The road to retirement. Announcing changes to the Wesleyan University Retirement Plans

Transcription

1 The road to retirement Announcing changes to the Wesleyan University Retirement Plans

2 Table of contents A new chapter is about to start 1 Action plan for the changes 2 Changes in detail 3 Transfer charts 4 New investment options menu 5-6 Understanding retirement plan fees 7 Retirement plan investment advice 8 TIAA Brokerage Services 9 Choose your investment path 10 On-campus events 11 Q&A 12 We re here to help 13 2 Questions? Call or visit TIAA.org/wesleyanct

3 A new chapter is about to start Helping you plan and save for the future is important to us here at Wesleyan University. That s why we re pleased to announce the following updates to the Wesleyan University Retirement Plans. What you need to know New investment options. The new investments, carefully selected by Wesleyan University for its employees, may give you the ability to create a diversified retirement portfolio. New Retirement Choice (RC)/Retirement Choice Plus (RCP) contracts will be issued. All existing balances will remain in the old contracts, although no new contributions, rollovers or transfers may be made into the old contracts. Future contributions will be directed to the new investment options in the new RC/RCP contracts. Increased transparency on fees. A new fee structure to make it easier to see the cost of each investment option as well as fees paid for plan administration. 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. New TIAA Brokerage Services option. If you would like to have access to more investment choices, Wesleyan University is adding a brokerage services option. Please note: Wesleyan University will not monitor the performance of the funds in your personal brokerage account and TIAA does not offer investment advice for brokerage balances. Auto Enrollment Reminder. As previously communicated by Wesleyan College Human Resources, effective January 1, 2018, an employee who satisfies the eligibility requirements for the staff retirement plan/retirement plans will be automatically enrolled in the staff retirement/ retirement plans as of the first of the month following the date the employee satisfies the eligibility requirements. Please contact the Benefits Department at benefits@wesleyan.edu if you have any questions. No longer employed by Wesleyan University? You are receiving this guide because you have investments in one or more of the Wesleyan University Retirement Plans. Even though you are not actively contributing, you should review this information carefully to learn how your account could be affected. Important Note: If you have a foreign mailing address on file, there may be restrictions due to international securities laws on investing in the new options. If you have a legitimate U.S. mailing address in Puerto Rico, or an Army Post Office (APO), Diplomatic Post Office (DPO), or Fleet Post Office (FPO) box, the restrictions may not apply to you. Please call TIAA for more information at , weekdays, 8 a.m. to 10 p.m. and Saturday, 9 a.m. to 6 p.m. (ET). Retirement plan changes start March 16, 2018 Key dates Beginning week of February 26, 2018 Beginning week of March 16, 2018 From March 16 - April 1, 2018 Week of March 19, 2018 April 2, 2018 Event On-site seminars and information desk begin. Retirement plan investment advice is now available online, by phone or in person through a one-on-one advice session. Open investment election period. You may make selections from the new investment options, for an effective date of April 2, You will be enrolled in a TIAA account, and the following week, you will receive a confirmation kit with important information on making the most of your participation with TIAA. Your new account receives the first payroll contribution. Changes take effect. All contributions will be directed to your new account. Questions? Call or visit TIAA.org/wesleyanct 1

4 Action plan for the changes Investment election period. Participants will have the option to select investment options from the new menu during an investment election period, starting March 16, While changes to your investment elections can be made at any time, the investment election period allows you to select from the new investment options prior to April 2, 2018, when the changes go into effect. From March 16 through April 1, 2018, you can: Access your new account online at TIAA.org/wesleyanct. Update your investment allocations for future contributions. Review your beneficiary designation and update if needed.* Once the transition is complete, you will be able to make changes to your existing balances. For details on how the balances and future contributions will transfer, refer to pages 4 and 5. Have questions? Attend a seminar to get a guided tour of the plan changes, details on page 11. Use the online Retirement Advisor tool. It provides investment advice based on your goals and risk tolerance. You can access this tool after logging in to your new account, under the WHAT WE OFFER tab, then under Insights, select Retirement Advisor. Schedule an advice session with a financial consultant to get personalized retirement plan advice (page 8). * For married participants: Under many retirement plans, spouses are entitled to receive 50% of the participant s retirement plan assets. If you would like to direct less than 50% to your spouse, you and your spouse will need to complete a spousal waiver form for each affected contract. 2 Questions? Call or visit TIAA.org/wesleyanct

