Understanding Your Retirement Plans Changes Essential Information for Participants of the tufts university retirement plans
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Introducing the changes to your Tufts University retirement plans Effective March 1, 2011, important changes will be implemented with regard to TIAA-CREF investment fund options in the Tufts University 401(a) Basic and 403(b) Voluntary Retirement Plans. These modifications were made to streamline the investment selection process to make it easier for you to build the type of retirement you want. Even though it can be time-consuming, planning for retirement is important. The Tufts University Human Resources Benefits Office, and TIAA-CREF, are committed to helping you understand the decisions you need to make for your future. TIAA-CREF Options under the Tufts University Retirement Plans TIAA-CREF will offer the TIAA Traditional Annuity account and the CREF Stock Account under the new Tufts University Core Fund lineup. The other choices through TIAA-CREF will not be available for future contributions after April 28, 2011. Below is a listing of the current TIAA-CREF options: Core Fund Menu These options will continue to be available to accept current and future contributions. n CREF Stock Account n TIAA Traditional Annuity Non-Core Fund Menu These funds are not part of the Core Fund lineup. You may leave your balance in these accounts; however, no future contributions can be made to these funds after April 28, 2011. n CREF Bond Market Account n CREF Equity Index Account n CREF Global Equities Account n CREF Growth Account n CREF Inflation-Linked Bond Account n CREF Money Market Account n CREF Social Choice Account n TIAA-CREF Lifecycle 2010 Fund n TIAA-CREF Lifecycle 2015 Fund n TIAA-CREF Lifecycle 2020 Fund n TIAA-CREF Lifecycle 2025 Fund n TIAA-CREF Lifecycle 2030 Fund n TIAA-CREF Lifecycle 2035 Fund n TIAA-CREF Lifecycle 2040 Fund n TIAA-CREF Lifecycle 2045 Fund n TIAA-CREF Lifecycle 2050 Fund n TIAA-CREF Lifecycle Retirement Income Fund n TIAA Real Estate Account 1
TIAA Traditional annuity TIAA Traditional is an excellent option for participants seeking to build a secure base for their retirement income. Each contribution allocated to the TIAA Traditional Annuity buys a specific amount of lifetime income based on the rate schedule in effect at the time the payment is made. In addition, TIAA Traditional provides a guarantee of principal, a guaranteed minimum interest rate* and the potential for additional amounts when declared by TIAA s Board of Trustees. When declared, these additional amounts remain in effect for the declaration year that begins each March 1 for accumulating annuities and January 1 for lifetime payout annuities. The TIAA General Account, which backs the returns and guarantees of the TIAA Traditional Annuity,** invests primarily in corporate and government bonds, structured finance instruments such as mortgage-backed securities, and real estate. TIAA Traditional is offered in the Group Retirement Annuity (GRA) in the Tufts University 401(a) Basic Retirement Plan, and the Group Supplemental Retirement Annuity (GSRA) in the Tufts University 403(b) Voluntary Retirement Plan. The transfer payout annuity (TPA) allows you to transfer or withdraw your TIAA Traditional account balance from a Retirement Annuity or Group Retirement Annuity in 10 annual installments. There are two exceptions. First, if your account balance is less than $2,000, you can transfer the total amount at any time. Second, if you have an RA or GRA you can withdraw up to the full amount within 120 days after termination from service for a charge of 2.5%. This only applies to the RA and GRA and not the SRA or GRSA, which are fully liquid contracts. This restriction does not apply to the CREF Annuity Accounts. For objective, strategy and historical performance information, please go to the website www.tiaa-cref.org/tufts. This is under the Fund information descriptions. CREF Stock Account Another distinctive solution, the CREF Stock Account, is an all-equity portfolio with global exposure, value and a growth style that holds small-, middle- and large-capitalization companies within a single annuity account. The underlying investments within the CREF Variable Annuity lineup are managed by TIAA-CREF Asset Management. The team is committed to seeking consistent performance over time and provides a range of style-consistent portfolios that seek to achieve attractive risk-adjusted returns. * Guarantees based on the claims-paying ability of TIAA. ** Participants do not participate in general account performance. 2
WHAT HAPPENS NEXT Active Participants (Current Employees) Your future contributions After April 28, 2011 at 4:00 p.m. (ET), no additional contributions may be directed to the non-core TIAA-CREF investment fund choices. You may allocate your future contributions to the CREF Stock Account or the TIAA Traditional Annuity account. IMPORTANT: You must update your future investment allocation to the Core Fund choices (either the TIAA Traditional or the CREF Stock Account), or a combination of the two accounts by April 28. In the event you do not update your future investment allocation to Core Fund choices, your future contributions will be directed to the Tufts University Retirement Plan default (a Fidelity Lifecycle Fund). HOW TO UPDATE YOUR Future INVESTMENT ALLOCATIONS There are a couple of convenient ways to update your allocation to the TIAA-CREF accounts offered in the Core Fund lineup. You can update your TIAA-CREF choices: n Online at