Your Davidson College Retirement Plan ENHANCEMENTS GUIDE

Transcription

1 Your Davidson College Retirement Plan ENHANCEMENTS GUIDE 14853_01_BRO_Davidson.indd 1 5/4/14 8:31 AM

2 NOW IS A GREAT TIME TO TAKE ADVANTAGE OF YOUR DAVIDSON RETIREMENT PLAN BENEFITS. Davidson College (the College ) is pleased to announce significant enhancements to our Retirement Plans (the Plans ), all of which are designed to better serve employees in achieving their retirement goals. While Fidelity Investments and TIAA-CREF will remain our two plan vendors, effective June 30, 2014, Fidelity will support our enrollment process and provide ongoing service for both Fidelity and TIAA-CREF retirement plan participants. A new Davidson College Retirement Planning Web site will enable users to enroll and make changes with either vendor, and will provide valuable retirement planning resources and tools. You will no longer need to complete a paper form to make a change to your contribution amount or to change your investment services provider. These transactions can both be completed on the new Web site, which will be announced June 30, In addition, there will be meaningful changes to the fund lineup offered by both providers. The end result is an easy-to-understand, three-tier plan with a simplified menu of low-cost, high-quality investment options. This guide provides a summary of the investment option changes and outlines how your account may be affected. TABLE OF CONTENTS Enhancements to Your Plan 1 Fidelity Investment Option Summary and Mapping 2 TIAA-CREF Investment Option Summary and Mapping 5 Default Investment Options for Both Providers 8 New Web Site and Retirement Service Center 9 Next Steps 14853_01_BRO_Davidson.indd /4/14 8:31 AM

3 ENHANCEMENTS TO YOUR PLAN Both Fidelity Investments and TIAA-CREF will continue to be investment services providers to which you can direct your payroll contributions. Effective June 30, 2014, Fidelity Investments will become the primary administrative services provider for enrolling in the Plans, changing your payroll contributions, and choosing your investment services provider for the Retirement Plans. Faculty and Staff who currently contribute to TIAA-CREF may continue to do so. You will not be required to re-enroll in your Plan. Your contributions will continue to be invested with your chosen investment services provider, although the investment options will change, as described in this guide. Beginning June 30, 2014, any changes to your payroll contributions and/or investment services provider elections will be made through the new Davidson College Retirement Planning Web site or by calling the Fidelity Retirement Service Center. The Plans will continue to offer the following products and services: Choice of investment services providers: Fidelity Investments and TIAA-CREF Employer contributions directed to your chosen investment services provider Employee contributions directed to your chosen investment services provider On-site representatives from both Fidelity Investments and TIAA-CREF Beneficiary designations updated through your chosen investment services provider Loans and withdrawal options Quarterly statements and required notifications The Plans will offer the following new services: A new Web site that provides Plan information, retirement planning tools, and access to log in to your account to make changes to your payroll contribution and investment services provider A revised investment option lineup A dedicated retirement service center to enroll or make changes to your payroll contribution and investment services provider A direct online link from the new Web site to access your TIAA CREF account June 24, 2014, will be the last day to change your investment services provider or change your current payroll contribution. After this date, you will need to wait until June 30, 2014, to make changes through the new site. You can continue to make changes to your investments or process a loan or withdrawal at any time through your service provider. The new Web site will go live on June 30, In the meantime, please continue to use your investment services provider s current Web site when accessing your account. For Fidelity Investments, online at or call For TIAA-CREF, online at or call

