Greater confidence about retirement starts today. The New ASME Retirement Plan

Transcription

1 Greater confidence about retirement starts today The New ASME Retirement Plan

2 A new chapter is about to start What you need to know 1. New 401(k) Plan. Effective January 3, 2017, ASME will offer a new ASME 401(k) Retirement Plan. 2. Changes to current plans. Effective January 3, 2017, ASME will make changes to the ASME DC Pension 403(b) plan and the ASME Thrift Savings DC 403(b) plan. 3. New investment options. The new investments, carefully selected by ASME for its employees, may give you the ability to create a diversified retirement portfolio that matches your investment goals and preferences. 4. New Retirement Choice (RC) and Retirement Choice Plus (RCP) contracts will be issued. Your new 401(k) Plan will require that you are issued two new contracts with TIAA; one for your contributions and one for ASME contributions. New contracts will offer ASME flexibility for future enhancements to your plan. 5. Future Contributions and Current Assets. You will need to take action to make investment selections for the new plan. If you do not make a selection, you will be defaulted into the plan s default investment. See page 1 for more details. 6. Contribution Election. You will need to take action to make a new election for your deferral percentage in the new 401(k) plan. If you do not make an election, you will be defaulted at a 2% contribution rate into the new 401(k) Plan. Retirement plan changes Key dates Beginning week of December 5, 2016 Week of December 12, 2016 On or after December 15, 2016 January 3, 2017 On or about January 12, 2017 Beginning week of January 17, 2017 Event On-site seminars and information desks begin. New dedicated retirement plan website is available at TIAA.org/ASME. You will be enrolled in a TIAA account and receive a confirmation kit with important information on making the most of your participation with TIAA. Open Investment Election Period starts. Changes take effect. All contributions will be directed to your new accounts. Your new account receives the first payroll contribution. Retirement plan investment advice is now available online. Questions? Call or visit TIAA.org/asme

3 In Detail 1. New 401(k) Retirement Plan Effective January 3, 2017, ASME will offer a new ASME 401(k) Retirement Plan. 2. Changes to Current Plans Effective January 3, 2017, your current ASME 403(b) plans will no longer accept new contributions. This means all contributions going forward cannot be applied to the current 403(b) plan. The new investment options however, will be added to the current 403(b) plans and will be available for existing assets in the plan. 3. New Investment Options Effective January 3, 2017, a diverse variety of investment options including Money Market, Fixed Income (Bonds), Multi-Asset, and Equities (Stocks), will be available in the ASME Retirement Plans. Many of the options offered in the Plans will be lower cost as compared to options previously available in the 403(b) plans. 4. New Retirement Choice (RC) and Retirement Choice Plus (RCP) Annuity contracts will be used for future contributions. The new contracts offer ASME flexibility for future enhancements to your plan. With the addition of new contracts, on or around the week of December 15, 2016, you will receive an Enrollment Kit from TIAA that will provide additional information about your new contracts investment options, as well as instructions on how to update your personal information, your investment choices and your beneficiary designation. The guaranteed minimum interest rate for TIAA Traditional is different under the RC and the RCP contracts. 1 Any balances you have in TIAA Traditional in your GRA, SRA and GSRA account(s) will continue to earn at least 3%, which is the minimum guaranteed, and any additional amounts will be credited for as long as the assets remain in those accounts. Under the RC and RCP contract(s), TIAA Traditional has a guaranteed minimum interest rate that is between 1% and 3%, determined annually. 1 This adjustable guaranteed minimum interest rate allows TIAA to be more responsive to the prevailing interest rate environment, and provides the potential for higher total 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 contracts. Please note that additional amounts are not guaranteed. Please go to TIAA.org/contractcomparison for all of the details. You can also review the different benefits and features in your plan s contracts, with a TIAA consultant. Please call TIAA at Future Contributions and Current Assets Future contributions: Future contributions will be directed to the new ASME 401(k) Plan. You will need to take action to make investment selections for the new plan. If you do not make a selection, you will be defaulted into the plan s default investment option, the Age-based Lifecycle Funds. (See birth chart below for details.) A Lifecycle fund is a diversified retirement portfolio in a single fund of funds. Please see page 5 for more information on Lifecycle funds and investment styles. Current Assets: For those investment options that will not be offered in the new ASME 401(k) Plan investment menu going forward, your balances will remain in the current investment option in the 403(b) plans. You may choose to move the existing assets to any of the new investment options within the 403(b) plans. Please note that no new contributions will be permitted to these restricted investment options in the old 403(b) plans. 6. Contribution Election You will need to take action to make a new election for your deferral percentage in the new 401(k) plan. You may obtain, complete and return a Salary Reduction Agreement form from the Human Resources Department. You can also complete your contribution elections online at the ASME ADP site. If you do not make an election you will be defaulted at a 2% contribution rate into the new 401(k) Plan. Please note: You will also need to take action to elect a beneficiary designation for the new 401(k) plan. If you do not make a designation, your beneficiary will be defaulted according to the plan document. Age-based Lifecycle Funds Birth year Lifecycle Fund Ticker TIAA-CREF Lifecycle 2010 Institutional TCTIX TIAA-CREF Lifecycle 2015 Institutional TCNIX TIAA-CREF Lifecycle 2020 Institutional TCWIX TIAA-CREF Lifecycle 2025 Institutional TCYIX TIAA-CREF Lifecycle 2030 Institutional TCRIX TIAA-CREF Lifecycle 2035 Institutional TCIIX TIAA-CREF Lifecycle 2040 Institutional TCOIX TIAA-CREF Lifecycle 2045 Institutional TTFIX TIAA-CREF Lifecycle 2050 Institutional TFTIX TIAA-CREF Lifecycle 2055 Institutional TTRIX 1994-current TIAA-CREF Lifecycle 2060 Institutional TLRIX 1 Any guarantees under annuities issued by TIAA are subject to TIAA s claims-paying ability. TIAA Traditional is a guaranteed insurance contract and not an investment for federal securities law purposes. Questions? Call or visit TIAA.org/asme 1

