2 QCSTPX CREF Inflation-Linked Bond Account R2 (variable annuity)* QCILPX TIAA-CREF Money Market Institutional TCIXX CREF Money Market Account R2 (variable annuity)* QCMMPX TIAA-CREF Money Market Institutional TCIXX TIAA-CREF Growth & Income Institutional TIGRX Vanguard Total Stock Market Index Admiral VTSAX TIAA-CREF International Equity Institutional TIIEX Lazard International Strategic Equity Institutional LISIX TIAA-CREF Mid-Cap Value Institutional TIMVX DFA US Targeted Value I DFFVX TIAA-CREF Real Estate Securities Institutional TIREX Vanguard Total Stock Market Index Admiral VTSAX TIAA-CREF Social Choice Equity Institutional TISCX CREF Social Choice R2 QCSCPX TIAA-CREF Small-Cap Equity Institutional TISEX DFA US Targeted Value I DFFVX TIAA-CREF S&P 500 Index Institutional TISPX Vanguard Total Stock Market Index Admiral VTSAX TIAA-CREF Large-Cap Value Institutional TRLIX Vanguard Total Stock Market Index Admiral VTSAX TIAA-CREF Mid-Cap Growth Institutional TRPWX Vanguard Total Stock Market Index Admiral VTSAX TIAA-CREF Bond Index Institutional TBIIX Vanguard Total Bond Market Index Admiral VBTLX TIAA-CREF International Equity Index Institutional TCIEX Vanguard Total International Stock Index Admiral VTIAX TIAA-CREF Emerging Markets Equity Institutional TEMLX Lazard International Strategic Equity Institutional LISIX TIAA-CREF Emerging Markets Equity Index Institutional TEQLX Vanguard Total International Stock Index Admiral VTIAX TIAA-CREF Bond Institutional TIBDX Vanguard Total Bond Market Index Admiral VBTLX TIAA-CREF Bond Plus Institutional TIBFX Metropolitan West Total Return Bond I MWTIX TIAA-CREF Equity Index Institutional TIEIX Vanguard Total Stock Market Index Admiral VTSAX TIAA-CREF High-Yield Institutional TIHYX Metropolitan West Total Return Bond I MWTIX TIAA-CREF Inflation Link Bond Institutional TIILX TIAA-CREF Money Market Institutional TCIXX TIAA-CREF Large-Cap Growth Institutional TILGX Vanguard Total Stock Market Index Admiral VTSAX TIAA-CREF Large-Cap Gr Index Institutional TILIX Vanguard Total Stock Market Index Admiral VTSAX TIAA-CREF Large-Cap Value Index Institutional TILVX Vanguard Total Stock Market Index Admiral VTSAX TIAA-CREF Managed Allocation Institutional TIMIX CREF Social Choice R2 QCSCPX TIAA-CREF Small-Cap Blend Index Institutional TISBX DFA US Targeted Value I DFFVX TIAA-CREF Short-Term Bond Institutional TISIX TIAA-CREF Money Market Institutional TCIXX TIAA-CREF Global Natural Resources Institutional TNRIX TIAA-CREF Money Market Institutional TCIXX * Assets in TIAA and CREF annuity accounts will remain in your existing contract(s) although no new contributions, rollovers or transfers in may be made to these contracts. Questions? Call or vsit TIAA.org/marquette 5

8 On-campus events Get real-time answers to your questions. Seminars Attend a one-hour seminar presented by a TIAA Financial Consultant to learn more about the changes at the following dates and times: Date Time Location Tuesday, April p.m. AMU Ballroom C/D Wednesday, April 20 7 a.m., 12 p.m., and 5 p.m. AMU Ballroom C/D Thursday, April p.m. AMU Ballroom C/D One-on-one investment advice Receive personalized retirement plan investment advice at no additional charge from a TIAA Financial Consultant. Your spouse or partner is also welcome to attend with you. To schedule your advice session, call , Monday to Friday, 7 a.m. to 9 p.m., or Saturday, 8 a.m. to 5 p.m. (CT). You can view the upcoming schedule online at hr/employeebenefits.shtml. 6 Questions? Call or visit TIAA.org/marquette

9 Retirement plan investment advice TIAA advice is designed to help you answer key questions including: 1. Am I on track to reach my retirement savings goals? We ll help you analyze how your investments are performing, and determine if you re saving enough to help meet your needs. 2. Which combination of retirement plan investments is right for me? Get assistance picking the right investments, based on your plan s investment options, diversifying properly and allocating contributions to balance your need for growth potential with your tolerance for risk. 3. How can I meet my income needs in retirement? Get help determining the amount you ll need to meet your retirement income goals. How to access TIAA advice Online Get quick, convenient answers via the Retirement Advisor online tool. Visit TIAA.org/marquette, click Log In and select the Advice and Guidance tab. By phone or in person You can receive personalized retirement plan investment advice either over the phone or in person. To schedule your advice session, call , Monday to Friday, 7 a.m. to 9 p.m. or Saturday, 8 a.m. to 5 p.m. (CT). You can also view schedule online at employeebenefits.shtml. IMPORTANT: The projections or other information generated by the Retirement Advisor tool regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results and are not guarantees of future results. Results may vary with each use and over time. Questions? Call or visit TIAA.org/marquette 7