4 YOUR PLANS INVESTMENT OPTIONS Investment Option Overview Fidelity Accounts Before investing in any mutual fund, consider the investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully. The new lineup of investment options in the Plans gives you a choice of mutual funds that cover the major asset classes: stocks, bonds, and short-term investments. These investment options give you the flexibility to build your own strategy to meet your needs. INVESTMENT OPTIONS AS OF JUNE 28, 2014 TIER I Vanguard Target Retirement Income Fund Vanguard Target Retirement 2010 Fund Vanguard Target Retirement 2015 Fund Vanguard Target Retirement 2020 Fund Vanguard Target Retirement 2025 Fund Vanguard Target Retirement 2030 Fund Vanguard Target Retirement 2035 Fund Vanguard Target Retirement 2040 Fund Vanguard Target Retirement 2045 Fund Vanguard Target Retirement 2050 Fund Vanguard Target Retirement 2055 Fund Vanguard Target Retirement 2060 Fund TIER II Fidelity Money Market Trust Retirement Money Market Portfolio PIMCO Total Return Fund Administrative Class Vanguard Total Bond Market Index Fund Fidelity Balanced Fund Vanguard 500 Index Fund Admiral Class Fidelity Contrafund American Funds EuroPacific Growth Fund Class R-5 Cohen & Steers Realty Shares Fund Vanguard Total International Stock Index Admiral TIER III Fidelity BrokerageLink VTINX VTENX VTXVX VTWNX VTTVX VTHRX VTTHX VFORX VTIVX VFIFX VFFVX VTTSX FRTXX PTRAX VBTLX FBALX VFIAX FCNTX RERFX CSRSX VTIAX N/A 2

5 Investment Options that Are Changing in Fidelity Accounts Any current balances or future contribution elections that you have in the current investment options listed on the left side of the table below as of June 27, 2014, will be transferred to the new option on the right. If you prefer to invest your future contributions, loan repayments, or current balances differently prior to the transfer, please contact Fidelity at or call You can also make changes in your account once the transfer is complete. CURRENT INVESTMENT OPTION AS OF 4 P.M. ET, JUNE 27, 2014 NEW INVESTMENT OPTION AS OF JUNE 28, 2014 Fidelity Total Bond Fund FTBFX PIMCO Total Return Fund Administrative Class PTRAX Fidelity Capital & Income Fund* FAGIX PIMCO Total Return Fund Administrative Class PTRAX AllianzGI NFJ Dividend Value Fund Administrative Class ANDAX Fidelity Contrafund FCNTX Spartan 500 Index Fund Fidelity Advantage Class FUSVX Vanguard 500 Index Fund Admiral Class VFIAX Davis New York Venture Fund Class A NYVTX Vanguard 500 Index Fund Admiral Class VFIAX Fidelity Capital Appreciation Fund FDCAX Fidelity Contrafund FCNTX Artisan Mid Cap Value Fund Investor Class Spartan Extended Market Index Fund Fidelity Advantage Class* Munder Mid-Cap Core Growth Fund Class Y ARTQX FSEVX MGOYX Third Avenue Value Fund Institutional Class* TAVFX American Funds EuroPacific Growth Fund Class R-5 RERFX Fidelity International Discovery Fund* FIGRX American Funds EuroPacific Growth Fund Class R-5 RERFX Spartan International Index Fund Fidelity Advantage Class* Loomis Sayles Small Capital Value Fund Retail Class Northern Small Cap Value Fund Royce Value Plus Fund Service Class Lazard Emerging Markets Equity Portfolio Institutional Shares* Fidelity Freedom Income Fund Fidelity Freedom 2000 Fund FSIVX LSCRX NOSGX RYVPX Vanguard Total International Stock Index VTIAX LZEMX American Funds EuroPacific Growth Fund Class R-5 RERFX FFFAX FFFBX Vanguard Target Retirement Income Fund Vanguard Target Retirement Income Fund VTINX VTINX 3

6 CURRENT INVESTMENT OPTION AS OF 4 P.M. ET, JUNE 27, 2014 NEW INVESTMENT OPTION AS OF JUNE 28, 2014 Fidelity Freedom 2005 Fund FFFVX Vanguard Target Retirement Income Fund VTINX Fidelity Freedom 2010 Fund FFFCX Vanguard Target Retirement 2010 Fund VTENX Fidelity Freedom 2015 Fund FFVFX Vanguard Target Retirement 2015 Fund VTXVX Fidelity Freedom 2020 Fund FFFDX Vanguard Target Retirement 2020 Fund VTWNX Fidelity Freedom 2025 Fund FFTWX Vanguard Target Retirement 2025 Fund VTTVX Fidelity Freedom 2030 Fund FFFEX Vanguard Target Retirement 2030 Fund VTHRX Fidelity Freedom 2035 Fund FFTHX Vanguard Target Retirement 2035 Fund VTTHX Fidelity Freedom 2040 Fund FFFFX Vanguard Target Retirement 2040 Fund VFORX Fidelity Freedom 2045 Fund FFFGX Vanguard Target Retirement 2045 Fund VTIVX Fidelity Freedom 2050 Fund FFFHX Vanguard Target Retirement 2050 Fund VFIFX * A short-term trading fee will not be charged as part of this transition. If you request a change before this transition without satisfying the required holding period, you may incur a short-term trading fee. Investment Options that Are Not Changing in Fidelity Accounts Future contributions and existing balances that you have in any of the following investment options will continue to be invested in the same funds. CURRENT INVESTMENT OPTION Fidelity Money Market Trust Retirement Money Market Portfolio Fidelity Balanced Fund Cohen & Steers Realty Shares Fund FRTXX FBALX CSRSX 4

