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Updates to the Colorado Mesa University retirement plans

Updates to the Colorado Mesa University retirement plans. Overview of topics we’ll be covering today. What stays the same. What is different. New core investment menu. Key dates. Next steps you can take. Individual Transition Experience.

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Updates to the Colorado Mesa University retirement plans

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  1. Updates to the Colorado Mesa University retirement plans

  2. Overview of topics we’ll be covering today What stays the same What is different New core investment menu Key dates Next steps you can take

  3. Individual Transition Experience • The transition will be different for each participant, based on: • Current vendor—TIAA, Fidelity, VALIC, MetLife • Investment types –annuities, mutual funds • Contract types—group, individual • Today, focus on commonalities • Use one-on-one sessions for individual advice

  4. What Stays the Same? • Two Plans • Mandatory participation 401(a)—employer & employee contribution • Voluntary participation 403(b)—employee contribution only • Eligibility requirements for participation • Employer contribution schedule • 401(a): CMU 11.4% + employee 8.0% • 403(b): 100% employee contribution • Vesting schedule • immediate • Assistance • TIAA • And new……Insight Financial Solutions

  5. What is Different? • TIAA is the single service provider • New Core Investment Line-up • Fee Structure with Lower Costs • TIAA Brokerage Recordkeeping Fee TIAA Plan Servicing Fee Deducted from each investment quarterly

  6. How to use your investment menu Option 1 Select a diversified, professionally managed portfolio Choose a target-date fund if you want a simple yet diversified approach to investing* Option 2 Build your own portfolio Create an investment strategy, based upon your goals, with assistance from TIAA * Diversification is a technique to help reduce risk. It is not guaranteed to protect against loss.

  7. Option 1: Select a target-date fund • Each fund is invested in a broad range of investments, such as stocks, real estate and bonds. • As the target date approaches, the mix of assets is adjusted to become more conservative. • The target date approximates when investors may plan (but are not required) to start making withdrawals. • Automatic Re-balancing Example: 2030 Fund gFixed Income Funds gEquities and Real Estate Securities Funds

  8. Option 1: Select a target-date fund More Aggressive More Conservative If you don’t choose any investment options, your new contributions will be invested in the target-date fund closest to the year you turn 65.

  9. Option 2: Build your own portfolio GUARANTEED* Guarantees a set rate of return More Aggressive More Conservative The CMU core investment menu includes a broad range of options so you can choose which ones suit your needs. MONEY MARKET Cash-equivalent options FIXED INCOME (BONDS) Pays a fixed level of interest EQUITIES Invest in a company or companies For your specific investment options, go to TIAA.org/mesa. * Options offered in the “Guaranteed” asset class are subject to the claims-paying ability of the issuing company. Investing involves risk of loss of principal. Diversification is a technique to help reduce risk. It is not guaranteed to protect against loss.

  10. TIAA Brokerage Features: You can choose your own investments Access thousands of mutual funds Minimum to invest Buy, sell or transfer funds online or by phone Brokerage service fees for transactions may apply Reminder: CMU will not monitor performance of brokerage services investment options TIAA does not offer investment advice for brokerage investment options 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 and click on Learn about fees for a complete list of commissions and fees. 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 available to participants who maintain both a legitimate U.S. residential address and a legitimate U.S. mailing address.

  11. Key dates

  12. Key dates

  13. What’s happening to my beneficiary--UPDATE • Change from Transition Guide: Default = estate • New Default: Surviving Spouse; if none, children per stirpes; if none, estate • TIAA participants: Your current beneficiary designation(s) will be applied to your new account(s). • Current Fidelity, MetLife, and VALIC participants: Your beneficiary designation will be set to the Default Beneficiary. • You may access your new TIAA account starting March 15 to update your beneficiary designation via the website or contacting the 1-800 number.

  14. Next steps you can take Review the transition guide Update / complete beneficiary designation at TIAA.org beginning March 15 Review your account and beneficiaries at TIAA.org/mesa once the transition is over Manage your account day-to-day at TIAA.org Use the advice tools at TIAA.org/tools April 2 – 5: Get personalized retirement plan advice at no additional cost from TIAA or Insight Financial Solutions (970) 986-4503 www.ifsgj.com Call TIAA at 800-732-8353 Weekdays, 6 a.m to 6 p.m (MT) TIAA.org/schedulenow

  15. Next steps you can take Log in to your account and review Actions Review investment options Manage your portfolio Update beneficiary information Change your contributions www.tiaa.org/mesa

  16. Maximize the Power of Your Plan • Allows you to save and invest for retirement • Can be a significant part of your future savings • CMU employees do not pay into Social Security • You make mandatory contributions to 401(a) • You can also choose to make additional, voluntary contributions to 403(b) • Best Practices – suggest saving 10-15% on top of Social Security (12.4%), Pension or other sources (401a) • A typical couple at age 65 can expect to spend on healthcare over remaining lifetime $200-$600k, depending on need for nursing home care

  17. Maximize the power of your retirement plan 403(b) Plans $19,000 2019 IRS limits for all types of salary deferral retirement plans 403(b) Plans $25,000 Employees under age 50 $0 $5,000 $10,000 $15,000 $20,000 $25,000 Employees age 50 or older

  18. Maximize the power of your retirement plan The earlier you start, the less you’ll have to sacrifice to pursue the retirement you want. For example, to reach approximately $500,000 by age 67: This hypothetical illustration assumes a 6% annual return on investment, and a 3% increase every year to account for inflation. It does not represent the actual performance of any TIAA account nor does it reflect expenses or taxes, which would reduce performance. Total returns and the principal value of the accounts will fluctuate, and yields may vary. This table cannot predict or project investment performance.

  19. Do you have questions about your current account? In addition to the April on campus meetings… Insight Financial Solutions Kevin Price Kevin.price@lpl.com Jason Stanfield Jason.stanfield@lpl.com 970-986-8053 TIAA 800-732-8353 You can also email questions that are “general in nature” to: Amy Grimes, Human Resources aegrimes@coloradomesa.edu These questions will be used for the Q & A which is located on the HR Website: https://www.coloradomesa.edu/human-resources/faculty-staff/retirement-transition-faqs.html

  20. Questions?

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