New opportunities for your retirement strategy. Announcing changes to the University of Dayton Retirement Plans

Transcription

1 New opportunities for your retirement strategy Announcing changes to the University of Dayton Retirement Plans

2 Table of contents A new chapter is about to start 1 Your new investment options 2-3 If you currently are a TIAA participant 4-5 Transfer chart for TIAA participants 5-6 If you currently are a Fidelity participant Transfer chart for Fidelity participants Retirement plan investment advice Choose your investment path 11 New TIAA Brokerage option 12 On-campus events 13 Understanding retirement plan fees 14 Q&A We re here to help Questions? Call or visit TIAA.org/udayton Back cover

3 A new chapter is about to start Helping you plan and save for the future is important to us here at the University of Dayton. That s why we re pleased to announce the following updates to the University of Dayton Retirement Plans. What you need to know TIAA will become the single service provider for the retirement plan(s). TIAA was selected by the University of Dayton in order to deliver comprehensive retirement services at a reasonable cost. As a result of this change, your balance currently with Fidelity will be transferred to TIAA. New investment options. The new investments, carefully selected by the Retirement Plans Committee with input, support and guidance from outside investment consultants, help give you the ability to create a diversified retirement portfolio. New Retirement Choice and Retirement Choice Plus contracts will be issued. Any balance in existing TIAA and CREF annuity contracts will remain in those existing contracts, although no new contributions, rollovers or transfers may be made to them. Lower fees. The University of Dayton has negotiated lower fees and selected investment options with a lower overall cost. New loans will be introduced. Retirement plan loans are funded from an account in your employer-sponsored retirement plan and offered with a fixed rate of interest. This new loan offering will be replacing current collateralized loans offered. Retirement Plan Portfolio Manager (RPPM). A service designed to monitor your retirement account so you don t have to do all the work. Known as a managed account, this service gives you professional oversight and a systematic, disciplined approach to managing your money. 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 option. If you would like to have access to more investment choices, the University of Dayton is adding a Brokerage option to the retirement plans. Please note: The University of Dayton will not monitor the performance of the funds in your personal brokerage account, and TIAA does not offer investment advice for brokerage balances. Blackout Period for Fidelity balances. To facilitate a smooth transfer of current investment balances to TIAA, a brief Blackout Period will take place. During this time, you will not be able to change your investment choices, affect loans, make withdrawals or transfer funds. The Blackout Period applies to balances currently invested at Fidelity. Please review the enclosed Blackout Notice for additional details. Any scheduled payroll contributions will continue to be deducted from your paycheck and invested during the Blackout Period. No longer employed by the University of Dayton? You are receiving this guide because you have investments in one or more of the University of Dayton Retirement Plans. Even though you are not actively contributing and actions may not be required, you should review this information carefully to learn how your account could be affected. Retirement plan updates start March 30, 2018 Key dates March 30 April 6 Beginning the week of April 11 April 16 at 4 p.m. (ET) April 24 Beginning the week of May 7 May 7 Events You will be enrolled in a new TIAA contracts and receive a confirmation kit with important information on making the most of your participation with TIAA. Your new contracts with TIAA receive their first payroll contribution. On-site seminars and information desk begin. Blackout Period expected to begin for Fidelity participants. See accompanying notice for details. On or about this date, account balances transfer from Fidelity to TIAA. TIAA becomes the single service provider for the retirement plans. Please note: The date of the transfer depends on the accurate, timely transfer of data and assets from Fidelity to TIAA. If this does not occur, the transfer could be delayed. Retirement plan investment advice is now available online, by phone or in person through a one-on-one advice session. Blackout Period for Fidelity participants expected to end. You can now access and update your entire retirement account at TIAA, including balances transferred from Fidelity. Please note: The end of the Blackout Period depends on the accurate, timely transfer of data from Fidelity to TIAA. If this does not occur, the end of the Blackout Period could be delayed. Questions? Call or visit TIAA.org/udayton 1