5 How your future contributions will be directed to the new investment options Changes to the retirement plan s investment lineup Wesleyan University is taking this opportunity to change the investment options available through the plan. The new investments, carefully selected by Wesleyan University for its employees, may give you the ability to create a diversified retirement portfolio that matches your investment goals and preferences. In addition, Wesleyan University has decided to change the plan s default investment option. The new default option is the age-related American Funds Retirement Target Date Fund. Each target-date fund provides a diversified retirement portfolio in a single fund. Please see the chart at the top of page 5 for a list and explanation of age-related default funds. Effective April 2, 2018, Wesleyan University will remove several investment options from the lineup and replace them with new options. Future contributions will be directed to the replacement investment options. See the transfer charts on the following page for more details about these changes. You will be enrolled in new Retirement Choice (RC) and Retirement Choice Plus (RCP) accounts on March 16, 2018, and sent an enrollment confirmation. Your current beneficiary designation(s) will be applied to your new account(s). Current Contracts Wesleyan University Retirement Plan for Staff Employees / TIAA Retirement Annuity (RA) Tax-Deferred Annuity Plan for Employees of Wesleyan University / TIAA Retirement Annuity (RA), TIAA Supplemental Retirement Annuity (SRA)/TIAA Group Supplemental Retirement Annuity (GSRA) Wesleyan University 457(b) Plan / TIAA Group Supplemental Retirement Annuity (GSRA) New Contracts Wesleyan University Retirement Plan for Staff Employees / TIAA Retirement Choice Annuity (RC) Tax-Deferred Annuity Plan for Employees of Wesleyan University / TIAA Retirement Choice Plus Annuity (RCP) Wesleyan University 457(b) Plan / TIAA Retirement Choice Plus Annuity (RCP) How your future contributions and current account balances will be affected Starting April 2, 2018, your future contributions will be directed to your new account and the new investment options, as shown in the transfer chart on the following page. Any existing balances (current assets) will remain in current investment options, in the old contracts, unless you choose to move them. Understanding your new account(s) There are a number of differences between your Retirement Annuity, Supplemental Retirement Annuity, and Group Supplemental Retirement Annuity contracts and the new Retirement Choice and Retirement Choice Plus contracts. Most of the differences apply to the TIAA Traditional Annuity and are highlighted below. If you re thinking about transferring some or all of your account balances to your new contract, make sure you understand the differences before you initiate a transfer. Under the Retirement Choice/Retirement Choice Plus contracts, TIAA Traditional has a rate guarantee that is between 1% and 3%, determined annually, which may be lower than the guaranteed rate in your current contract.* The adjustable rate guarantee in the new contracts allow TIAA to be more responsive to the prevailing interest rate environment, and provides the potential for higher credited rates through the crediting of additional amounts.** When TIAA Traditional balances are transferred out of an existing contract, you risk giving up a favorable crediting rate(s) on older contributions. TIAA Traditional balances in the Retirement Choice contract can be liquidated within a shorter time frame than under the existing Retirement Annuity and Group Retirement Annuity contracts. Moving money from an existing contract to a new contract is a permanent decision. Money cannot be moved back into legacy contracts. For details, see the Contract Comparison chart located at TIAA.org/wesleyanct. If you have questions, call * Guarantees are subject to TIAA s claims-paying ability. ** TIAA s Board of Trustees declares whether additional amounts will be paid in March of each year. Additional amounts are not guaranteed. Such additional amounts, when declared, remain in effect for the declaration year which begins each March 1 for accumulating annuities and January 1 for payout annuities. Additional amounts are not guaranteed for periods other than the period for which they were declared. Questions? Call or visit TIAA.org/wesleyanct 3

