Power Up Your Your guide guide to to the the upcoming upcoming NSHE NSHE Retirement Retirement Plan Plan account account consolidation consolidation at TIAA
Table of Contents Your accounts are consolidating... 2 How your TIAA mutual fund account balance(s) will transfer... 2 Vanguard target retirement investment options... 3 Choosing different investments... 4 Important information regarding TIAA annuity investment options... 5 The NSHE tiered investment menu...6-7 Personalized investment advice... 8 Understanding fees... 9 Retirement plan checklist...back Cover Get started. Call 800-842-2252 or visit TIAA.org/NSHE. 1
Get Ready YOUR ACCOUNTS ARE CONSOLIDATING The Nevada System of Higher Education (NSHE) is committed to offering you the services you need to pursue a safe and secure retirement. In January 2014, NSHE consolidated the administrative recordkeeping of its defined contribution retirement plans to TIAA. However, certain NSHE Retirement Plan assets did not transfer to the current NSHE Retirement Plan investment lineup at that time. To enrich the participant experience and reinforce oversight and monitoring, NSHE has elected to consolidate all legacy TIAA mutual fund assets to the current NSHE Retirement Plan investment lineup during the week ending March 23, 2018. Highlights: All legacy TIAA mutual fund balance(s) with TIAA will be automatically transferred into a Vanguard Target Retirement investment option at TIAA, based upon the date closest to when you turn age 65. Annuity balances with TIAA will remain in the legacy contract, although no new contributions, rollovers, or transfers may be made to these accounts. See pages 6-7 for details regarding the current investment lineup for the NSHE Retirement Plans. Be Informed How your TIAA mutual fund account balance(s) will transfer During the week ending March 23, 2018, all of the mutual fund balance(s) in the legacy TIAA contracts of the NSHE Retirement Plans are scheduled to be consolidated to the current contracts in the NSHE Retirement Plans. If you do not already have an NSHE Retirement Plan account at TIAA, you will be automatically enrolled during the week of March 5, 2018. Soon after enrollment, you will receive a confirmation kit from TIAA with important information regarding your initial investment elections and beneficiary(ies) designations. The affected TIAA mutual funds include: TIAA-CREF Lifecycle Retirement Income Fund TIAA-CREF Lifecycle Fund Series 2010 2055 TIAA-CREF International Equity Fund TIAA-CREF Large-Cap Value Fund TIAA-CREF Mid-Cap Growth Fund TIAA-CREF Mid-Cap Value Fund TIAA-CREF Small-Cap Equity Fund TIAA-CREF Money Market Fund Your mutual fund balance(s) will be automatically transferred into a Vanguard Target Retirement investment option at TIAA, based upon the date closest to when you turn age 65, as shown in the chart on page 3. For example, if you will turn age 65 in the year 2044, your balance(s) will be directed to the Vanguard Target Retirement 2045 investment option. 2 Get started. Call 800-842-2252 or visit TIAA.org/NSHE.