4 Your new investment options These new choices may offer you more flexibility to create a diversified 1 retirement portfolio. GUARANTEED* TICKER SYMBOL MORNINGSTAR CATEGORY TIAA Traditional Annuity (Guaranteed Annuity)* N/A Capital Preservation MONEY MARKET TICKER SYMBOL Vanguard Federal Money Mkt Investor VMFXX Capital Preservation FIXED INCOME (BONDS) TICKER SYMBOL AB Global Bond Z ANAZX World Bond CREF Inflation-Linked Bond Account R2 (Variable Annuity) QCILPX Inflation-Protected Bond Metropolitan West Total Return Bond I MWTIX Intermediate-Term Bond Prudential High Yield Q PHYQX High Yield Bond MULTI-ASSET TICKER SYMBOL TIAA-CREF Lifecycle 2060 Institutional TLXNX Asset Allocation/Target Date TIAA-CREF Lifecycle 2055 Institutional TTRIX Asset Allocation/Target Date TIAA-CREF Lifecycle 2050 Institutional TFTIX Asset Allocation/Target Date TIAA-CREF Lifecycle 2045 Institutional TTFIX Asset Allocation/Target Date TIAA-CREF Lifecycle 2040 Institutional TCOIX Asset Allocation/Target Date TIAA-CREF Lifecycle 2035 Institutional TCIIX Asset Allocation/Target Date TIAA-CREF Lifecycle 2030 Institutional TCRIX Asset Allocation/Target Date TIAA-CREF Lifecycle 2025 Institutional TCYIX Asset Allocation/Target Date TIAA-CREF Lifecycle 2020 Institutional TCWIX Asset Allocation/Target Date TIAA-CREF Lifecycle 2015 Institutional TCNIX Asset Allocation/Target Date TIAA-CREF Lifecycle 2010 Institutional TCTIX Asset Allocation/Target Date TIAA-CREF Lifecycle Retirement Income Institutional TLRIX Asset Allocation/Target Date CREF Social Choice Account R2 (Variable Annuity) QCSCPX Asset Allocation/Risk Based T. Rowe Price Capital Appreciation I TRAIX Asset Allocation/Risk Based Vanguard Wellesley Income Admiral VWIAX Asset Allocation/Risk Based REAL ESTATE TICKER SYMBOL TIAA Real Estate Account (Variable Annuity) QREARX Real Estate continued See details about the new investment options online at TIAA.org/udayton. Click on Investment Options, then select View All Investments to view the individual investment information. 1 Diversification is a technique used to help reduce risk. It is not guaranteed to protect against loss. * 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 (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. Investment products may be subject to market and other risk factors. See the applicable product literature, or visit TIAA.org/udayton 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/udayton

5 Your new investment options continued EQUITIES (STOCKS) TICKER SYMBOL MORNINGSTAR CATEGORY American Funds New World R6 RNWGX International/Global American Funds New Perspective R6 RNPGX International/Global CREF Stock Account R2 (Variable Annuity) QCSTPX International/Global MFS International Value R6 MINJX International/Global Vanguard FTSE All-World ex-us Index Fund Admiral VFWAX International/Global MassMutual Select Blue Chip Growth I MBCZX Large Cap CREF Growth Account R2 (Variable Annuity) QCGRPX Large Cap T. Rowe Price Dividend Growth I PDGIX Large Cap Vanguard 500 Index Admiral VFIAX Large Cap Vanguard Equity Income Admiral VEIRX Large Cap Eaton Vance Atlanta Capital SMID Cap R6 ERASX Mid Cap Carillon Scout Mid-Cap R6 CSMUX Mid Cap Vanguard Mid-Cap Index Institutional VMCIX Mid Cap JPMorgan Mid-Cap Value L FLMVX Mid Cap Janus Henderson Triton N JGMNX Small Cap TIAA-CREF Small-Cap Equity Institutional TISEX Small Cap Vanguard Small-Cap Index Admiral VSMAX Small Cap Undiscovered Managers Behavioral Val R6 UBVFX Small Cap BROKERAGE SERVICES See page 12. Self-Directed Brokerage Window Questions? Call or visit TIAA.org/udayton 3