6 The charts below show how Wesleyan University will direct future contributions to the new investment options. Current Mutual Funds Current Option Ticker Replacement Option Ticker American Funds EuroPacific Growth R4 REREX American Funds EuroPacific Growth R6 RERGX American Funds New Perspective R4 RNPEX Age Related American Funds Target Date Retire R6 Various Columbia Mid Cap Index I NMPAX Vanguard Extended Market Idx I VIEIX DFA Emerging Markets I DFEMX Age Related American Funds Target Date Retire R6 Various TIAA-CREF Lifecycle Retire Inc Premier TPILX American Funds 2010 Target Date Retire R6 RFTTX TIAA-CREF Lifecycle 2010 Premier TCTPX American Funds 2010 Target Date Retire R6 RFTTX TIAA-CREF Lifecycle 2015 Premier TCFPX American Funds 2015 Target Date Retire R6 RFJTX TIAA-CREF Lifecycle 2020 Premier TCWPX American Funds 2020 Target Date Retire R6 RRCTX TIAA-CREF Lifecycle 2025 Premier TCQPX American Funds 2025 Target Date Retire R6 RFDTX TIAA-CREF Lifecycle 2030 Premier TCHPX American Funds 2030 Target Date Retire R6 RFETX TIAA-CREF Lifecycle 2035 Premier TCYPX American Funds 2035 Target Date Retire R6 RFFTX TIAA-CREF Lifecycle 2040 Premier TCZPX American Funds 2040 Target Date Retire R6 RFGTX TIAA-CREF Lifecycle 2045 Premier TTFPX American Funds 2045 Target Date Retire R6 RFHTX TIAA-CREF Lifecycle 2050 Premier TCLPX American Funds 2050 Target Date Retire R6 RFITX TIAA-CREF Lifecycle 2055 Premier TTRPX American Funds 2055 Target Date Retire R6 RFKTX TIAA-CREF Lifecycle 2060 Premier TLXPX American Funds 2060 Target Date Retire R6 RFUTX T. Rowe Price Growth Stock Adv TRSAX T. Rowe Price Growth Stock I PRUFX Vanguard Developed Markets Idx Admiral VTMGX Vanguard Total Intl Stock Index I VTSNX Vanguard Inflation-Protected Secs Adm VAIPX Age Related American Funds Target Date Retire R6 Various Vanguard Small Cap Index Adm VSMAX Vanguard Extended Market Idx I VIEIX Current Annuities Current Option Ticker Replacement Option Ticker CREF Bond Market Account R2 (Variable Annuity) QCBMPX Western Asset Core Plus Bond IS WAPSX CREF Equity Index Account R2 (Variable Annuity) QCEQPX Vanguard Institutional Index I VINIX CREF Global Equities Account R2 (Variable Annuity) QCGLPX Age Related American Funds Target Date Retire R6 Various CREF Growth Account R2 (Variable Annuity) QCGRPX T. Rowe Price Growth Stock I PRUFX CREF Inflation-Linked Bond Account R2 (Variable Annuity) QCILPX Age Related American Funds Target Date Retire R6 Various CREF Money Market Account R2 (Variable Annuity) QCMMPX Vanguard Federal Money Market Investor VMFXX CREF Social Choice Account R2 (Variable Annuity) QCSCPX Walden Asset Management WSBFX continued 4 Questions? Call or visit TIAA.org/wesleyanct

