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New Retirement Plan FAQ

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Will my benefit change under the new plan?

No, the 8% contribution and the 50% match up to 4% is not changing.  If you haven't started contributing to your plan, you might want to begin in order to receive the 50% match from the University.

When will the new plan begin?

This change will be effective March 31, 2016 with all new contributions going to the new plan with the payroll paid on April 15 (salary) and April 22 (hourly).

I currently voluntarily contribute money to the plan and receive matching funds from the University. Do I need to do anything for this University provided match to continue into the future?

Yes, if your voluntary retirement plan contributions were previously sent to VALIC or Voya, you will need to complete a new Voluntary Retirement Plan Contribution form authorizing Cedarville to withhold your voluntary contributions and send them to your new plan at TIAA. Only employees previously making voluntary contributions to VALIC or Voya will need to complete the form.  For those that are affected, if you do nothing, your contributions that are matched, will end with the payroll paid on April 15 (salary) and April 22 (hourly).  Employees that are currently making voluntary contributions to TIAA will have no change to the amount withheld from each paycheck in the future.

Will there by any changes to the vesting rules of the plan?

No, there is no change to the vesting rules.  All contributions, either from the University or from your voluntarily contributions, vest immediately.

What will my investment choices be in the new plan?

A Retirement Committee made up of faculty and staff worked with an independent investment consultant to offer a variety of investment choices.  The committee chose investments that are similar to the current options and represent all major asset types.  The investment line-up is broken down into target date funds, actively managed funds, Biblical Responsible Investments (BRIs), and index funds.

Can I continue to invest in Voya or VALIC under the new plan?

No, Voya and VALIC investments are no longer available under the new plan.

What will happen to my current investments?

Your investments will stay where they are with TIAA, Voya, or VALIC, unless you decide to transfer your investments to the new plan.  Employees and their spouses may attend group or individual meetings about the transition.  Ample time will be provided for all employees to have individual meetings with Millennium on campus.

Will I be able to move my current investments to one of the new investments offered?

Yes, you will be able to move your current investments to the new investments being offered.  We will have meetings on campus to help with this.

Will someone be available to help me with the transition?

Yes, the University hired Millennium Advisory Services (MAS) to provide independent advice tailored to participants' specific needs and situations during the transition.  Both TIAA and MAS will provide ongoing advice, at the participants choosing, during and after the transition.

What is TIAA's role in the new plan?

TIAA will now be the record-keeper for the new 403(b) retirement plan.  All funds will be sent to TIAA and then invested according to your investment selections.  You will be able to view all of your investments on one statement or website.

How can I find out more information about the new plan?

Multiple emails and other communications will be send to you during February and March 2016.  Attend one of the  group presentations to learn more about the upcoming changes and actions you should take.  Schedule an individual  counseling session with Millennium Advisory Service.

Why is the pension plan changing now?

The Department of Labor has released new rules regulating 403(b) pension plans.  Under these regulations, employers must take a more active role in administering their 403(b) plans. The new pension plan meets the DOL requirements and is consistent with industry best practices.

How do I view how much I am contributing right now?

You will need to View Your Payroll Deduction option in CedarInfo.

Should I continue "Retirement Planning" with my current vendor knowing it could change in the near future?

You may work with anyone you choose.  Millennium Advisory Services has unique expertise in these types of transitions, and we encourage you to meet with them at least once.  TIAA will continue to have an advisor visit campus monthly.

How does this affect my taxes?

This change shouldn't affect your taxes.  Because the University can't provide tax advice, we would suggest that you schedule an appointment with Millennium Advisory Services when they are on campus.

I'm invested in TIAA Traditional and CREF Stock, will there be any changes with these investments?

Yes,  CREF Stock is no longer an investment option.  While TIAA Traditional is still an investment option there are changes to its structure and interest rates.  To learn more about TIAA Traditional in the new plan attend a group seminar or schedule an individual session with Millennium Advisory Services.

I'm invested in the TIAA-CREF Lifecycle funds already, is there any benefit to moving my investments to the new plan?

Yes,  the University was able to negotiate lower fees for your investments and less expensive record-keeper fees.

What are Biblical Responsible Investments (BRI) and why isn't Guidestone one of the investment options?

BRI's are investments that attempt to not invest in industries in conflict with Biblical principles.  Guidestone was considered but their investments are not available on TIAA's record-keeping platform.

Who will benefit the most from a single record-keeper? Is there one type of participant who stands to gain more than another?

The transition to a single record-keeper should benefit all employees.  The University was successful in negotiating lower fees paid by employees by consolidating the recordkeeping function.  The amount of benefit will vary depending on current and future investment choices.  All employees will benefit from more focused education and communication from the service providers.  There will be greater access to individual and group meetings on-campus with representatives from Millennium Advisory Services and TIAA.

Will our service level change when we have a single record-keeper under the new arrangement?

Your service level should improve under the new plan.  A single record-keeper will be able to see all your investments in the plan.  This will allow TIAA to have more information when providing guidance.

Will I continue to have access to the annual fee disclosure documents?

Yes, Cedarville will continue to provide annual participant fee disclosure documents. The Retirement Committee will continue to review fees annually.  The annual fee disclosure documents from the old plans at TIAA, VALIC, and Voya will no longer be available.

Why was TIAA chosen as record-keeper?

After receiving bids from multiple record-keeping companies, TIAA became the clear choice because their fees were highly competitive, the University and plan participants have received good services in the past, it will be less disruptive for plan participants, and we have a high trust in the firm.

Who are Sageview and Millennium Advisory Services? Will they increase my cost?

Sageview and Millennium Advisory Services are independent fiduciary consultants hired and paid by the University.  Sageview will help the Retirement Committee to select best in class investments and assist the University to meet its fiduciary obligations in the plan.  Millennium Advisory Services was hired to help employees plan for retirement, make appropriate investment choices, and assist in the transition.

Who is going to monitor the plan fees and how often?

The Retirement Committee will meet with Sageview, our independent pension expert, at least annually to review fees and investment manager service.  The University could make a change in the future if the facts warrant it.

Does the University save money with this change?

The University's direct expenses related to running the pension plan are not being reduced.  The indirect benefit to the University comes in the form of administrative time (Human Resources and Accounting-Finance offices) spent on managing three record-keepers instead of one.

About how much will participants save with the new agreement? Is there a way to quantify the amount?

While it is hard to quantify savings as each participant invests differently and will incur different expenses in various investments, the record-keeping costs are being reduced by at least 35%.

When can I start taking retirement income from the new plan?

You can start taking a distribution, or retirement income, at the normal retirement age of 59½.

I was just hired recently, should I wait to enroll in the retirement plan?

No, please enroll now.  You can start contributing your own funds right away.  After meeting eligibility requirements you will start to receive the University's contribution and match.

Who do I contact with questions?

We would highly suggest that you attend one of the meetings with Millennium Advisory Services and if necessary an individual session.  If you still have questions about the change you can email hr@cedarville.edu
Updated: 2016-02.03