6 If you currently are a TIAA participant Enrollment with new contracts You will be enrolled in new Retirement Choice (RC) and Retirement Choice Plus (RCP) contracts on March 30, 2018, and sent an enrollment confirmation. Your current beneficiary designation(s) will be applied to your new contract(s). How your future contributions and current account balances will be affected Beginning April 6, 2018, your future contributions will be directed to your new account and the new investment options. The week of April 16, 2018, your current mutual fund balance(s) are scheduled to be transferred to your new Retirement Choice and/or Retirement Choice Plus contracts. Your contributions and balance(s) will be invested as shown on the next page. Any annuity balance(s) you have with TIAA will remain in your existing contract(s), although no new contributions, rollovers or transfers may be made to these contracts. You will only be permitted to transfer balances among CREF Money Market Account, CREF Stock Account and TIAA Traditional Annuity. If you would like to transfer balances to your new contracts, contact a TIAA financial consultant for more information. Understanding your new account(s) There are a number of differences between your Retirement Annuity, Supplemental Retirement Annuity, Group Retirement Annuity, 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 and 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/udayton. If you have questions, call Changes to the retirement plans investment lineup The University of Dayton is taking this opportunity to change the investment options available through the plans. The new investments, carefully selected the Retirement Plans Committee with input, support and guidance from outside investment consultants, help give you the ability to create a diversified retirement portfolio that matches your investment goals and preferences. See the next page for more details about these changes. The University of Dayton will remove several investment options from the lineup and replace them with new options. The University of Dayton will also restrict several investment options and they will no longer accept new money. Future contributions will be directed to replacement options. See the following page for more details about these changes. Choosing different investments You may transfer account balances and/or change the way future contributions are directed once your new contracts are issued on March 30, * Guarantees are subject to Teachers Insurance and Annuity Association of America'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. 4 Questions? Call or visit TIAA.org/udayton continued

7 If you currently are a TIAA participant continued In-kind fund transfers On or about April 24, 2018, TIAA will transfer those existing retirement plan investment options that are being retained as part of the new University of Dayton investment lineup in-kind as shown below. An in-kind balance transfer means your mutual fund holdings will not be sold and repurchased; these holdings will simply transfer and remain fully invested during this period. Action steps 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. Select investments. Once your new contracts are issued, you can update your investment choices for future contributions. Check your beneficiary designation. TIAA will copy the beneficiary information you currently have on file to your new account. Since it s important to keep your beneficiary information up to date, please confirm your choice(s) by reviewing them online at TIAA.org/udayton. Attend a seminar. Find out about the retirement plan changes and steps you may wish to take. See page 13. Schedule an individual counseling session. Schedule a session by calling or at TIAA.org/schedulenow. Transfer chart for TIAA participants The chart below shows how the University of Dayton will direct future mutual fund contributions and current account balances to the new replacement investment options. Current TIAA investment option Ticker New replacement option Ticker TIAA-CREF International Equity Institutional TIIEX MFS International Value R6 MINJX TIAA-CREF Social Choice Equity Institutional TISCX T. Rowe Price Dividend Growth I PDGIX TIAA-CREF Large-Cap Value Institutional TRLIX Vanguard Equity Income Admiral VEIRX TIAA-CREF Mid-Cap Growth Institutional TRPWX Eaton Vance Atlanta Capital SMID Cap R6 ERASX TIAA-CREF Mid-Cap Value Institutional TIMVX Vanguard Mid Cap Index Institutional VMCIX The chart below shows how the University of Dayton will direct future contributions allocated to the restricted annuities to new replacement investment options. TIAA restricted investments Ticker Future allocations directed here Ticker CREF Bond Market Account R2 (Variable Annuity) QCBMPX Metropolitan West Total Return Bond I MWTIX CREF Money Market Account R2 (Variable Annuity) QCMMPX Vanguard Federal Money Market Investor VMFXX CREF Global Equities Account R2 (Variable Annuity) QCGLPX American Funds New Perspective R6 RNPGX CREF Equity Index Account R2 (Variable Annuity) QCEQPX Vanguard 500 Index Admiral VFIAX Investment options in bold are new to the University of Dayton menu. continued Questions? Call or visit TIAA.org/udayton 5

