Retirement Plan Changes and New Online System January, 2018 What - - PowerPoint PPT Presentation

Retirement Plan Changes and New Online System

January, 2018

What we’ll discuss today

• Overview of plan changes
• How to:
• 1. Change or add investment providers (TIAA

and/or Fidelity)

• 2. How to manage elective deferrals
• 3. How to make changes to investment choices
• 4. How to move balances

2

Retirement Plan Overview

Defined Benefit vs. Defined Contribution

3

Retirement Plans

4

Qualifying for Retirement

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Social Security Eligibility

Year of Birth Normal Retirement Age 1937 65 1938 65 + 2 months 1939 65 + 4 months 1940 65 + 6 months 1941 65 + 8 months 1942 65 + 10 months 1943-1954 66 1955 66 + 2 months 1956 66 + 4 months 1957 66 + 6 months 1958 66 + 8 months 1959 66 + 10 months 1960 or later 67

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403 (b) Tax Savings and 457 Deferred Compensation Distributions

• 10% penalty plus State and Federal taxes if you take a distribution prior to age

59 ½, unless you qualify as retired. Should consult with a tax advisor.

• Age 59 ½ - no penalty (must pay State and Federal taxes).
• Minimum distribution mandatory at age 70 ½ (must pay State and Federal

taxes).

Third Party Record Keepers

TIAA Fidelity ICMA-RC

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Overview Retirement Plan Changes at W&M

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ORP

• Future contributions beginning with the

January 16, 2018, payroll are being directed to investments on the new investment menu.

• Current balances remain invested where

they are*

• You may change how your future

contributions are invested. *Except for Stable Value Fund which is replaced with New York Life Anchor Fund

403(b) & Cash Match

• Future contributions beginning with the

January 16, 2018 payroll, will be directed to the target-date funds on the new investment menu.

• Current balances remain invested where

they are*

• You may change how your future

contributions are invested.

ORP, 403(b) & Cash Match Plans – beginning January 1, 2018

• New investment lineup & brokerage option
• Current TIAA & Fidelity contracts and the related balances moved the week ending January

5, 2018, to the corresponding William & Mary Plans

• New online retirement management portal (January 30)
• Existing employees can choose to invest in TIAA, Fidelity, or both (January 30)

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Accessing Your Account(s)

As of the week ending January 5, 2018, no ORP balances remain in VRS.

• All balances moved to William & Mary

Plans.

• May log into VRS account but it will reflect

no balance.

• Access accounts via tiaa.org/wm or

netbenefits.fidelity.com.

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Changing Future Contributions

You may change the way your future contributions are directed for the first payroll to the new plans on January 16, 2018

• Do so by January 15, 2018.
• Log on to your TIAA account at tiaa.org/wm or

Fidelity account at netbenefits.fidelity.com.

• Call TIAA or Fidelity.
• May change investments at any point in the future.

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Moving Existing Balances

Your existing balances remain invested in old funds and will not be mapped to new funds. However, you may choose to move funds into new investment

• ptions.
• May be done at any time
• Call TIAA or Fidelity

– Recommend speaking to a financial advisor

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Brokerage

• Available on William & Mary ORP, 403(b) and Cash

Match plans.

• Gives a choice of thousands of mutual funds and

many well-known fund families beyond the core investment options.

• William & Mary will not monitor the performance of the

funds offered through the brokerage account.

• Plan participants will bear the risk of investing through

the brokerage account. William & Mary recommends that you exercise caution and seek professional guidance when investing through a brokerage account.

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New Online System

Use the online portal to:

• Enroll in the retirement plans
• View all ORP and 403(b) retirement plan balances

regardless of investment provider

• Start or change voluntary contributions
• Select investment providers
• Select new investment options via links to each

provider’s website

• Access Brokerage Services
• Manage your account on an ongoing basis

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New Online System

Designed to give you greater access to your retirement account, eliminate paper enrollment and enhance your access and experience.

• TIAA, as one of your retirement providers, will also serve as

the primary point of contact for the online portal.

• The system is scheduled to be available beginning January

30, 2018. Once the system is live, you’ll receive an email with instructions on how to access the online portal.

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Starting Point for Employee

TIAA CONFIDENTIAL. NOT FOR DISTRIBUTION 18

Employee starts from W&M site and clicks on Retirement@Work. Register or log in and be taken to the Retirement@Work landing page.

Landing Page – Existing Employee

TIAA CONFIDENTIAL. NOT FOR DISTRIBUTION 19

To update elections, Employee first clicks this button

Plan Summary

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• 1. Get a snapshot of your account,

including:

• Your consolidated balance across

investment providers and by plan

• Your contribution amount for each provider
• Recent transactions
• 2. Learn more about your retirement plan:
• Review important plan documents
• View the list of available investment choices
• Link to the investment providers’ websites
• 3. Access calculators and retirement

planning tools, such as:

• Informative articles about budgeting and
• ther financial topics
• Retirement Advisor, which provides

personalized action plans with savings and investment recommendations

• 360° Financial View, which helps you

monitor all of your finances and set goals

Click “Review & Make Changes” to change contribution amount or vendor selection.

Manage Contributions

21 Click Manage Elections to change your contribution amount and/or investment providers.

Select Investment Provider(s)

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.

Choose if you want to direct all contribution types (e.g., employer and employee) to the same investment provider(s). Then enter the amount that should go to each provider

Visit Provider Site(s)

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If you’ve selected a new provider

• r investment, you now need to

visit the provider’s website to either open an account or update your investment choices. Important note: If you’ve chosen investments from more than one provider, you’ll need to come back to this section of Retirement@Work to access each provider’s website.

Click the applicable provider button to go to its website.

Next Steps

• Update investments if you choose to do so

before January 16, 2018 for January 16 payroll.

– May update at any point after as well

• New online system live January 30

– You will receive a user guide via email

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Questions?

• jmpoma@wm.edu
• r
• askhr@wm.edu

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