Dear UAH colleagues,

Thank you to all who have taken the time to attend a presentation, participate in a webinar, or meet with a retirement counselor regarding the TIAA Retiree Plus Target Date Fund transition. I want to take a moment to reiterate the purpose of this transition and provide additional clarification on some frequently asked questions.

What are Retiree Plus Target Date Funds?

The Target Date Plus model portfolios will become the new default investment option for the TIAA voluntary retirement plans, replacing the current TIAA-CREF Lifecycle Index Institutional Funds.

Why is the UA System making this transition?

The large majority of TIAA participants are enrolled in the current Lifecycle Index Funds. The new enhanced models modernize the investment menu, provide more customization, have lower expense ratios, decreased portfolio volatility, and includes guaranteed lifetime income - which in turn provides better investment options for you to save for your future.

Do these changes affect me?

If you currently contribute to the TIAA voluntary 403(b) or 457(b), have a balance in the current Retirement Choice (RC) accounts, currently contribute to a self-directed brokerage account, or have an existing retirement plan loan and/or payout annuity- these changes will impact you.

When does this transition occur?

All active contributing participants with a balance in the Retirement Choice (RC) have been enrolled in a new Retirement Choice Plus (RCP), and subscribed to the Target Date Plus model portfolio that aligns with a retirement age of 65. Current beneficiary designation(s) have been applied to the new model.  If you make no changes,  all future contributions will be directed to the new account(s) starting with the first payroll in April 2024. Existing account balances will transfer on May 3, 2024.

Should I opt out or unsubscribe from the new model?

If you are not currently enrolled in a Target Date Life Cycle Fund and have selected your investment portfolio or worked with a retirement consultant to select your investment portfolio, you will need to unsubscribe from the new default model to retain your existing investments. When you unsubscribe from the Target Date Plus model service, future contributions will be directed to your existing RC and/or RCP account and into the investments you chose during the unsubscribe process. Page 12 of the transition guide contains a QR code that directs you to a step by step instructional video on how to personalize or unsubscribe from the model service.

If you are currently enrolled in a Target Date Life Cycle Fund(s) and are happy with the new default models, no action is required!

Why am I being forced to rebalance my portfolio?

If you choose to unsubscribe from the new model and currently have an allocation to both a specific investment(s) and a TIAA-CREF Lifecycle fund, you must reallocate the percentage amount that was previously allocated to the Lifecycle funds. The TIAA system will not automatically reallocate those funds. This ensures the new allocation percentages total 100%.

Can I select a Target Date Fund that does not correspond to my age?

Yes. If you decide a Target Date Plus model portfolio is right for you but want to tailor your preferences, you can provide additional information about your financial situation and preferences to help further personalize the model portfolios. You have the ability to personalize and select any of the available model portfolios.

What happens with my loan or Required Minimum Distribution (RMD)?

If this applies to you, TIAA will be mailing you additional information to your home address.

Will additional opportunities be available to speak with TIAA?

Yes, opportunities for individual on-campus meetings with a TIAA retirement counselor are available on April 17, April 24, and May 2. Meeting times are limited to 20 minutes and are subject to availability. Contact Monica Gilmer to secure your meeting time. Additionally, you may reach a TIAA representative by phone or request a virtual meeting.

Monica Gilmer

Financial Consultant | TIAA Retirement Advice & Consulting

monica.gilmer@TIAA.org

What resources are available to support me through this transition?

• Transition Guide: A comprehensive Transition Guide with detailed information has been mailed to you. Additional printed guides are available to pick up in the Human Resources Office or with your retirement counselor.
• Webinar: Follow this link to access the on-demand webinar at your convenience.
• TIAA Customer Support:  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).

Meeting Schedule

Thank you,

Holly Holladay 

Employee Benefits Team