Vanguard Target Retirement Investment Options The table below details how your TIAA mutual fund account balance(s) will be directed automatically to NSHE s Qualified Default Investment Alternative (QDIA), which is a Vanguard Target Retirement investment option* based upon the date closest to when you turn age 65. For more information about target-date investment options, see page 6. Date of Birth Range Target Retirement Fund Ticker* Prior to 1947 Vanguard Institutional Target Retirement Income VITRX 1948 1952 Vanguard Institutional Target Retirement 2015 VITVX 1953 1957 Vanguard Institutional Target Retirement 2020 VITWX 1958 1962 Vanguard Institutional Target Retirement 2025 VRIVX 1963 1967 Vanguard Institutional Target Retirement 2030 VTTWX 1968 1972 Vanguard Institutional Target Retirement 2035 VITFX 1973 1977 Vanguard Institutional Target Retirement 2040 VIRSX 1978 1982 Vanguard Institutional Target Retirement 2045 VITLX 1983 1987 Vanguard Institutional Target Retirement 2050 VTRLX 1988 1992 Vanguard Institutional Target Retirement 2055 VIVLX 1993 1997 Vanguard Institutional Target Retirement 2060 VILVX 1998 Present Vanguard Institutional Target Retirement 2065 VSXFX * NSHE Retirement Plan Alternative (RPA) offers the Vanguard Target Retirement Trust I series. All other NSHE Retirement Plans offer the Vanguard Institutional Target Retirement Fund series. Get started. Call 800-842-2252 or visit TIAA.org/NSHE. 3
Choosing Different Investments Once the transfer is complete, you may reallocate your balance or modify your ongoing contributions to any of the other available investment options within the current investment lineup. If you do not yet have an NSHE Retirement Plan account at TIAA, you will not be able to make changes until after you have been enrolled at TIAA, which will be during the week of March 5, 2018. Working in conjunction with an independent, third-party consultant, NSHE has identified the investment options in the table below as comparable funds available on the current investment lineup. This comparison is for reference only and not a recommendation. To explore your options, schedule an appointment with a TIAA financial consultant. Visit TIAA.org/schedulenow or call 800-732-8353, weekdays, 5 a.m. to 5 p.m. (PT). As of December 31, 2017 Fund Name Ticker Expense Ratio Fund Name Ticker* Expense Ratio Asset Allocation TIAA-CREF Lifecycle Rtmt. Income Institutional TLRIX 0.38% TIAA-CREF Lifecycle 2010 Institutional TCTIX 0.38% Vanguard Target Retirement Income Institutional Vanguard Target Retirement Income Institutional VITRX 0.09% VITRX 0.09% TIAA-CREF Lifecycle 2015 Institutional TCNIX 0.39% Vanguard Target Retirement 2015 Institutional VITVX 0.09% TIAA-CREF Lifecycle 2020 Institutional TCWIX 0.40% Vanguard Target Retirement 2020 Institutional VITWX 0.09% TIAA-CREF Lifecycle 2025 Institutional TCYIX 0.41% Vanguard Target Retirement 2025 Institutional VRIVX 0.09% TIAA-CREF Lifecycle 2030 Institutional TCRIX 0.42% Vanguard Target Retirement 2030 Institutional VITWX 0.09% TIAA-CREF Lifecycle 2035 Institutional TCIIX 0.43% Vanguard Target Retirement 2035 Institutional VITFX 0.09% TIAA-CREF Lifecycle 2040 Institutional TCOIX 0.44% Vanguard Target Retirement 2040 Institutional VIRSX 0.09% TIAA-CREF Lifecycle 2045 Institutional TTFIX 0.45% Vanguard Target Retirement 2045 Institutional VITLX 0.09% TIAA-CREF Lifecycle 2050 Institutional TFTIX 0.45% Vanguard Target Retirement 2050 Institutional VTRLX 0.09% TIAA-CREF Lifecycle 2055 Institutional TTRIX 0.45% Vanguard Target Retirement 2055 Institutional VIVLX 0.09% Fixed Income TIAA-CREF Money Market Institutional TCIXX 0.14% Vanguard Federal Money Market Fund VMFXX 0.11% U.S. Stock TIAA-CREF Large-Cap Value Institutional TRLIX 0.41% Diamond Hill Large Cap Y DHLYX 0.58% TIAA-CREF Mid-Cap Growth Institutional TRPWX 0.47% William Blair Small-Mid Cap Growth Fund WSMDX 1.10% TIAA-CREF Mid-Cap Value Institutional TIMVX 0.41% DFA U.S. Targeted Value Institutional DFFVX 0.37% TIAA-CREF Small-Cap Equity Institutional TISEX 0.42% William Blair Small-Mid Cap Growth Fund WSMDX 1.10% International Stock TIAA-CREF International Equity Institutional TIIEX 0.49% Harding Loevner International Equity Instl. HLMIX 0.83% * NSHE Retirement Plan Alternative (RPA) offers the Vanguard Target Retirement Trust I series. All other NSHE Retirement Plans offer the Vanguard Institutional Target Retirement Fund series. 4 Get started. Call 800-842-2252 or visit TIAA.org/NSHE.
