The road to retirement. Announcing updates to the Providence College Retirement Plans

Transcription

1 The road to retirement Announcing updates to the Providence College Retirement Plans

2 Providence College is pleased to announce updates to the Providence College Retirement Plans, effective on or about June 12, 2018 Highlights: Providence College is updating the investment menu. The updated investment menu, carefully selected by Providence College will reduce fund option redundancy, while offering faculty and staff a streamlined and well-diversified* array of offerings to build their retirement portfolio. This new simplified investment menu will offer 22 core options, decreased from 32, as well as a suite of target-date funds. What is staying the same? Although the College is updating the investment menu options, please note that the design of the retirement plan will not change. Contribution rates, eligibility requirements, and all other aspects of the plan s design remain the same. No longer employed by Providence College? You are receiving this guide because you have investments in one or more of the Providence College Retirement Plans. Even though you are not actively contributing, you should review this information carefully to learn how your account could be affected. Action steps Review the investment menu. Get advice. Has it been a while since you reviewed your investment mix? You re eligible to receive retirement plan investment advice at no additional cost. It s all about helping you retire on your terms. Review your beneficiary designation. Review your beneficiary designation and update if needed.** 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). * Diversification is a technique to help reduce risk. It is not guaranteed to protect against loss. ** 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. 1 Questions? Call or visit TIAA.org/providencecollege

3 Changes to the retirement plan's investment menu Providence College routinely looks for ways to improve the design and operation of the retirement program and these updates are a result of that process. The new investments, carefully selected by Providence College for its employees, may give you the ability to create a diversified* retirement portfolio that matches your investment goals and preferences. The new investment menu, effective on or about June 12, 2018, is shown on page 3 of this guide. How your future contributions and current account balances will be affected Future contributions: Effective on or about June 12, 2018, future mutual fund and annuity account contributions for several investment options, will be directed to new investment options. Current balances: Effective on or about June 12, 2018, several mutual fund balances will be directed to new investment options. Any annuity balance(s) you have with TIAA will remain in its current investment, unless otherwise directed by you. No new contributions, rollovers or transfers may be made to five restricted annuity options shown on the following page. You can, however, continue to transfer balances among these restricted annuity options. If you would like to transfer balances, contact a TIAA financial consultant for more information. Your contributions and balance(s) will be invested as shown in the charts on page 4 of this guide. Providence College has selected investment options that are similar to those in the prior menu. While you are not required to take any action as part of the upcoming changes, it s important to carefully consider the options available to you. 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). * Diversification is a technique to help reduce risk. It is not guaranteed to protect against loss. Questions? Call or visit TIAA.org/providencecollege 2

4 Providence College new investment menu These choices may offer you the flexibility to create a diversified retirement portfolio. GUARANTEED TIAA Traditional Annuity (Guaranteed Annuity)* N/A MONEY MARKET CREF Money Market Account R2 (Variable Annuity) QCMMPX Vanguard Federal Money Market Inv VMFXX FIXED INCOME (BONDS) BlackRock Total Return K MPHQX Templeton Global Bond R6 FBNRX Vanguard Inflation-Protected Secs Adm VAIPX Vanguard Total Bond Market Index Adm VBTLX MULTI-ASSET CREF Social Choice Account R2 (Variable Annuity) QCSCPX TIAA-CREF Lifecycle 2010 Premier TCTPX TIAA-CREF Lifecycle 2015 Premier TCFPX TIAA-CREF Lifecycle 2020 Premier TCWPX TIAA-CREF Lifecycle 2025 Premier TCQPX TIAA-CREF Lifecycle 2030 Premier TCHPX TIAA-CREF Lifecycle 2035 Premier TCYPX TIAA-CREF Lifecycle 2040 Premier TCZPX TIAA-CREF Lifecycle 2045 Premier TTFPX TIAA-CREF Lifecycle 2050 Premier TCLPX TIAA-CREF Lifecycle 2055 Premier TTRPX TIAA-CREF Lifecycle 2060 Premier TLXPX TIAA-CREF Lifecycle Retire Inc Premier TPILX REAL ESTATE TIAA Real Estate Account (Variable Annuity) QREARX EQUITIES (STOCKS) American Funds EuroPacific Growth R5 RERFX CREF Stock Account R2 (Variable Annuity) QCSTPX Oppenheimer Developing Markets I ODVIX T. Rowe Price Blue Chip Growth TRBCX T. Rowe Price Equity Income PRFDX T. Rowe Price Mid-Cap Growth RPMGX T. Rowe Price New Horizons PRNHX T. Rowe Price Small-Cap Stock OTCFX TIAA-CREF Mid-Cap Value Premier TRVPX Vanguard Developed Markets Idx Admiral VTMGX Vanguard Extended Market Idx Adm VEXAX Vanguard Institutional Index I VINIX All investment options have expenses and other fees, and some investment options may also have redemption fees. To learn more about the new investment options and fees, 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 Teachers Insurance and Annuity Association of America are subject to its claims-paying ability. 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. 3 Questions? Call or visit TIAA.org/providencecollege