7 Investment Option Overview TIAA-CREF Accounts Investment, insurance and annuity products are not FDIC insured, are not bank guaranteed, are not bank deposits, are not insured by any federal government agency, are not a condition to any banking service or activity, and may lose value. Investment products may be subject to market and other risk factors. See the applicable product literature, or visit for details. You should consider the investment objectives, risks, charges and expenses carefully before investing. For more information on your current investment options with TIAA-CREF, please call or go to for current product and fund prospectuses that contain this and other information. Please read the prospectuses carefully before investing. The information on your new investment options that will be available in the Plans effective June 27, 2014, will be available online at beginning June 1, The new lineup of investment choices in the Plans gives you a variety of options INVESTMENT OPTIONS AS OF JUNE 27, 2014 that cover the major asset classes: stocks, TIER I bonds, and short-term investments. These Vanguard Target Retirement Income Fund investment options give you the flexibility Vanguard Target Retirement 2010 Fund to build your own strategy to meet Vanguard Target Retirement 2015 Fund your needs. Vanguard Target Retirement 2020 Fund Vanguard Target Retirement 2025 Fund Vanguard Target Retirement 2030 Fund Vanguard Target Retirement 2035 Fund Vanguard Target Retirement 2040 Fund Vanguard Target Retirement 2045 Fund Vanguard Target Retirement 2050 Fund Vanguard Target Retirement 2055 Fund Vanguard Target Retirement 2060 Fund TIER II TIAA Traditional Account CREF Money Market Account PIMCO Total Return Fund Administrative Shares Vanguard Total Bond Market Index Fund American Funds EuroPacific Growth Fund Class R-5 Vanguard 500 Index Fund Admiral Class Vanguard Total International Stock Index CREF Social Choice Account CREF Stock Account TIAA Real Estate Account VTINX VTENX VTXVX VTWNX VTTVX VTHRX VTTHX VFORX VTIVX VFIFX VFFVX VTTSX Guaranteed Annuity PTRAX VBTLX RERFX VFIAX VTIAX 5

8 Investment Options that Are Changing in TIAA-CREF Accounts The charts below and on the next page outline the changes that will take place within TIAA-CREF accounts on June 27, In some cases, both current balances and future contribution elections within an option will transfer to a different investment option. In others, only future contribution elections will be transferred. If you currently invest in an investment option where your balance will remain, but your future contributions will not, that balance will become frozen. No new monies may be transferred into that investment option. Exchanges out of the option will still be available at any time. Eligible loan and withdrawal amounts will not be affected by having a balance in a frozen fund. Please review your current investment options and refer to the charts below and on the next page to understand how your account will be affected by these changes. If you prefer to invest your future contributions, loan repayments, or current balances differently prior to the transfer, please contact TIAA-CREF at or call before June 27, 2014, to request a change. You can also make changes in your account once the transfer is complete. TIAA-CREF Account Investment Options from Which Both Existing Balances and Future Contributions Will Transfer to a Different Fund Existing balances and future contribution elections that you have in any of the current investment options listed on the left side of the table below as of June 27, 2014, will be transferred to the new option on the right. CURRENT INVESTMENT OPTION AS OF JUNE 27, 2014 NEW INVESTMENT OPTION AS OF JUNE 30, 2014 Western Asset Core Plus Bond Fund Class I WACPX PIMCO Total Return Fund Administrative Shares PTRAX TIAA-CREF Large-Cap Value Fund Retirement Class TRLCX CREF Stock Account Washington Mutual Investors Fund SM RWMFX CREF Stock Account TIAA-CREF Mid-Cap Value Fund Retirement Class TIAA-CREF Mid-Cap Growth Fund Retirement Class TIAA-CREF International Equity Fund Retirement Class TIAA-CREF Small-Cap Equity Fund Retirement Class TIAA-CREF Lifecycle Retirement Income Fund Retirement Class TRVRX TRGMX Variable Annuity Variable Annuity TRERX American Funds EuroPacific Growth Fund Class R-5 RERFX TRSEX TLIRX Vanguard Target Retirement Income Fund VTINX 6