8 Transfer chart for TIAA participants continued In-kind fund transfers On or about April 24, 2018, TIAA will transfer those existing retirement plan investment options that are being retained as part of the new University of Dayton investment lineup in-kind as shown below. An in-kind balance transfer means your mutual fund holdings will not be sold and repurchased; these holdings will simply transfer and remain fully invested during this period. In-kind CREF Inflation-Linked Bond Account R2 (Variable Annuity) CREF Social Choice Account R2 (Variable Annuity) CREF Stock Account R2 (Variable Annuity) TIAA Real Estate Account (Variable Annuity) TIAA Traditional Annuity (Guaranteed Annuity) 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 TIAA-CREF Lifecycle Retirement Income Institutional TIAA-CREF Small-Cap Equity Institutional Vanguard Federal Money Mkt Investor Ticker QCGRPX QCILPX QCSCPX QCSTPX QREARX N/A TCTIX TCNIX TCWIX TCYIX TCRIX TCIIX TCOIX TTFIX TFTIX TTRIX TLXNX TLRIX TISEX VMFXX Action steps 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. Select investments. Once your new contracts are issued, you can update your investment choices for future contributions. Check your beneficiary designation. TIAA will copy the beneficiary information you currently have on file to your new account. Since it s important to keep your beneficiary information up to date, please confirm your choice(s). Attend a seminar. Find out about the retirement plan changes and steps you may wish to take. See page 13. Schedule an individual counseling session. Schedule a session by calling or at TIAA.org/schedulenow. 6 Questions? Call or visit TIAA.org/udayton

9 If you currently are a Fidelity participant Enrollment You will be enrolled in new TIAA contracts on March 30, 2018, and sent an enrollment confirmation kit with important information on making the most of your participation with TIAA. Your beneficiary designation will be set to "Estate". How your future contributions and current account balances will be affected On or about April 24, 2018, your current account balance(s) with Fidelity are scheduled to be transferred to your new TIAA accounts. Your contributions and balance(s) will be transferred as shown on the next page. Changes to the retirement plans investment lineup The University of Dayton is taking this opportunity to change the investment options available through the plans. The new investments, carefully selected by the Retirement Plans Committee with input, support and guidance from outside investment consultants, help give you the ability to create a diversified retirement portfolio that matches your investment goals and preferences. See the next page for more details about these changes. Because of the investment consolidation from Fidelity to TIAA, the Plans' default investment option will be the TIAA-CREF Lifecycle Fund series. Each lifecycle fund provides a diversified retirement portfolio in a single fund. Blackout Period To help ensure the smooth transfer of account balance(s) from Fidelity, there will be a brief Blackout Period. During this time, you will not be able to perform transactions (e.g., change investments, make withdrawals, take a loan, transfer funds, etc.). The Blackout Period is expected to begin at Fidelity on or around April 16, 2018, at 4 p.m. (ET). Please note: The date of the plan changes and the end of the Blackout Period depend on the accurate, timely transfer of data from Fidelity to TIAA. If this does not occur, the end of the Blackout Period could be delayed. Payroll contributions to the University of Dayton Retirement Plans will continue to be withheld and invested during the Blackout Period. See the enclosed Blackout Notice for more details. Choosing different investments You can change the way future contributions are directed once your new accounts are issued on March 30, How your account balance(s) will transfer Your account balance(s) will move from Fidelity to the TIAA platform following a fund-to-fund transfer process. This process directs balances and contributions to a replacement fund on the new TIAA menu as shown in the transfer chart on the next page. Account balance(s) from Fidelity will be applied to the new investment option(s) as of 4 p.m. (ET) on the date the balance(s) are received in accurate and complete order. Your account will not be invested in the new funds for at least one business day. You ll receive two confirmations: One from Fidelity showing the transfer out of your account and a second from TIAA showing the balance(s) applied to your new TIAA accounts. Please note: Any balance(s) directed to a Vanguard Target Retirement Fund will be transferred first to the Vanguard Federal Money Market Fund (VMFXX). Once the information is received from Fidelity, TIAA will then transfer the balance(s) from the Vanguard Federal Money Market Fund to the age-appropriate TIAA-CREF Lifecycle Fund. Because of this, you ll receive three confirmations: one from Fidelity showing the transfer out of your account, one from TIAA for the transfer to the Vanguard Federal Money Market Fund, and another one from TIAA for the transfer to the ageappropriate TIAA-CREF Lifecycle Fund. Questions? Call or visit TIAA.org/udayton 7