4 Your new options These new choices may offer you flexibility to create a retirement portfolio that matches your investment preferences and goals. You can see details about the new investment options online at TIAA.org/asme. Click on Investment Options and then select View All Investments to view the individual investment information. To learn more about the new investment options, go to TIAA.org and enter the ticker symbol in the site s search feature. GUARANTEED *TIAA Traditional Annuity MONEY MARKET CREF Money Market Account R2 (Variable Annuity) FIXED INCOME (BONDS) CREF Inflation-Linked Bond Account R2 (Variable Annuity) Metropolitan West Total Return Bond I Vanguard Total Bond Market Index Admiral MULTI-ASSET CREF Social Choice Account R2 (Variable 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 REAL ESTATE TIAA Real Estate Account (Variable Annuity) EQUITIES (STOCKS) CREF Growth Account R2 (Variable Annuity) CREF Stock Account R2 (Variable Annuity) Eagle Small Cap Growth R5 Goldman Sachs Small-Cap Value Institutional Hartford International Opportunities R5 JP Morgan Mid-Cap Value Institutional MassMutual Select Mid-Cap Growth Equity II R5 MFS Value R4 Vanguard 500 Index Admiral Vanguard Extended Market Index Admiral Vanguard Total International Stock Index Admiral Guaranteed Annuity QCMMPX QCILPX MWTIX VBTLX QCSCPX TCTIX TCNIX TCWIX TCYIX TCRIX TCIIX TCOIX TTFIX TFTIX TTRIX TLXNX TLRIX QREARX QCGRPX QCSTPX HSRSX GSSIX IHOTX FLMVX MGRFX MEIJX VFIAX VEXAX VTIAX continued * TIAA Traditional Annuity is a guaranteed insurance contract and not an investment for federal securities law purposes. Any guarantees under annuities issued by TIAA are subject to TIAA s claims-paying ability. Investment products may be subject to market and other risk factors. See the applicable product literature, or visit TIAA.org/asme and enter a ticker symbol in the site s search feature for details. Annuity account options are available through annuity contracts issued by TIAA or CREF. These contracts are designed for retirement or other longterm 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/asme