7 Target-date fund birth chart These are the plan s age-related default investment options selected by Wesleyan University. Birth year New investment option Ticker Prior to 1947 American Funds 2010 Target Date Retirement Fund R6 RFTTX American Funds 2015 Target Date Retirement Fund R6 RFJTX American Funds 2020 Target Date Retirement Fund R6 RRCTX American Funds 2025 Target Date Retirement Fund R6 RFDTX American Funds 2030 Target Date Retirement Fund R6 RFETX American Funds 2035 Target Date Retirement Fund R6 RFFTX American Funds 2040 Target Date Retirement Fund R6 RFGTX American Funds 2045 Target Date Retirement Fund R6 RFHTX American Funds 2050 Target Date Retirement Fund R6 RFITX American Funds 2055 Target Date Retirement Fund R6 RFKTX 1993 Current American Funds 2060 Target Date Retirement Fund R6 RFUTX Your new investment options menu These new choices offer you more flexibility to create a diversified 1 retirement portfolio. Your new options on page 6 include the following asset classes: Guaranteed, Money Market, Fixed Income (Bonds), Multi-Asset, Real Estate, Equities (Stocks), and Brokerage Services. To learn more about the new investment options, go to TIAA.org and enter the ticker symbol in the site s search feature. Brokerage Services details appear on page 9 of this guide. continued 1 Diversification is a technique to help reduce risk. It is not guaranteed to protect against loss. As with all mutual funds, the principal value of a lifecycle fund isn t guaranteed at any time and will fluctuate with market changes. The target date approximates when investors may plan to start making withdrawals. However, you are not required to withdraw the funds at that target date. After the target date has been reached, some of your money may be merged into a fund with a more stable asset allocation. 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 lifecycle funds, there is exposure to the fees and expenses associated with the underlying mutual funds. Questions? Call or visit TIAA.org/wesleyanct 5

8 Your new investment options menu continued Your Guaranteed option is a fixed annuity that pays you interest at competitive crediting rates that are announced in advance. There is no explicit expense ratio because this is a fixed annuity. TIAA Traditional 1 Annual Fund Operating Expenses Plan Servicing Fee Calculations (A + B = C) Investment Option Ticker Gross Expense Ratio 2 % Net Expense Ratio 2 % A. Revenue Sharing 3 % B. Plan Servicing Fee/ (Credit) 4 % C. Total Administrative Fee 5 % GUARANTEED TIAA Traditional Annuity (Guaranteed Annuity) 1 N/A (.077).073 MONEY MARKET Vanguard Federal Money Market Investor VMFXX FIXED INCOME Western Asset Core Plus Bond IS WAPSX Vanguard Total Bond Market Index Admiral VBTLX MULTI-ASSET American Funds 2010 Target Date Retire R6 RFTTX American Funds 2015 Target Date Retire R6 RFJTX American Funds 2020 Target Date Retire R6 RRCTX American Funds 2025 Target Date Retire R6 RFDTX American Funds 2030 Target Date Retire R6 RFETX American Funds 2035 Target Date Retire R6 RFFTX American Funds 2040 Target Date Retire R6 RFGTX American Funds 2045 Target Date Retire R6 RFHTX American Funds 2050 Target Date Retire R6 RFITX American Funds 2055 Target Date Retire R6 RFKTX American Funds 2060 Target Date Retire R6 6 RFUTX REAL ESTATE TIAA Real Estate Account R2 (Variable Annuity) QREARX (.167).073 EQUITIES (STOCKS) American Funds EuroPacific Growth R6 RERGX CREF Stock Account R2 (Variable Annuity) QCSTPX (.127).073 Invesco Diversified Dividend R6 6 LCEFX T. Rowe Price Growth Stock I PRUFX Vanguard Extended Market Index I VIEIX Vanguard Institutional Index I VINIX Vanguard Total Intl Stock Index I VTSNX Walden Asset Management 6 WSBFX (.177).073 BROKERAGE SERVICES PAGE 9 Investment products may be subject to market and other risk factors. See the applicable product literature, or visit TIAA.org/wesleyanct 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. 1 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. Interest credited includes a guaranteed rate, plus additional amounts as may be established by the TIAA Board of Trustees. Such additional amounts, when declared, remain in effect for the declaration year which begins each March 1 for accumulating annuities and January 1 for payout annuities. Additional amounts are not guaranteed for periods other than the period for which they were declared. 2 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. 3 "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. 4 Plan Servicing Fee/Credit is determined by subtracting the amount of revenue share provided by each investment 0.073%, you ll receive a credit for the difference. 5 Total administrative fee is the revenue share + plan servicing fee. 6 Contractual or voluntary fee waiver may apply. See fund prospectus for details. 6 Questions? Call or visit TIAA.org/wesleyanct