www.tiaa-cref.org. n By calling the TIAA-CREF Automated Telephone Service at 800 842-2252. n By speaking with a TIAA-CREF Consultant who can answer your questions and help you update future contributions and allocations. Simply call 800 842-2252 from 8:00 a.m. to 10:00 p.m. (ET) Monday through Friday or Saturday from 9:00 a.m. to 6:00 p.m. (ET), and be ready to provide your SSN and password for the best service. Current Balances Until July 28, 2011, you can make changes to your current balances into any of the current TIAA-CREF funds 24/7 through our telephone service representatives toll-free at 800 842-2252 or via the web at www.tiaa-cref.org. After July 28, 2011, any balances you have in the non-core TIAA-CREF investment options will remain in those accounts. However, no future contributions can be made to non-core TIAA-CREF funds.* In addition, you will only be able to exchange current balances into the TIAA Traditional Annuity, the CREF Stock Account, or the CREF Money Market Account. Inactive Participants (Terminated or Retired Employees) Effective July 28, 2011, any balances you have in the non-core TIAA-CREF investment options will remain in those accounts. In addition, you will only be able to exchange current balances into the TIAA Traditional Annuity account, the CREF Stock Account or the CREF Money Market Account. Former employees may roll their balances into an IRA or other qualified retirement plan, if that plan allows rollovers. *You may make contributions to the CREF Money Market Account indirectly by transferring amounts from other TIAA-CREF funds. 3
Where to get help Objective Guidance at no additional Cost At TIAA-CREF, we re pleased to provide Tufts University employees with straightforward, objective advice on allocating their retirement assets. Our team is experienced in developing retirement investment strategies, helping you define your investment objectives, assessing risk and return, valuing and selecting investments, and in allocating existing assets and future contributions. Best of all, you get this in-depth investment guidance at no additional cost. phone You can schedule a personal financial advice session with a TIAA-CREF consultant by calling 800 732-8353, Monday through Friday, from 8:00 a.m. to 8:00 p.m. (ET). You may make changes to your account 24/7 by accessing our Telephone Services line at 800 842-2252. online You can review your TIAA-CREF options under the retirement plan: www.tiaa-cref.org Tufts University Employee Benefits: http://hr.tufts.edu/retirementplanning 4
Why TIAA-CREF is a smart choice Long history of serving the higher education community For more than 90 years, TIAA-CREF has helped millions of people in the academic, medical, cultural and research fields save and invest for retirement and other financial goals. Today, TIAA-CREF has more than $453 billion in combined assets under management (as of 12/31/10) and serves 3.7 million individuals and more than 27,000 retirement plans. Value With its nonprofit heritage, TIAA-CREF is committed to keeping costs low. TIAA-CREF s objective is to offer you an exceptional overall value for the best possible cost. Although reduced expenses do not mean higher returns, investing in lower-cost investments puts more of your money to work toward reaching your retirement goals. Financial strength and stability of TIAA For its stability, claims-paying ability and overall financial strength, TIAA, the insurance company affiliate that backs TIAA Traditional and our other guaranteed products, currently holds top ratings from all four leading insurance company ratings agencies: n A.M. Best Co.: A++ (as of 2/11) n Fitch: AAA (as of 4/10) n Moody s Investors Service: Aaa (as of 7/10) n Standard & Poor s: AAA (as of 8/10) Please note that these ratings only apply to TIAA as an insurance company, and not to variable annuities, mutual funds, or any other product or service not fully backed by TIAA s claims-paying ability. Ratings are subject to change. There is no guarantee that current ratings will be maintained. Objective guidance, planning and advice TIAA-CREF s consultants are committed to helping you make the best decisions for your financial future. A TIAA-CREF consultant can give you personal, objective investment recommendations for your retirement portfolio, based on your goals, time horizon and tolerance for risk. TIAA-CREF is committed to serving Tufts University Employees now, and in the years to come. 5
Investment products, insurance, and annuity products are not FDIC insured, are not bank guaranteed, may lose value, are not deposits, are not insured by any federal government agency, and are not a condition to any banking service or activity. TIAA-CREF products may be subject to market and other risk factors. See the applicable product literature, or visit tiaa-cref.org for details. You should consider the investment objectives, risks, charges and expenses carefully before investing. Please call 877 518-9161, or go to tiaa-cref.org for a current prospectus that contains this and other information. Please read the prospectus carefully before investing. Annuity contracts and certificates are issued by Teachers Insurance and Annuity Association (TIAA) and College Retirement Equities Fund (CREF), New York, NY. TIAA-CREF Individual & Institutional Services, LLC and Teachers Personal Investors Services, Inc., members FINRA, distribute securities products. 2011 Teachers Insurance and Annuity Association-College Retirement Equities Fund (TIAA-CREF), New York, NY 10017 Printed on 10% recycled post-consumer fiber. C50219