May 1, 2024 Transition to TIAA as the Single Service Provider for the Skidmore College Retirement Plans
At Skidmore College, the financial wellbeing of our faculty, staff, and retirees is very important. The Skidmore College Retirement Plan and the Skidmore College 403(b) Retirement Plan for Employees Represented by UPSEU Local 1222 are some of the most valuable benefits we offer. In addition to significant contributions by the College on your behalf, these plans provide a convenient, flexible way to save for the future while keeping your costs low.
As sponsor and administrator of the retirement plans, Skidmore College is responsible for periodically reviewing the plans’ range of investment options and investment option performance, selecting a service provider for the plans, evaluating the services they will provide to the plans, and monitoring the fees charged by the service provider and plan investments. These duties are carried out by the College’s Retirement Oversight Committee (ROC), which meets quarterly and includes staff from the Division of Finance and Administration and Division of General Counsel and Human Resources and a faculty member from the Division of Academic Affairs.
The ROC, with assistance from the College’s independent investment manager, Fiducient Advisors, recently conducted its review of the retirement plans and recommended consolidating our plan administration with one service provider, TIAA. This recommendation was based on several benefits to employees who participate in the College’s retirement plans, including:
- Leveraging the College’s $300 million in defined contribution retirement plan assets
to reduce overall administrative expenses paid by participants;
- Easier retirement planning through a dedicated website with access to a single investment
menu consisting of both TIAA and Vanguard offerings;
- Enhanced and consistent services and education for plan participants.
This change is anticipated to occur on May 1, 2024, and does not require you to take any action at this time. The College is announcing this change to you now in order to provide clear and transparent expectations of what you can expect in the months leading up to this transition. Further details, including a Transition Guide, educational sessions, and one-on-one financial consulting, will be provided in the spring.
Importantly, this recommendation does not affect the design of the College’s retirement
plans, including the College’s contribution rates, eligibility to participate in the
retirement plans, or vesting rights. In May 2024, we will introduce:
- TIAA as the single service provider
TIAA has been selected to deliver comprehensive retirement plan services at a reasonable cost.
- New TIAA accounts
If you have investments through Vanguard, without an active TIAA account, new plan accounts will be automatically created for you. You will receive instructions for accessing and managing your new accounts as well as information on any changes to investment options.
- Automatic transition of Vanguard funds to TIAA
The transition of Vanguard funds to TIAA will be automatic as of May 1, 2024. Prior to that date and after the transition period is complete, you will retain full control over the allocation of your investments. Active participants over 59.5 and retiree participants can transfer their assets with Vanguard to a Vanguard IRA if desired.
- Streamlined enrollment process
The TIAA online enrollment platform will replace the current salary deferral process through Oracle. This change will allow participants to manage all aspects of their accounts (contribution rates, investment elections, beneficiary elections) via a single site.
- Changes to retirement plan fees
There will be changes to some fees and the way fees are assessed. We will provide additional details explaining the changes and helpful information you can use as you consider your retirement plan choices.
Where to Find Additional Information
The Human Resources Benefits website has a page dedicated to providing education and resources regarding this transition. You can find answers to frequently asked questions here. The website will be updated as new material becomes available from TIAA, including a detailed Transition Guide that will be distributed by TIAA to all participants in spring 2024, as well as dates of webinars and instructions for setting up an optional meeting with TIAA for one-on-one assistance. It is our goal to keep you informed throughout the upcoming transition. If you have any questions, please contact benefitsHR@skidmore.edu.