Important Information Regarding TIAA Annuity Investment Options The following TIAA annuity investment options are NOT impacted by this consolidation. Any balance you may have in these investment options will remain in your existing account(s): TIAA Traditional Annuity (RA/SRA and GRA/GSRA) TIAA Real Estate Account CREF Stock Account R3 CREF Money Market Account R3 CREF Bond Market Account R3 CREF Social Choice Account R3 CREF Global Equities Account R3 CREF Equity Index Account R3 CREF Growth Account R3 CREF Inflation-Linked Bond Account R3 No new contributions, rollovers, or transfers may be made to these accounts. However, you can continue to transfer balances among your TIAA annuity investment options. ACCOUNT CONSOLIDATION CONSIDERATIONS There may be several benefits to consolidating your TIAA annuity assets into the current contracts of the NSHE Retirement Plans, including lower fees and simplified account management. However, there are a number of differences between the legacy contracts and the current contracts of the NSHE Retirement Plans. Most of the differences apply to the TIAA Traditional Annuity. If you re thinking about transferring some or all of your TIAA annuity account balances to the current contracts of the NSHE Retirement Plans, make sure you understand the differences before you initiate a transfer. For details, see the Contract Comparison chart located at TIAA.org/contractcomparison. If you have questions, call 800-842-2252, or schedule an appointment with a TIAA financial consultant who can help you understand your options. Get started. Call 800-842-2252 or visit TIAA.org/NSHE. 5
The NSHE Tiered Investment Menu Do you prefer to step back and let financial professionals handle your retirement strategy for you? Or do you have the skills and desire to select your own investments? Savvy investing begins with an in-depth understanding of your investment style and long-term goals. Think about the level of involvement you re comfortable with and your tolerance for risk, and select the investment option(s) that work best for you. For more details, visit TIAA.org/NSHE and select Investment Options. SIMPLY DECIDE WHICH TIER IS RIGHT FOR YOU TIER 1 For those who prefer an investment professional to do it for them TIER 2 For those who want to create a retirement portfolio that s aligned with their specific investment preferences and goals TIER 3 For the investment-savvy who want the flexibility of a brokerage account Not sure where to begin? Visit TIAA.org/NSHE. TIER 1 SELECT INVESTMENTS FOR ME TARGET-DATE FUNDS* Each fund invests in a broad mix of index funds to provide a diversified portfolio. Simply select the fund that most closely matches your anticipated retirement year. The fund s manager gradually shifts each fund s asset allocation to fewer stocks and more bonds so the fund becomes more conservative the closer you get to retirement. As with all mutual funds, the principal value of a target-date fund isn t guaranteed. Also, please note that the target date represents an approximate date when investors may plan to begin withdrawing from the fund. Vanguard Institutional Target Retirement Income Institutional (VITRX) Vanguard Institutional Target Retirement 2015 Institutional (VITVX) Vanguard Institutional Target Retirement 2020 Institutional (VITWX) Vanguard Institutional Target Retirement 2025 Institutional (VRIVX) Vanguard Institutional Target Retirement 2030 Institutional (VTTWX) Vanguard Institutional Target Retirement 2035 Institutional (VITFX) Vanguard Institutional Target Retirement 2040 Institutional (VIRSX) Vanguard Institutional Target Retirement 2045 Institutional (VITLX) Vanguard Institutional Target Retirement 2050 Institutional (VTRLX) Vanguard Institutional Target Retirement 2055 Institutional (VIVLX) Vanguard Institutional Target Retirement 2060 Institutional (VILVX) Vanguard Institutional Target Retirement 2065 Institutional (VSXFX) * NSHE Retirement Plan Alternative (RPA) offers the Vanguard Target Retirement Trust I series. All other NSHE Retirement Plans offer the Vanguard Institutional Target Retirement Fund series. If you do not actively select your investment(s), your assets will be directed automatically to the NSHE Retirement Plan Qualified Default Investment Alternative, which is the Target Retirement Fund based on the date closest to when you turn age 65. 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, there is exposure to the fees and expenses associated with the underlying mutual funds as well. continued 6 Get started. Call 800-842-2252 or visit TIAA.org/NSHE.