9 CURRENT INVESTMENT OPTION AS OF JUNE 27, 2014 NEW INVESTMENT OPTION AS OF JUNE 30, 2014 TIAA-CREF Lifecycle 2010 Fund Retirement Class TCLEX Vanguard Target Retirement 2010 Fund VTENX TIAA-CREF Lifecycle 2015 Fund Retirement Class TCLIX Vanguard Target Retirement 2015 Fund VTXVX TIAA-CREF Lifecycle 2020 Fund Retirement Class TCLTX Vanguard Target Retirement 2020 Fund VTWNX TIAA-CREF Lifecycle 2025 Fund Retirement Class TCLFX Vanguard Target Retirement 2025 Fund VTTVX TIAA-CREF Lifecycle 2030 Fund Retirement Class TCLNX Vanguard Target Retirement 2030 Fund VTHRX TIAA-CREF Lifecycle 2035 Fund Retirement Class TCLRX Vanguard Target Retirement 2035 Fund VTTHX TIAA-CREF Lifecycle 2040 Fund Retirement Class TCLOX Vanguard Target Retirement 2040 Fund VFORX TIAA-CREF Lifecycle 2045 Fund Retirement Class TTFRX Vanguard Target Retirement 2045 Fund VTIVX TIAA-CREF Lifecycle 2050 Fund Retirement Class TLFRX Vanguard Target Retirement 2050 Fund VFIFX TIAA-CREF Lifecycle 2055 Fund Retirement Class TTRLX Vanguard Target Retirement 2055 Fund VFFVX TIAA-CREF Account Investment Options from Which Only Future Contributions Will Transfer to a Different Option. Existing Balances Will Remain in the Same Option. Future contribution elections for any of the current investment options listed on the left side of the table below as of June 27, 2014, will be transferred to the investment option on the right side of the chart. Current balances in the investment options listed in the left side of the chart below will remain in the same investment option and will not be transferred. The options listed on the left side of the chart below will become frozen options. After June 30, 2014, no new contributions or changes into the frozen options will be permitted. You will still be able request an exchange out of the option to another available investment option in the Plans at any time. CURRENT INVESTMENT OPTION FUTURE CONTRIBUTIONS WILL BE DIRECTED AS OF JUNE 27, 2014 TO THE OPTION BELOW AFTER JUNE 30, 2014 CREF Bond Market Account PIMCO Total Return Fund Administrative Shares PTRAX CREF Inflation-Linked Bond Account PIMCO Total Return Fund Administrative Shares PTRAX CREF Equity Index Account Vanguard 500 Index Fund Admiral Class VFIAX CREF Growth Account CREF Stock Account CREF Global Equities Account American Funds EuroPacific Growth Fund Class R-5 RERFX 7