5 Current vs. new investment menu Closed investment options Current balances and future contributions will be directed as shown below. Current investment option Ticker Replacement investment option Ticker Oppenheimer Developing Markets Y ODVYX Oppenheimer Developing Markets I ODVIX T. Rowe Price Capital Appreciation PRWCX Age-Related TIAA-CREF Lifecycle Fund Premier Various T. Rowe Price Global Growth Stock RPGEX Age-Related TIAA-CREF Lifecycle Fund - Premier Various T. Rowe Price GNMA PRGMX Age-Related TIAA-CREF Lifecycle Fund Premier Various T. Rowe Price High Yield PRHYX Age-Related TIAA-CREF Lifecycle Fund Premier Various T. Rowe Price Inflation Protected Bd PRIPX Vanguard Inflation-Protected Secs Adm VAIPX T. Rowe Price New Income PRCIX BlackRock Total Return K MPHQX T. Rowe Price Real Estate TRREX Age-Related TIAA-CREF Lifecycle Fund Premier Various T. Rowe Price Short-Term Bond PRWBX Age-Related TIAA-CREF Lifecycle Fund Premier Various Templeton Global Bond Adv TGBAX Templeton Global Bond R6 FBNRX Vanguard 500 Index Admiral VFIAX Vanguard Institutional Index I VINIX Restricted investment options Future contributions will be directed as shown below. Current balances will remain in the restricted investment options. Current restricted investment option Ticker Replacement investment option Ticker CREF Bond Market Account R2 (Variable Annuity) QCBMPX BlackRock Total Return K MPHQX CREF Equity Index Account R2 (Variable Annuity) QCEQPX Vanguard Institutional Index I VINIX CREF Global Equities Account R2 (Variable Annuity) QCGLPX Age-Related TIAA-CREF Lifecycle Fund Premier Various CREF Growth Account R2 (Variable Annuity) QCGRPX T. Rowe Price Blue Chip Growth TRBCX CREF Inflation-Linked Bond Account R2 (Variable Annuity) QCILPX Vanguard Inflation-Protected Secs Adm VAIPX What are lifecycle funds? A 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 retirement date approaches. The principal value of a lifecycle fund isn t guaranteed at any time and will fluctuate with market changes. The target date represents an approximate date when investors may plan to begin withdrawing from the fund. However, you are not required to withdraw the funds at that target date. Also, please note that the lifecycle fund is selected for you based on your projected retirement date (assuming a retirement age of 65). Questions? Call or visit TIAA.org/providencecollege 4

6 Q&A 1. Why is Providence College updating the Providence College Retirement Plans? Providence College is committed to providing you with competitive retirement benefits and recently conducted a review of the retirement plans. The resulting updates 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/providencecollege 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 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. You may bring anyone you like to your session with you. 5. How do lifecycle funds work? Each lifecycle 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. continued 5 Questions? Call or visit TIAA.org/providencecollege

7 Q&A continued 6. What else should I know about lifecycle funds 1? 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 indicates when investors may plan to start making withdrawals. However, you are not required to withdraw your money at the target date. A TIAA financial consultant can help you decide whether a target-date fund is right for you. 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. 7. What happens to my current account balances and future contributions? If you do not provide investment instructions, all future contributions and mutual fund balances will be directed to the replacement options, according to the chart on page 4 of the guide. Any annuity account balances will remain in the current investment options, unless otherwise directed by you. Any guarantees under annuities issued by TIAA are subject to TIAA's claims-paying ability. Payments from the variable accounts will rise or fall based on investment performance. 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. Payments from the variable annuity accounts are not guaranteed and will rise or fall based on investment performance. (It is possible to lose money in variable annuities.) For more information on annuities in employersponsored retirement plans see: TIAA.org/public/offer/ products/annuities/retirement-plan-annuities. 8. 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 retirement products that can guarantee to pay you (or you and a spouse or partner) income for life. 1 A 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 retirement date approaches. The principal value of a lifecycle fund isn t guaranteed at any time and will fluctuate with market changes. 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 target-date funds, there is exposure to the fees and expenses associated with the underlying mutual funds as well. The target date represents an approximate date when investors may plan to begin withdrawing from the fund. However, you are not required to withdraw the funds at that target date. Also, please note that the lifecycle fund is selected for you based on your projected retirement date (assuming a retirement age of 65). 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. Questions? Call or visit TIAA.org/providencecollege 6

8 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. Distribution 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. Investment products may be subject to market and other risk factors. See the applicable product literature or visit TIAA.org/providencecollege for details. You should consider the investment objectives, risks, charges and expenses carefully before investing. Please call or go to TIAA.org/providencecollege 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 MT (05/18)