TIER 2 SELECT INVESTMENTS WITH ME CORE LINEUP (BUILD YOUR OWN) If you wish to create your own diversified investment mix, you may consider starting with the funds in this tier. The Plans core investments are monitored by NSHE s Retirement Plan Advisory Committee and can be combined to create a portfolio designed to suit your goals. You may work with a TIAA financial consultant for assistance in building your portfolio. Remember, it is recommended to review and rebalance your investment allocations annually. Passively Managed Index Funds Actively Managed Funds Money Market N/A Vanguard Federal Money Market Fund Investor (VMFXX) Stable Value N/A T. Rowe Price Stable Value Common Trust Fund A* Bonds Large-Cap Equity Small-/Mid-Cap Equity Vanguard Total Bond Market Index Institutional (VBTIX) Vanguard Total Stock Market Index Institutional (VITSX) Vanguard Institutional Index Institutional Plus (VIIIX) Vanguard Extended Market Index Institutional (VIEIX) PIMCO Total Return Fund Institutional (PTTRX) American Century High Income Y (NPHIX) DFA Inflation-Protected Securities I (DIPSX) T. Rowe Price Institutional Large Cap Growth Fund (TRLGX) Diamond Hill Large Cap Y (DHLYX) William Blair Small-Mid Cap Growth Fund (WSMDX) DFA U.S. Targeted Value I (DFFVX) Global Equity N/A Dodge & Cox Global Stock Fund (DODWX) International Equity Vanguard Total International Stock Index Fund Institutional (VTSNX) Vanguard Developed Markets Index Fund Institutional (VTMNX) Harding Loevner International Equity Institutional (HLMIX) MFS International Value Fund R5 (MINJX) Emerging Markets Equity Vanguard Emerging Markets Stock Index Fund Institutional (VEMIX) N/A Real Estate N/A Cohen & Steers Institutional Realty Shares (CSRIX) Socially Responsible N/A Vanguard FTSE Social Index (VFTSX) Guaranteed Fixed Annuity TIAA Traditional (Retirement Choice and Retirement Choice Plus) Any guarantees under annuities issued by Teachers Insurance and Annuity Association of America are subject to its claims-paying ability. TIAA Traditional is a guaranteed insurance contract and not an investment for federal securities law purposes. Diversification is a technique to help reduce risk. It is not guaranteed to protect against loss. There are inherent risks in investing in securities. * The T. Rowe Price Stable Value Common Trust Fund (the Trust ) is not a mutual fund. It is a common trust fund established by T. Rowe Price Trust Company under Maryland banking law, and its units are exempt from registration under the Securities Act of 1933. Investments in the Trust are not deposits or obligations of, or guaranteed by, the U.S. government or its agencies, or T. Rowe Price Trust Company. You could lose money by investing in the Trust. Although the Trust seeks to preserve the value of your investment at $1.00 per unit, it cannot guarantee to do so. TIER 3 SELECT INVESTMENTS ON MY OWN SELF-DIRECTED BROKERAGE WINDOW Self-directed brokerage may be appropriate for the experienced, savvy investor who prefers to be more involved with investing and wants additional choice and flexibility beyond the core offering of funds. A self-directed brokerage account is not appropriate for everyone. Additional fees may apply, and NSHE does not monitor the funds offered through the self-directed brokerage window. Some securities may not be suitable for all investors. By opening a brokerage account, you will be charged a commission on all transactions and other account-related fees in accordance with the TIAA Commission and Fee Schedule. Visit TIAA.org/sda_caa for a complete list of commissions and fees. NOTE: The mutual fund transaction fees have been waived for NSHE account holders. Other fees and expenses apply to a continued investment in the funds and are described in the fund s current prospectus. The brokerage account option is only available to participants who maintain both a legitimate U.S. residential address and a legitimate U.S. mailing address. TIAA does not offer investment advice for brokerage investment options. Get started. Call 800-842-2252 or visit TIAA.org/NSHE. 7
Personalized Investment Advice AT NO ADDITIONAL COST Get personalized investment advice from a TIAA financial consultant as part of the NSHE Retirement Plan at no additional cost to you. TIAA s advice is designed to help you answer these important questions: Am I on track to reach my retirement savings goals? Get help analyzing how your investments are performing and determine if you re saving enough to help meet your needs. Which combination of investments is right for me? Get assistance picking the right investments, diversifying properly, and allocating contributions to balance your need for growth potential with your tolerance for risk. How can I meet my income needs in retirement? Get help determining the amount you ll need to meet your retirement income goals. CONTACT TIAA PHONE Call TIAA at 800-842-2252, weekdays, 5 a.m. to 7 p.m., and Saturday, 6 a.m. to 3 p.m. (PT). ONLINE Go to TIAA.org/NSHE. Click Contact Us in the upper-right side of the page. ONE-ON-ONE ADVICE SESSIONS To meet with a TIAA financial consultant on your campus or at their Executive Suite in Las Vegas or Reno, call 800-732-8353, weekdays, 5 a.m. to 5 p.m. (PT), or visit TIAA.org/schedulenow to schedule an appointment. 8 Get started. Call 800-842-2252 or visit TIAA.org/NSHE.