10 Investment Options that Are Not Changing in TIAA-CREF Accounts Future contributions and balances that you have in any of the following investment options will continue to be invested in the same option. CURRENT INVESTMENT OPTION TIAA Traditional Account CREF Money Market Account CREF Social Choice Account CREF Stock Account TIAA Real Estate Account American Funds EuroPacific Growth Fund R5 Guaranteed Annuity RERFX Default Investment Options for Fidelity and TIAA-CREF Accounts The College has determined that any future contributions to your Plan account that you have not directed to a specific investment option will be invested in a Vanguard Target Retirement Fund. This applies only if you have not provided an investment mix for your contributions. Your future contributions will be invested in the lifecycle fund that has a target retirement date closest to the year you might retire, assuming a retirement age of 65, at the direction of the College. Please see the chart below to determine in which fund your contributions will be invested if no elections are on file. RETIREMENT DATE DATE OF BIRTH VANGUARD TARGET RETIREMENT FUND RANGE Before 12/31/1942 Vanguard Target Retirement Income Fund Retired before /1/ /31/1947 Vanguard Target Retirement 2010 Fund /1/ /31/1952 Vanguard Target Retirement 2015 Fund /1/ /31/1957 Vanguard Target Retirement 2020 Fund /1/ /31/1962 Vanguard Target Retirement 2025 Fund /1/ /31/1967 Vanguard Target Retirement 2030 Fund /1/ /31/1972 Vanguard Target Retirement 2035 Fund /1/ /31/1977 Vanguard Target Retirement 2040 Fund /1/ /31/1982 Vanguard Target Retirement 2045 Fund /1/ /31/1987 Vanguard Target Retirement 2050 Fund /1/ /31/1992 Vanguard Target Retirement 2055 Fund /1/1993 or later Vanguard Target Retirement 2060 Fund 2058 and later Date ranges were selected by your Plan Sponsor. 8

11 NEW WEB SITE AND RETIREMENT SERVICE CENTER Beginning June 30, 2014, it will be easier for you to enroll in the Plans, change your payroll contribution, and change your investment services provider. Everything will be available online, virtually 24 hours a day, 7 days a week, through the new Davidson College Retirement Planning Web site. You will no longer need to complete a paper form. You will no longer be contacting Human Resources to enroll, or for payroll contribution changes. The new Web site is currently in development and will be available to you beginning June 30, You will receive an announcement including the new Web site address and instructions on how to access your account. In the meantime, please feel free to continue to use your existing Web site with your current investment services provider until the new one is announced. Fidelity Investments: TIAA-CREF: To reach the Retirement Service Center by phone You may also access your account or speak with a Customer Service Representative by calling Fidelity toll free at , Monday through Friday (excluding New York Stock Exchange holidays) from 8:30 a.m. to midnight Eastern time. For changes to TIAA-CREF accounts, please call , Monday through Friday, 8 a.m. to 10 p.m., and Saturday, 9 a.m. to 6 p.m. ET _01_BRO_Davidson.indd 9 5/4/14 8:31 AM

12 NEXT STEPS No action is required on your part; however, you may want to revisit your investing strategy to make sure it is appropriate for your retirement savings goals. Steps you can take now Watch the Plan Enhancements workshop presentation online If you were not able to attend an on-site meeting, you can watch the presentation online at your convenience at Steps you can take beginning June 30, 2014 Set up your username and password. Review your investment services provider selection and payroll contribution amount. Register your address and set your communication delivery preferences. Review or update your beneficiaries. Take advantage of online account access, tools, and calculators. Schedule a confidential consultation. Details on how to set up your username and password will be forthcoming. If you are a current Fidelity customer and already have a username and a password, you can use them to access your account on the new Web site. Determine whether you want to make any changes to your investment services provider or change your voluntary payroll contribution amount. If you don t want to make any changes, no action is required. You can do both under the Your Profile tab once logged on to the new Web site to ensure you ll receive important communications the way you prefer. If you haven t already done so, be sure to provide your beneficiary information to your selected investment services provider. Now is a good time to review or update your beneficiary designation. Get details on all your investments, including account statements, current prices, and historical performance. The Davidson College Retirement Planning Web site also provides many tools and calculators to help you create a successful savings and retirement strategy. Now is a great time to schedule an appointment for a confidential consultation to discuss your retirement planning goals. For a confidential consultation with Fidelity, call For a confidential consultation with TIAA-CREF, call Keep in mind that investing involves risk. The value of your investment will fluctuate over time and you may gain or lose money. TIAA-CREF and Fidelity Investments are independent entities and are not legally affiliated. This document provides only a summary of the main features of the Davidson College 403(b) Retirement Plan and Tax Deferred Annuity Plan and the Plan document will govern in the event of any discrepancies. The Plans are intended to be participant-directed plans as described in Section 404(c) of ERISA, which means that fiduciaries of the Plans are ordinarily relieved of liability for any losses that are the direct and necessary result of investment instructions given by a participant or beneficiary. Fidelity Brokerage Services LLC, Member NYSE, SIPC 900 Salem Street, Smithfield, RI FMR LLC. All rights reserved