9 Understanding retirement plan fees Important update on your retirement plan s recordkeeping and investment management fees When making decisions about your Wesleyan University Retirement Plan account, 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.* Beginning April 2, 2018, an annual Plan Servicing Fee of up to.073% 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 Investmentspecific services section for more details). 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 pays $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 table(s) 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 Brokerage Services customers are charged a commission on all 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 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. All things considered Fees are important, but they are just one factor in your decision-making process. In addition to fees and expenses, you should be sure your investment choices reflect your personal risk tolerance, the time frame until your retirement, and the appropriate balance allocation to suit your investment needs. * Plan servicing fees can be deducted from Retirement Choice and Retirement Choice Plus contracts. However, plan servicing fees cannot be deducted from Retirement Annuity, Group Retirement Annuity, Supplemental Retirement Annuity and Group Supplemental Retirement Annuity contracts. Questions? Call or visit TIAA.org/wesleyanct 7

10 Retirement plan investment advice How you can access TIAA advice Online You can get quick, convenient answers via the Retirement Advisor online tool. Visit TIAA.org/retirementadvisor and log in to your account. By phone or in person You can receive personalized retirement plan investment advice either over the phone or in person. You can schedule your advice session by calling , weekdays, 8 a.m. to 8 p.m. (ET). You can also schedule online at TIAA.org/schedulenow. As a participant in the plan, you have access to personalized retirement plan advice on the plan s investment options from a TIAA financial consultant representative. This service is available as part of your retirement program at no additional cost to you. TIAA s 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. 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. 8 Questions? Call or visit TIAA.org/wesleyanct

11 TIAA Brokerage Services Wesleyan University is adding a new selfdirected brokerage option to the plan: Wesleyan University is adding a brokerage services option for participants who would like investment choices beyond the core investment menu. The brokerage services option for retirement plans 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 to learn more You can learn more about a brokerage account* by contacting us at , weekdays, 8 a.m. to 7 p.m. (ET). 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. * 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. Questions? Call or visit TIAA.org/wesleyanct 9

12 Choose your investment path Option 1: Selecting a targetdate fund A diversified retirement portfolio in a single fund of funds How do target-date funds work? Each target-date 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 are some other considerations? As with all mutual funds, the principal value of a target-date 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. A TIAA financial consultant can help you decide whether a target-date fund is right for you. Option 2: Building your own portfolio A retirement portfolio of your own design 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, money market, multi-asset, and real estate and give you the flexibility to create a diversified retirement portfolio. What are some other considerations 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 investment styles. * Target-date 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 target-date funds, there is exposure to the fees and expenses associated with the underlying mutual funds. 10 Questions? Call or visit TIAA.org/wesleyanct

13 On-campus events Real-time answers to your questions Seminars Consider attending a one-hour seminar presented by a TIAA financial consultant to learn more about the changes to the Wesleyan University Retirement Plan at the following dates and times: Date Time Location Monday, February 26, p.m. 1 p.m. Usdan Room 110 Wednesday, February 28, p.m. 4 p.m. Usdan Room 110 One-on-one advice session You can 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 plan at no additional cost to you. You can schedule an advice session with TIAA by calling , weekdays, 8 a.m. to 8 p.m. (ET) or visit TIAA.org/schedulenow. Questions? Call or visit TIAA.org/wesleyanct 11