Understanding Fees NSHE believes in transparency regarding your investment fees and administrative expenses. To help you make informed decisions, the following information provides you with an explanation of the various types of asset-based and transaction-based fees paid by participants. INVESTMENT MANAGEMENT FEES Each investment option in the NSHE Retirement Plans has an associated total expense ratio, which is the percentage of assets an investment provider charges each year in exchange for its services. These total expense ratios are different for each investment option in which you may choose to invest. Your total return is net of these investment management fees. In other words, your return is calculated after these fees have been deducted from the investment. This allows you to compare the performance of investments that have different fees. You can find the expense ratios for each of the Plans investment options at TIAA.org/NSHE or in the prospectuses/fact sheets for funds available under the Plans. PLAN SERVICING FEES An annual plan servicing fee of 0.059% ($0.59 per $1,000) of assets will be divided into four quarterly payments and deducted from your NSHE retirement contract(s) quarterly. These administrative fees are in addition to investment management fees described above. The plan servicing fee will be assessed on your average daily balance of assets in Tiers I, II, and III, and will be prorated across your investment options in Tiers I and II. On your statements, these fees will be listed as a TIAA Plan Servicing Fee and will appear as a debit for each investment option that you hold as of the last day of each quarter. BROKERAGE ACCOUNT FEES If you open a brokerage account, you will be charged a fee on certain transactions and other account-related activities in accordance with the TIAA Commission and Fee Schedule. There is no annual account maintenance fee. Please review the TIAA Brokerage Account Customer Agreement at TIAA.org/sda_caa. The Agreement contains important information about the plans brokerage account, as well as the TIAA Commission and Fee Schedule. 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 allocation to suit your investment needs. Get started. Call 800-842-2252 or visit TIAA.org/NSHE. 9
Retirement Plan Checklist for your consideration Consider completing this... Which is important because... Update your beneficiary information. Review your investment allocation for the transferred balances. Schedule a one-on-one advice session with a TIAA financial consultant. Use the investment advice and planning tools TIAA provides. Manage your account quickly and easily online at TIAA.org/NSHE. Please take this opportunity to review and update your beneficiary designation. Out-of-date beneficiary information could cause your assets to pass on in ways you don t intend. Your TIAA mutual fund assets will be automatically transferred into a Vanguard Target Retirement investment option at TIAA based upon the date closest to when you turn age 65. After the transfer is complete, you can review your account and make changes if you wish. You can get professional advice on determining an investment allocation strategy that is in line with your long-term goals. This service is available to you at no additional cost. You can boost your financial know-how with easy-to-use tools and calculators, as well as online financial education and information. You can manage virtually every aspect of your retirement plan account including the ones on this list by logging in at TIAA.org/NSHE. Power Up The new map to NSHE retirement 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 877-518-9161 or go to TIAA.org/NSHE 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. 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. 2018 Teachers Insurance and Annuity Association of America-College Retirement Equities Fund, 730 Third Avenue, New York, NY 10017 373725 828000-1005600 (01/18)