Retirement Plan Update

The Retirement Plan Committee (RPC) recently conducted a review of the investments offered in our 403(b) Plan (the fancy name for our retirement plan). Based on feedback we’ve heard from some of you and the advice of our investment consultant, the RPC has decided to expand our guaranteed investment options effective May 20, 2015. The RPC elected to add the TIAA Stable Value fund and the TIAA Traditional to our current investment options. These investments are a bit unique. Please see the below information and links for more information on these funds.

TIAA Stable Value
TIAA Stable Value is designed for participants seeking a guaranteed savings option for a portion of their retirement portfolio. With TIAA Stable Value, you receive a guaranteed minimum interest rate that is historically higher than money markets but lower that TIAA Traditional. TIAA Stable Value is a liquid account; you can access your money to make transfers and withdrawals at any time. However, to gain the higher interest rates over money market funds, there is a “competing funds” rule you need to be aware of. The "competing funds” rules says that because your plan offers a money market and a short-term bond, if a participant wants to transfer money from TIAA Stable Value to one of those options, the amount you transfer must first be directed to a non-competing option (for example, a stock fund or long-term bond fund), where it must remain for 90 days before being transferred to the “competing fund.” While this is rule is different than what you are used to, we understand this to be the industry standard for these types of funds and we believe the higher interest rate compensations participants for this slight inconvenience. For more info on this product, please see: TAA Stable Value: http://enroll.tiaa-cref.org/resources/ffs/878094400.pdf

TIAA Traditional
A number of you requested to have TIAA Traditional available as a current investment option, and the RPC has elected to offer TIAA Traditional RC. As many of you know, Traditional has a significantly higher return than the money market fund and even short-term bonds. Traditional even has a higher return than the above described Stable Value; however, there are some liquidity provisions you will want to be aware of. Withdrawals and transfers from TIAA Traditional must be spread over an 84-month period (7 years). Or, you can receive a full withdrawal within 120 days after leaving employment, but it would be subject to a 2.5% surrender charge. For more info on this product, please see: Traditional RC http://enroll.tiaa-cref.org/resources/ffs/878094101-RC.pdf