Transcript Tennessee Optional Retirement Plan

Tennessee Optional
Retirement Plan
April 14, 2010
ORP is Changing
Tennessee Optional Retirement Plan
Welcome!

Tennessee Optional Retirement Plan (ORP)
is an alternative to the State defined benefit
retirement plan, Tennessee Consolidated
Retirement System (TCRS)

Changes are affecting current participants
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Tennessee ORP Changes
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About 1 Hour
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Overview Optional Retirement Plan (ORP)
Service Model changes
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ING, TIAA-CREF, and VALIC have new
investment options and program
enhancements.
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Education Session in four parts
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Tennessee ORP Changes
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Plan Sponsors
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State of Tennessee
Beth Chapman
Service Providers
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TIAA CREF
VALIC
ING
Chris Lynch
Brad Hope
Clint LeGeyt
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What’s New?
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No further deposits to your current annuity
contracts starting July 1, 2010
New investment options
Fee reductions
Greater transparency of fees for service
Greater flexibility to change investment
options within the plan
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What’s New?
Optional Retirement Plan

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Investment advice
online;
All three providers offer

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Increased internet
transaction access and
statement availability
No Fee Option
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Tennessee ORP Changes

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Current investment choices will no longer be
effective after June 30, 2010.
Take action now to select investment
options.
If you do not select new investment options,
you will be defaulted into a target date fund
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Act promptly
1.
2.
3.
4.
5.
Select vendor(s) to receive the employer
deposits to your account
Percentage to each vendor
Select investment options
Name your beneficiary
Submit forms by May 14, 2010 to campus
HR Office
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What if I Don’t?
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Percentage to provider unchanged.
Deposits after June 30, 2010 will go into a
target date fund.
Is this right for you?
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What about my current ORP Contract?
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No future deposits to your ORP contract.
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New investments have no life insurance
component.
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Any money you transfer out of your
annuity contract cannot later be
redeposited
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Tennessee ORP Changes
State Contributions
will be deposited to:
Current plan contract
thru 6-30-2010
New contract effective
7-1-2010
Current accumulations
• can remain
OR
•can be transferred
•New features
•Designate beneficiary for the
new contract
•Consider investment strategy
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Your Funds Are Still Invested
Your ORP Account/
Contract Balance
June 30
July 1, 2010
YES
YES
YES
YES
You Choose Investments
YES
YES
State Contributes
YES
YES
Fully Invested until You
withdraw
YES
YES
State Contributes Before
July 1
YES
NO
State Contributes After
July 1
NO
YES
YES
YES
Fully Vested
You Choose ORP
Service Providers
Investments Earn after
June 30
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What Didn’t Change?
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ORP is still a source of life payments to you upon
retirement.
No more than half of your ORP balance in a lump
sum.
If you take a lump sum distribution you must annuitize an
equal amount at the same time.
ING, TIAA-CREF, and VALIC will continue to provide
ORP service.
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To invest, enroll, or inquire, about
ORP call:
ING
866-776-6704
 TIAA-CREF 800-732-8353
 VALIC
800-448-2542

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Campus Human Resources Office
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UT faculty / staff Benefits Call Center at
865-946-8847 or toll free 1-888-4448847.
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TBR faculty and staff contact your
campus Human Resources or Benefits
office.
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Internet Links to ORP
http://treasury.tn.gov/orp
Thank You!
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