5 Current Investment Options These options will no longer be available for future contributions or for transfer of assets within your current 403(b) plans. You may, however, leave your existing accumulations in these options. Please view the updated investment options available to all plans on page 2. FUND NAME CREF Bond Market R2 CREF Equity Index R2 CREF Global Equities R2 TIAA Access International Equity Fund T4 TIAA Access Growth & Income Fund T4 TIAA Access Large-Cap Value Fund T4 TIAA Access Social Choice Equity Fund T4 TIAA Access Mid-Cap Growth Fund T4 TIAA Access Mid-Cap Value Fund T4 TIAA Access Small-Cap Equity Fund T4 TIAA Access Equity Index Fund T4 TIAA Access Small-Cap Blend Index Fund T4 TIAA Access Real Estate Securities Fund T4 TIAA Access Bond Fund T4 TIAA Access Inflation-Linked Bond Fund T4 TIAA Access Money Market Fund T4 TIAA Access Large-Cap Growth Fund T4 TIAA Access Bond Plus Fund T4 TIAA Access Lifecycle Fund 2010 T4 TIAA Access Lifecycle Fund 2015 T4 TIAA Access Lifecycle Fund 2020 T4 TIAA Access Lifecycle Fund 2025 T4 TIAA Access Lifecycle Fund 2030 T4 TIAA Access Lifecycle Fund 2035 T4 TIAA Access Lifecycle Fund 2040 T4 TIAA Access Lifecycle Fund 2045 T4 TIAA Access Lifecycle Fund 2050 T4 TIAA Access Lifecycle Retirement Income Fund T4 QCBMPX QCEQPX QCGLPX Questions? Call or visit TIAA.org/asme 3

6 Retirement plan investment advice How to access TIAA s advice Online Get quick, convenient answers via the Retirement Advisor online tool. Visit TIAA.org/asme, click Log In and under WHAT WE OFFER select the Retirement planning tab. By phone or in person You can receive personalized retirement plan investment advice either over the phone or in person. To schedule your advice session, call , weekdays, 8 a.m. to 8 p.m. (ET). You can also schedule online at TIAA.org/schedulenow. See on-site event opportunities including individual advice sessions on page 6. 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. 4 Questions? Call or visit TIAA.org/asme

7 What s your investment style? Do you prefer to let financial professionals make some investment decisions for you? Or do you have the desire and skills to select your own investments? Option 1: Choose a lifecycle fund A diversified retirement portfolio in a single fund of funds Option 2: Build your own portfolio If you re comfortable choosing investments, create your own portfolio How do lifecycle funds work? A lifecycle fund may be a good choice if you prefer a hands-off approach to managing your retirement portfolio. 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 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 may give you the flexibility to create a retirement portfolio that matches your investment preferences and goals. What else should I consider? As with all mutual funds, the principal value of a lifecycle fund isn t guaranteed and will fluctuate. The target date indicates when investors may plan to start making withdrawals. However, you are not required to withdraw funds at the target date. A TIAA financial consultant can help you decide whether a lifecycle fund is right for you. What else should I consider when choosing my own investments? Consider your risk tolerance when selecting investments. If you prefer to work with a financial professional, you may wish to have a TIAA financial consultant suggest a portfolio based on the options available in your retirement plan. This retirement plan investment advice is available at no extra cost. Please keep in mind that there are risks associated with investing in securities including possible loss of principal. Your retirement plan is designed to work for both types of investors. * 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/asme 5