10 Q&A 1. Why is Marquette University updating the Marquette University Retirement Plan? Marquette University is committed to providing a retirement program that reflects industry best practices. The updates are designed to strengthen the Retirement Plan and help you pursue your retirement savings goals more effectively. 2. How can I learn about the new investment options? A list of the new investment options is included in this guide. You can visit the dedicated retirement program website at TIAA.org/marquette for additional information. 3. Will I pay any fees to make investments in the Marquette University Retirement Plan? All investment options have expense ratios and other investment-specific fees that can be found in the prospectuses at TIAA.org/marquette. Some investment options may also have redemption fees. 4. If I m happy with my current investment selections, can I keep them? If your current investment selections are included on the new menu, you can keep them. However, some current investment options will be removed and some will be restricted (and will no longer accept new contributions). Please check the new investment options and the transfer chart to understand how your investments may be affected. 5. What if I would like help making investment choices? You can get personalized advice on the plan s investment options from a TIAA Financial Consultant. This service is available as part of your retirement program at no additional cost to you. To schedule an advice session, call TIAA at , Monday to Friday, 7 a.m. to 9 p.m. or Saturday, 8 a.m. to 5 p.m. (CT). You can also view the schedule online at employeebenefits.shtml. 6. What should I expect from an advice session? You can expect a thorough review of your account and an action plan for moving forward. Advice sessions last approximately one hour. Bring all your investment account statements, including any retirement investments outside of the retirement plan and your most recent Social Security statement, if available. A TIAA Financial Consultant will use this information to understand your current financial situation and develop an action plan. 7. My spouse/partner/friend is very involved in my finances. Can I bring others to a meeting? Yes. You may bring anyone you choose to a group meeting or an advice session. continued 8 Questions? Call or visit TIAA.org/marquette

11 Q&A 8. Can I transfer my assets in old TIAA-CREF contracts to the new Retirement Choice (RC) contracts? If you have reviewed the different benefits and features in your plan s contracts, as described in the How your assets will be transferred to the new investment options section, and decide that you want to transfer money to the new contracts, call TIAA at , Monday to Friday, 7 a.m. to 9 p.m. or Saturday, 8 a.m. to 5 p.m. (CT), or schedule an in-person advice session. To view the schedule online, go to edu/hr/employeebenefits.shtml. 9. Does it make sense to consolidate my retirement accounts from other providers? Many people find it easier to manage their retirement money by keeping the number of accounts to a minimum. That said, transferring assets can sometimes trigger costs. Before consolidating outside retirement assets, you may want to check with your employee benefits office to see if you can transfer those assets directly to your TIAA-CREF retirement account. You should carefully consider all your options. For instance, you may be able to leave money with a prior provider, roll over money to an IRA, or cash out all or part of the account value. You should weigh the advantages and disadvantages of each option carefully, including desired investment options and services, fees and expenses, withdrawal options, required minimum distributions, tax treatment, and your particular financial needs. You should seek the guidance of your financial professional and tax advisor prior to consolidating assets. A TIAA Financial Consultant can help you explore your options. To schedule an advice session, call TIAA at , Monday to Friday, 7 a.m. to 9 p.m. or Saturday, 8 a.m. to 5 p.m. (CT). You can also view the schedule online at employeebenefits.shtml. 10. Does it make sense to consolidate my TIAA-CREF accounts? You may move money out of your old TIAA-CREF contracts to the new contracts, subject to the rules of your retirement plan and any applicable restrictions on the investments. However, any money that you move out of the old contracts cannot be moved back into them. Money moved out of TIAA Traditional in the old contracts will no longer receive the 3% minimum guaranteed rate and will lose its applicable vintages. If you have been contributing to TIAA Traditional, you should review the total credited rate in the old contract by logging in to your account at TIAA.org/marquette or calling , Monday to Friday, 7 a.m. to 9 p.m. or Saturday, 8 a.m. to 5 p.m. (CT). And if you expect to retire within ten years, you should compare the potential lifetime credited rates for TIAA Traditional before transferring from TIAA Traditional in the old contracts to the new contracts. You can move money into and out of your mutual fund options at any time, subject to any applicable plan rules and investment restrictions. Questions? Call or visit TIAA.org/marquette 9

12 We re here to help Not sure where to begin? Meet with us to help you take the next step! Get personalized retirement plan advice on the plan s investment options from a TIAA Financial Consultant. This service is available as part of your retirement program at no additional cost to you. To schedule a session, call , Monday to Friday, 7 a.m. to 7 p.m. (CT). You can also view it online at Phone Call , Monday to Friday, 7 a.m. to 9 p.m. or Saturday, 8 a.m. to 5 p.m. (CT). Online Visit TIAA.org/marquette to learn about the program s investment choices, make transactions and access retirement planning tools. 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 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 (TIAA-CREF), 730 Third Avenue, New York, NY C (03/16)