10 Transfer chart for Fidelity participants Current Fidelity Fund lineup Ticker Replacement investment option Ticker Carillon Scout Mid Cap I UMBMX Carillon Scout Mid Cap R6 CSMUX Eagle Small Cap Growth R6 HSRUX Janus Henderson Triton N JGMNX Fidelity Contrafund K FCNKX MassMutual Select Blue Chip Growth I MBCZX Fidelity Growth Company K FGCKX MassMutual Select Blue Chip Growth I MBCZX Fidelity Small Cap Value FCPVX Undiscovered Managers Behavioral Val R6 UBVFX JPMorgan Disciplined Equity R6 JDEUX T. Rowe Price Dividend Growth I PDGIX Oppenheimer Developing Markets I ODVIX American Funds New World R6 RNWGX PIMCO Real Return Institutional l PRRIX CREF Inflation-Linked Bond Account R2 (Variable Annuity) QCILPX Pioneer Strategic Income K STRKX Metropolitan West Total Return Bond I MWTIX Templeton Global Bond R6 FBNRX AB Global Bond Z ANAZX Vanguard Mid Cap Index Admiral VIMAX Vanguard Mid Cap Index Institutional VMCIX Vanguard Target Retirement 2015 Investor VTXVX TIAA-CREF Lifecycle 2015 Institutional TCNIX Vanguard Target Retirement 2020 Investor VTWNX TIAA-CREF Lifecycle 2020 Institutional TCWIX Vanguard Target Retirement 2025 Investor VTTVX TIAA-CREF Lifecycle 2025 Institutional TCYIX Vanguard Target Retirement 2030 Investor VTHRX TIAA-CREF Lifecycle 2030 Institutional TCRIX Vanguard Target Retirement 2035 Investor VTTHX TIAA-CREF Lifecycle 2035 Institutional TCIIX Vanguard Target Retirement 2040 Investor VFORX TIAA-CREF Lifecycle 2040 Institutional TCOIX Vanguard Target Retirement 2045 Investor VTIVX TIAA-CREF Lifecycle 2045 Institutional TTFIX Vanguard Target Retirement 2050 Investor VFIFX TIAA-CREF Lifecycle 2050 Institutional TFTIX Vanguard Target Retirement 2055 Investor VFFVX TIAA-CREF Lifecycle 2055 Institutional TTRIX Vanguard Target Retirement 2060 Investor VTTSX TIAA-CREF Lifecycle 2060 Institutional TLXNX Vanguard Target Retirement Income Investor VTINX TIAA-CREF Lifecycle Retirement Income Institutional TLRIX Vanguard Total Stock Market Index Admiral VTSAX Vanguard 500 Index Admiral VFIAX Self-Directed Brokerage Account Option TIAA Self-Directed Brokerage Account option Participants in the Fidelity Brokerage option will need to complete necessary paperwork to establish the TIAA Self-Directed Brokerage Account. If not established, the participant's balances will default to the age-appropriate TIAA-CREF Lifecycle Fund. Investment options in bold are new to the University of Dayton menu. continued 8 Questions? Call or visit TIAA.org/udayton

11 Transfer chart for Fidelity participants continued In-kind fund transfers On or about April 24, 2018, TIAA will transfer those existing retirement plan investment options that are being retained as part of the new University of Dayton investment lineup in-kind as shown below. An in-kind balance transfer means your mutual fund holdings will not be sold and repurchased; these holdings will simply transfer and remain fully invested during this period. Fidelity in-kind transfers Ticker RNPGX Eaton Vance Atlanta Capital SMID Cap R6 ERASX JPMorgan Mid Cap Value L FLMVX Metropolitan West Total Return Bond I MWTIX MFS International Value R6 MINJX Prudential High Yield Q PHYQX T. Rowe Price Capital Appreciation I TRAIX Vanguard Equity Income Admiral VEIRX Vanguard FTSE All-World ex-us Index Admiral VFWAX Vanguard Small Cap Index Admiral VSMAX Vanguard Wellesley Income Admiral VWIAX Vanguard Federal Money Market Investor VMFXX Action steps Get advice. Has it been awhile 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. Select investments. Once your new accounts are issued, you can update your investment choices for future contributions. Name your beneficiary. Your beneficiary designation will be set to Estate. Naming a beneficiary is an important aspect of managing your retirement account. Please complete this task at your earliest convenience. 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. Visit TIAA.org/udayton to set up your beneficiaries. Attend a seminar. Find out about the retirement plan changes and steps you may wish to take. See page 13. Schedule an individual counseling session. Schedule a session by calling or at TIAA.org/schedulenow. Questions? Call or visit TIAA.org/udayton 9