14 Q&A 1. Why is Wesleyan University changing the Wesleyan University Retirement Plans? Wesleyan University is committed to providing you with competitive retirement benefits and recently conducted a review of the retirement plans. The resulting changes are intended to give you the investments, services and tools you need to pursue your retirement savings goals. 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 plan website at TIAA.org/wesleyanct for additional information. 3. 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 , weekdays, 8 a.m. to 8 p.m. (ET). You can also schedule online at TIAA.org/schedulenow. 4. 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 forty-five minutes. 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. You may bring anyone you like to your session with you. 5. What happens to my current outstanding loan, systematic withdrawal, TPA (transfer payout annuity), or required minimum distribution? You will receive separate communications if any actions are required on your part. 6. Will I pay any fees to invest in the retirement plan(s)? All investment options have expenses and other fees that can be found in the prospectuses at TIAA.org/wesleyanct. Some investment options may also have redemption and other fees. See pages 5-7 for more details. In addition to investment fees, there is an annual TIAA Plan Servicing Fee of.073%. This fee is deducted in quarterly installments of 7.3 basis points or (.073%) (deducted pro rata from the investment options in your account). The deductions will be identified as TIAA Plan Servicing Fee and Non-TIAA Plan Servicing Fee on your statement and when you view your account online. If you open a brokerage account, you will be charged a commission only on applicable transactions and other accountrelated fees in accordance with the TIAA Commission and Fee Schedule. Please review the TIAA Brokerage Account Customer Agreement using the following link: TIAA.org/public/pdf/ forms/sda_customer_account_agreement.pdf. The Agreement contains important information about the brokerage account as well as the TIAA Commission and Fee Schedule. Other fees and expenses that apply to a continued investment in the funds are described in the fund s current prospectus. 7. How do target-date funds work? Each target-date fund consists of underlying mutual funds that invest in a broad range of asset classes. The allocations and risk level depend on how many years remain until the fund s target date. To help reduce risk as the fund s target date approaches, the fund s mix of stocks, bonds and other types of investments is adjusted to a more conservative mix. 8. What else should I know about target-date funds? As with all mutual funds, the principal value of a target-date fund isn t guaranteed and will fluctuate with market changes. The target date indicates when investors may plan to start making withdrawals. However, you are not required to withdraw your money at the target date. After the target date, some of your money may be merged into a fund with a more stable asset allocation. 1 A TIAA financial consultant can help you decide whether a target-date fund is right for you. 9. What are annuities? There are different types of annuities but they are typically designed to give you the opportunity to grow your money while you re working and provide you with the option to receive income for life when you retire. In fact, annuities are the only retirement products that can guarantee to pay you (or you and a spouse or partner) income for life. There are two types of annuities: Guaranteed annuities (also known as fixed annuities): Earn a minimum guaranteed interest rate on your contributions, plus the potential for additional amounts of interest. In retirement, guaranteed annuities can offer you income for life that will never fall below a certain guaranteed level and provide income that is guaranteed to last for your lifetime. 2 Variable annuities: Invest in a variety of asset classes and account values will fluctuate based on the performance of the investments in the accounts. In retirement, variable annuities can offer you income for life that varies based on the performance of the account and that is guaranteed to last for your lifetime. (It is possible to lose money in variable annuities.) For more information on annuities in employer-sponsored retirement plans see: TIAA.org/public/offer/products/ annuities/retirement-plan-annuities. 1 Target-date 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 target-date funds, there is exposure to the fees and expenses associated with the underlying mutual funds. 2 Guarantees are based on the claims-paying ability of the issuing company. To learn more about annuities, visit: TIAA.org/public/offer/products/ annuities/retirement-plan-annuities. 12 Questions? Call or visit TIAA.org/wesleyanct

15 We re here to help Not sure where to begin? Let us help you take the next step! In person Phone Online You can schedule a one-on-one advice session by calling TIAA at , weekdays, 8 a.m. to 8 p.m. (ET) or visit TIAA.org/ schedulenow. There is no additional cost to you for this service. If you have any questions or would like assistance selecting your new investment options, you can call TIAA at , weekdays, 8 a.m. to 10 p.m. and Saturday, 9 a.m. to 6 p.m. (ET). You can update your account online by going to TIAA.org/wesleyanct and selecting Log In. If you re new to TIAA, select Log in, then click on Register for Online Access. Follow the on-screen directions to gain online access to your account. Questions? Call or visit TIAA.org/wesleyanct 13

16 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 Teachers Insurance and Annuity Association of America-College Retirement Equities Fund, 730 Third Avenue, New York, NY (02/18)