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2017 Changes to UR Retirement Plan

The University is making several changes to the UR Retirement Plan that will begin March 7, 2017 and be completed by April 4, 2017. Please plan to attend an information session on campus presented by a TIAA financial consultant to learn more about the plan updates.

On-Campus Information Sessions

Date

Time

Location

Tuesday, February 14

10 a.m.

Weinstein Hall, Brown Alley Room

Tuesday, February 21

*Facilities employees only

10 a.m.

Robins School of Business, Ukrop Auditorium

Tuesday, February 21

2 p.m.

Robins School of Business, Ukrop Auditorium

Thursday, March 2

10 a.m.

Weinstein Hall, Brown Alley Room

Thursday, March 2

2 p.m.

Weinstein Hall, Brown Alley Room

Wednesday, March 8

*Dining Services employees only

2:15 p.m.

Heilman Dining Center, Richmond Room

Tuesday, March 14

2 p.m.

Weinstein Hall, Brown Alley Room

Thursday, March 16

10 a.m.

Weinstein Hall, Brown Alley Room

One-on-One Meetings with TIAA

TIAA representatives will be meeting with employees on campus to review the plan updates and discuss personal situations. Call 1-800-732-8353 to schedule your 1-hour session.

Why changes are being made

In order to ensure the University provides appropriate oversight of the Plan for all participants, the University’s Board of Trustees authorized the creation of campus committees to oversee the Plan in 2011. The current Retirement Plan Administration & Investment Committee is composed of six employees, including a faculty representative, and meets at least four times each year to review the performance of the investments in the plan and oversee plan administration. The Committee works closely with SageView Advisory Group, the University’s third party consultant, who provides investment fiduciary guidance, plan design recommendations, and plan administration suggestions to the committee.

After a recent review of the University’s Retirement Plan, SageView advised, and the Committee approved, this plan to improve investment options in the plan by including funds from new providers with lower fees that provide better value for faculty and staff.

A comprehensive transition guide with more details about the plan changes will be sent in February 2017. 

Key aspects are staying the same

Employee contribution limits, employer contributions, eligibility and immediate vesting remain the same.

What's changing:

1. New investment menu with lower-cost investment options.

  • The new investments, carefully selected for UR employees, maintain participants’ ability to create a diversified retirement portfolio, but at a lower cost.

2. New Retirement Choice contracts will be issued.

  • A new “Retirement Choice” contract will be created for each participant which will hold both new contributions and any existing balances invested in mutual funds. 
  • The purpose of the new contract is to provide more flexibility in managing the investment menu offered to UR participants.  For example, under the new contract, poor performing investment options can be more easily replaced with better performing ones, an aspect that the prior structure did not always allow for. 
  • All future contributions will go into the new Retirement Choice contracts.
  • Participants’ mutual fund assets in the old structure will be mapped to investment options available under the new Retirement Choice contracts.

3. New Roth Contribution option.

  • The Roth contribution option is another way for you to save for your financial future. 
  • Here’s how it works:  Currently, your contributions to the Plan are made with pre-tax dollars, and this money has the potential to accumulate on a tax-deferred basis until you take a withdrawal or distribution. At the time of withdrawal or distribution, this money will be taxed at your then-current tax rate. With the Roth option, you can contribute after-tax dollars.  The savings with the Roth option and any attributed earnings will be tax-free at withdrawal when you reach age 59½ provided the contributions have been in the plan for five consecutive years. 
  • The combination of any pre-tax contributions and Roth contributions are together subject to the annual deferral limitations set by the IRS.  For 2017, that’s $18,000 for most and $22,000 if you are over the age of 50.

Have questions?

Call TIAA at 800-842-2252. Consultants are available weekdays, 8 a.m. to 10 p.m. (ET) and Saturday, 9 a.m. to 6 p.m. (ET). 

Questions About Benefits?

Contact Human Resources at (804) 289-URHR (8747) or email URHR@richmond.edu.