12 Retirement plan investment advice 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. How to access TIAA s advice Online 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 Receive personalized retirement plan investment advice either over the phone or in person. Schedule your advice session by calling , weekdays, 8 a.m. to 8 p.m. (ET). You can also schedule online at TIAA.org/schedulenow. 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. 10 Questions? Call or visit TIAA.org/udayton

13 Choose your investment path Option 1: Selecting a lifecycle fund A diversified retirement portfolio in a single fund of funds How do lifecycle funds work? Each 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 are some other considerations? As with all mutual funds, the principal value of a lifecycle fund isn t guaranteed at any time and will fluctuate with the market. 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 financial consultant can help you decide whether a lifecycle 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 investment paths. * 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/udayton 11

14 New TIAA Brokerage option Before investing in a brokerage account, consider contacting TIAA to learn more. Learn more about a brokerage account* by contacting us at , weekdays, 8 a.m. to 7 p.m. (ET). Access thousands of mutual funds and many well-known fund families beyond the core investment options. 1 For investors with specialized investing needs, more choices can mean more opportunity to direct retirement investments across markets and asset classes outside of your plan s core lineup. With your brokerage account, you can independently research and select from thousands of mutual funds. It s important to understand that the University of Dayton 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. The University of Dayton recommends that you exercise caution and consider seeking professional guidance when investing through a TIAA Brokerage Account. 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/SDA_CAA. Other fees and expenses apply to a continued investment in the funds and are described in the fund s current prospectus. 12 Questions? Call or visit TIAA.org/udayton

15 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 University of Dayton Retirement Plans at the following dates and times: Date Time Location Wednesday, April 11 9 a.m. 11 a.m. Torch Lounge Wednesday, April 11 2 p.m. 4 p.m. Kennedy Union 310 Thursday, April 12 9 a.m. 11 a.m. 2 p.m. 4 p.m. Torch Lounge Thursday, April 12 1 p.m. 3 p.m. Hope Hotel & Richard C. Holbrooke Conference Center Super-Flying Fortress room Chidlaw Road, Bldg #823, Area A, Gate 12A Wright Patterson Air Force Base, Ohio Friday, April 13 9 a.m. 11 a.m South Patterson Room S1050 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. Date Time Location Monday, May 7 9 a.m. 5 p.m. Kennedy Union 313 Tuesday, May 8 9 a.m. 5 p.m. St. Mary's 305 Wednesday, May 9 9 a.m. 5 p.m. St. Mary's 305 Thursday, May 10 9 a.m. 5 p.m. Kennedy Union 313 Monday, May 14 9 a.m. 5 p.m. Kennedy Union 313 Tuesday, May 15 9 a.m. 5 p.m. Kennedy Union 313 Questions? Call or visit TIAA.org/udayton 13

16 Understanding retirement plan fees When making decisions about your University of Dayton Retirement Plans account, it s important to know there are fees associated with many of the plans 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. Please know that there have always been costs to participate in the program. A recent change impacts how your plan administration costs will be assessed. Plan Servicing Fee* Your account is assessed an annual Plan Servicing Fee to cover items such as recordkeeping, legal, accounting, investment advisory and other plan and participant services. Effective April 6, 2018, the annual fee is $70, which will be divided into quarterly payments, and may be deducted from your account accordingly. However, the Plan Services Fee may also be paid through offsets and/or payments associated with one or more of the Plans Investment options. If any Plan Servicing Fee is deducted directly from your account, it will be reflected on your plan account statement as TIAA Plan Servicing Fee. 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/SDA_CAA 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. Loan issuance fee This one-time fee is deducted directly from your account at the time a loan is issued. A loan issuance fee would apply if you choose a general purpose Retirement Plan Loan (RPL) and/or primary residence RPL within the University of Dayton Retirement Plans. The costs of these loans are $75 per loan for a general purpose loan and $125 per loan for a residential loan. 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. Investment-specific services Each of the plans 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 would pay $5 annually for every $1,000 in assets. Taking the expense ratio into consideration helps you to compare investment fees so you can make informed investment decisions. You can find the expense ratios, as well as investment-specific purchase, withdrawal and redemption fees and expenses at TIAA.org/udayton or in the prospectus at TIAA.org/ performance. * Please note: 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. 14 Questions? Call or visit TIAA.org/udayton