8 On-site events Get real-time answers to your questions. Seminars (All seminars will allow for remote access.) Attend a one-hour seminar presented by a TIAA financial consultant to learn more about the changes to the ASME Retirement Plan at the following dates and times: Date Time Location Tuesday, December 6, a.m. 11 a.m. and 2 p.m. 3 p.m. NYC, Board Room Tuesday, December 13, a.m. 11 a.m. and 2 p.m. 3 p.m. New Jersey, Board Room Wednesday, December 14, a.m. 11 a.m. and 2 p.m. 3 p.m. NYC, Board Room Information desk Have just one or two questions to ask? Consider stopping by the information desk at one of the following times: Date Time Location Tuesday, December 6, p.m. 5 p.m. NYC Tuesday, December 13, a.m. 1 p.m. and 3 p.m. 5 p.m. New Jersey Wednesday, December 14, p.m. 5 p.m. NYC On-site Individual Counseling Dates (by appointment) Date Time Location Tuesday, December 6, a.m. 5 p.m. NYC Tuesday, January 10, a.m. 5 p.m. NYC Tuesday, January 17, a.m. 5 p.m. NYC Tuesday, January 24, a.m. 5 p.m. New Jersey One-on-one advice session 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. To schedule an advice session with TIAA, call , weekdays, 8 a.m. to 8 p.m. (ET) or visit TIAA.org/schedulenow. 6 Questions? Call or visit TIAA.org/asme

9 About TIAA and CREF Providing strong support on the road to retirement no matter where you are today TIAA s purpose has remained constant since TIAA was established nearly 100 years ago: We re here to help you save for and generate income during retirement. Over the years, we ve regularly enhanced the ways we deliver on our purpose. As an organization with deep roots among non-profits in higher education, government, hospital/medical, research, religious institutions and K-12 TIAA is committed to continuous learning. And when we see opportunities to enhance our retirement plan services, we share them with the institutions we serve. Not sure where to begin? Meet with us to help you take the next step! 1918 TIAA Teachers Insurance and Annuity Association of America created 1952 CREF College Retirement Equities Fund created Get personalized retirement plan advice on the plan s investment options from a TIAA financial consultant. This service is available as part of your retirement program at no additional cost to you. To schedule a session, call , weekdays, 8 a.m. to 8 p.m. (ET). You can also visit TIAA.org/schedulenow. Questions? Call or visit TIAA.org/asme 7

10 Q&A 1. Why is ASME updating the ASME Retirement Plan? ASME 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. 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/asme 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. See on-site event opportunities including individual advice sessions on page 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. Will I pay any fees to invest in the retirement plan? All investment options have expenses and other fees that can be found in the prospectuses at TIAA.org/asme or by entering the investment s ticker symbol into the search feature at TIAA.org. 6. How do lifecycle funds work? Each lifecycle fund consists of underlying mutual funds that invest in a broad range of assets. 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 asset types is adjusted to a more conservative mix. 7. What else should I know about lifecycle funds?* As with all mutual funds, the principal value of a lifecycle 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. A TIAA financial consultant can help you decide whether a lifecycle fund is right for you. 8. I am currently contributing to TIAA. What happens to my current account balances and future contributions? All assets will remain where they are. Starting January 3, 2017, you can direct any assets and future contributions to other options on the new investment menu. If no action is taken, ASME has provided instructions to invest future contributions in the lifecycle fund closest to the year you turn 65. * 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. 8 Questions? Call or visit TIAA.org/asme

11 We re here to help Not sure where to begin? Let us help you take the next step! Online Phone In person To update your account online, go to TIAA.org/asme and select Log In. If you re new to TIAA, click on Register for Access to set up online access to your account. 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. or Saturday, 9 a.m. to 6 p.m. (ET). We encourage you to schedule a one-on-one advice session. To schedule an advice session with TIAA, call , weekdays, 8 a.m. to 8 p.m. (ET) or visit TIAA.org/schedulenow. There is no additional cost to you for this service. Questions? Call or visit TIAA.org/asme 9

12 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/asme for current product and fund prospectuses that contain this and other information. Please read the prospectuses carefully before investing. TIAA-CREF Individual & Institutional Services, LLC, Teachers Personal Investors Services, Inc., and Nuveen Securities, LLC, Members FINRA and SIPC, distribute securities products. Annuity contracts and certificates are issued by Teachers Insurance and Annuity Association of America (TIAA) and College Retirement Equities Fund (CREF), New York, NY. Each is solely responsible for its own financial condition and contractual obligations Teachers Insurance and Annuity Association of America-College Retirement Equities Fund, 730 Third Avenue, New York, NY C (11/16)