- February 20th, 2024
- in Benefits News
The University of Alabama System is pleased to announce enhancements to the 403(b) and 457(b) voluntary retirement plans through TIAA to help employees plan and save for the future. The changes do not require you to take any action at this time, and a detailed Transition Guide with additional information will be mailed in early March 2024 to all participants who have funds in The University of Alabama System voluntary retirement plan(s). Here are some important things to know:
- Introducing Target Date Plus model portfolios. These new model portfolios, available through the TIAA RetirePlus Pro® service, will serve as the default investment option for the voluntary 403(b) and 457(b) plans, replacing the current age-based TIAA-CREF Lifecycle Index Institutional funds. The new Target Date Plus model service may make it easier to plan and save for retirement by providing you with a professionally managed model portfolio that will be rebalanced every 90 days. They are a convenient alternative to making and managing your own choices from the retirement plans’ investment lineups and offer an option for monthly income payments for life once you retire.
- New TIAA accounts. As a part of the model portfolio enhancement, for those who do not already have one*, a new Retirement Choice Plus (RCP) account with TIAA will be created for you with contributions to the new account and model portfolio on your first paycheck in April. Fund balance transfers will occur in early May for eligible investments. Your TIAA portal access information will remain the same throughout this transition.
- Share class changes. Some of the current investment options will be replaced by a lower-cost share class of the same investments.
- Program fee reduction. As a result of implementing the RetirePlus Pro service, administrative fees are being reduced to help lower the overall cost of participating in your retirement plan.
Make the most of your retirement benefits
The upcoming enhancements provide an excellent opportunity for you to revisit your retirement plan options. No action is required to default into the new Target Date Plus model portfolio, however, you will have options to personalize or unsubscribe from the model. Please carefully review the Transition Guide that will be mailed to you in early March 2024 for more details on key dates, specific action steps, upcoming informational webinars, and resources available to you.
You should be aware of the following key dates for anticipated changes and events:
|Weeks of March 18–29
|One-on-one appointments available with TIAA financial consultants to discuss plan enhancements
|TIAA Town Halls at 10 a.m., 11:30 a.m., 3 p.m. in Gorgas Library (Camellia Room)
|TIAA Town Halls at 9 a.m. or 10:30 a.m. in Gorgas Library (Camellia Room)
|Week of April 3
|Enrollment in new RCP accounts as needed* and subscription to the new Target Date Plus model service begins
|April 3–May 3
|Window for personalization of or unsubscribing from the model service
|First payroll in April
|First contribution into the new model portfolio on April 5th for non-exempt employees, and April 30th for exempt employees
|Week of May 6
|Existing balances transfer to the new accounts (if applicable) and model portfolio
It’s our goal to keep you informed throughout the upcoming transition. No action is required at this time. If you have questions or need assistance, visit TIAA.org/uasystem or call TIAA at 800-842-2252. Consultants are available every weekday from 7 a.m. to 9 p.m. (CT).
* If you participate in TIAA’s 457(b) plan, you already have a Retirement Choice Plus (RCP) account.