17 Q&A 1. Why is the University of Dayton updating the retirement plans? The University of Dayton is committed to providing you with competitive retirement benefits and recently conducted a review of the retirement plan. The resulting changes are intended to give you the investments, services and tools you need to pursue your retirement savings goals within one comprehensive platform. 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/udayton 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 systematic withdrawal, TPA (transfer payout annuity), or required minimum distribution? You will receive separate communications if any actions are required on your part. 6. What are retirement plan loans? Retirement plan loans are funded from an account in your employer-sponsored retirement plan and offered with a fixed rate of interest. Principal and interest are paid back to your retirement account based on the investment allocation for your contributions; if there is not an allocation on file, the repayment is paid to a default investment option selected by the plan for loan repayments. Retirement plan loans are available in two types a conventional loan or a primary residence loan. The standard TIAA offering will be replacing current collateralized loans. Loans are available only from your contributions to the plan. 7. 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. Questions? Call or visit TIAA.org/udayton 15

18 Q&A 8. What else should I know about lifecycle funds? 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. 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 lifecycle fund is right for you. 9. Does it make sense to consolidate my retirement accounts? Many people find it easier to manage their retirement money by working with only one provider. That said, transferring balances can sometimes trigger costs. Before consolidating outside retirement balances, check with your employee benefits office to see if you can transfer those balances directly to your TIAA 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. Weigh the advantages and disadvantages of each option carefully, including 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 before consolidating balances. 10. Can I move money from an existing TIAA account to a new one? Yes, but it s a move you ll want to weigh carefully. You may move money out of your existing TIAA contracts to the new contracts, subject to any restrictions that apply to the investments. However, any money that you move out of your existing contract(s) cannot be moved back into them. Money in the TIAA Traditional Annuity deserves special attention. For instance, money moved out of TIAA Traditional in the existing contracts will no longer receive the 3% minimum guaranteed rate. In short, the pros and cons are different for every participant. To learn more about TIAA Traditional, liquidity rules, and the differences between RC and RCP contracts, please see the Contract Comparison chart at TIAA.org/comparison or contact TIAA at What if I am splitting my contributions among Fidelity and TIAA? Effective April 6, 2018, future contributions will be directed to TIAA and invested according to the transfer chart for those balances, if applicable. You may change your allocation during the open election window starting March 30, 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. It is possible to lose money in variable annuities. In retirement, variable annuities can provide an income stream that is guaranteed to last for your lifetime, but the actual amount will rise or fall based on investment performance. For more information on annuities in employer-sponsored retirement plans see: TIAA.org/public/offer/products/ annuities/retirement-plan-annuities. 1 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 lifestyle 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. 16 Questions? Call or visit TIAA.org/udayton

19 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/udayton 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, 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. TIAA Brokerage, a division of TIAA-CREF Individual & Institutional Services, LLC, Member FINRA/SIPC, distributes securities. Brokerage accounts are carried by Pershing, LLC, a subsidiary of The Bank of New York Mellon Corporation, Member FINRA, NYSE, SIPC Teachers Insurance and Annuity Association of America-College Retirement Equities Fund, 730 Third Avenue, New York, NY Questions? Call or visit TIAA.org/udayton 17

20 We re here to help Not sure where to begin? Let us help you take the next step! In person Phone Online 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, call TIAA at , weekdays, 8 a.m. to 10 p.m. (ET), and Saturday, 9 a.m. to 6 p.m. (ET). Manage your account online by going to TIAA.org/udayton 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 (02/18)