Transcript 2010 Making the most of your workplace transition

Making the most of your
Arizona University System
Optional Retirement Plan
Fund Changes and Transition
What you’ll learn today
 What is changing and why
 New investment lineup
 How changes may impact you
 Examples of investment option
changes
 Key dates and actions to consider
 Where to go for more information
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What is changing
 Plan design and investments*.
» Tier I changing from core investments and default lifecycle funds to
LifeCycle Options
» Tier II changing from unmonitored funds and annuities to
monitored Core Options
» Tier III changing from self-directed brokerage account to Specialty
Options that include self directed brokerage accounts with mutual
funds and exchange traded funds and select annuities offered by
TIAA-CREF. You may contribute 100% of contributions in the selfdirected brokerage account.
 VALIC will no longer be an available investment provider.
 If you are not invested in the funds that will be in the new tier lineup
or you are a VALIC participant, you may want to take action now.
*Determined upon a careful and thorough review by Arizona University System and Mercer Investment Consulting.
An annuity is not a mutual fund. Interest rates and time periods vary depending on the annuity contract.
Guarantees are subject to the claims paying ability of the insurance company.
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Why the changes?
 More control over monitoring of investment options.
 Lower fees.
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New tiered investment lineup with TIAACREF on September 16, 2011
Tier I: Asset Allocation Options
TIAA-CREF Lifecycle Mutual Funds
Tier II: Core Options
Vanguard Prime Money Market Fund Institutional Shares
Wells Fargo Stable Value
PIMCO Total Return Fund – Institutional Class
Principal Diversified Real Asset Institutional Class
Vanguard Institutional Index Fund Institutional Shares
Large Cap Stock Fund 33.3333% Vanguard Windsor II Investor Class
33.3333% American Funds Fundamental Investors R6
33.3333% T. Rowe Price Growth Stock
American Funds Euro Pacific Fund R6
Eaton Vance Atlanta SMID Cap Fund Class I
Tier III: Specialty Options
Self-directed Brokerage account
TIAA Traditional
CREF Money Market account
CREF Stock account
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New tiered investment lineup with Fidelity on
September 19, 2011
Tier I: LifeCycle Options
Fidelity Freedom K® Funds
Tier II: Core Options
Vanguard Prime Money Market Fund Institutional Shares
Managed Income Portfolio
PIMCO Total Return Fund – Institutional Class
Principal Diversified Real Asset Institutional Class
Vanguard Institutional Index Fund Institutional Shares
Large Cap Stock Fund 25% American Beacon Large Cap Value
25% American Funds Fundamental Investor R5
25% Fidelity Contrafund
25% Fidelity Growth Company Fund
Fidelity Diversified International Fund – Class K
Eaton Vance Atlanta SMID Cap Fund Class I
Tier III: Specialty Option
Fidelity BrokerageLink®
A self-directed brokerage account may entail greater risk and is not appropriate for everyone. Additional fees apply
to a BrokerageLink account.
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How the changes may impact Fidelity
and TIAA-CREF Participants
 Future contributions that are not part of the new investment lineup
will be redirected to the new investment lineup in September.
 Remaining account balances that are not part of the new investment
lineup will be reallocated in December 2011, to the new investment
lineup. (Annuity balances will not transfer.)
 To direct future contributions outside of the new investment lineup,
you may do so through a brokerage account.
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How the changes may impact VALIC
participants
 VALIC accounts will be restricted from investment changes and
withdrawals beginning at 1 p.m. PT on September 19, 2011.
 Future contributions and mutual fund account balances at VALIC
are scheduled to be transferred to Fidelity on September 28, 2011,
and will be mapped to the new tiered investment lineup, unless
directed otherwise. Annuity balances will not transfer.
 The last contribution that will be sent to VALIC will be in your
September 9, 2011 paycheck unless you direct otherwise sooner.
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Example: How future contributions and
balances at VALIC will transfer to new
investment lineup at Fidelity as of
September 28, 2011.
Current investment options
at VALIC:
New investment options at
Fidelity:
Old investment option
New investment option
ABC Fund
XYZ Fund
The details of the VALIC transfer of assets will be included in the VALIC transition notice
scheduled to mail mid August, 2011.
Arizona University System has decided to replace the current investment options at VALIC with what they believe to
be similar investments. Once the transition is complete, participants will be able to request exchanges (transfers)
among the new investment lineup at Fidelity.
The transfer of assets depends on the timely liquidation and delivery of assets from VALIC. A delay may result in a
change to the above noted dates.
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Example: TIAA-CREF / Fidelity investment
option changes
Contributions directed to the
current investment option:
will be redirected to the new
investment option as of Sept. 16
(TIAA-CREF) / Sept. 19 (Fidelity)
Old Investment option
New investment option
ABC Fund
XYZ Fund
Remaining balances in the current
investment option:
will be reallocated to the new
investment option as of Dec. 13
(TIAA-CREF) / Dec. 19 (Fidelity)
Old Investment option
New investment option
ABC Fund
XYZ Fund
The details of the fund changes are scheduled to mail mid August, 2011.
The reallocation of assets depends on the timely liquidation of those assets. A delay in liquidation may result in a change to the above noted dates.
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Key dates
TIAA-CREF
Fidelity
July 1, 2011
July 1, 2011
September 16,
2011
September 2,
2011
September 16,
2011
1 p.m. PT on
September 19,
2011
Self-directed Brokerage applications must be completed
by this date if you wish to continue to invest balances in
funds outside of the new tiered investment lineup.
December 13,
2011
December 5,
2011
Remaining account balances in the investment options no
longer available will be reallocated to the new tiered
investment lineup. Changes to account balances must be
made by this date.
December 13,
2011
1 p.m. PT on
December
19, 2011
New investment options are available.
Self-directed Brokerage applications are due by this date
if you wish to continue to direct future contributions to
funds outside of the new tiered investment lineup.
New tiered investment lineup is available. Investments
options not in the new investment lineup will no longer be
available and will be restricted from new contributions or
exchanges in.
Future contributions are redirected to the new tiered
investment lineup. Changes to how future contributions
are directed must be made by this date.
The reallocation of assets depends on the timely liquidation of those assets. A delay in liquidation may result in a change to the above noted dates.
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Actions to consider for Fidelity and TIAA-CREF
participants
 Review current investment allocations and how your account
balances are invested.
 Review the fund changes notice mailed in mid-August to
determine how current investment allocations and account
balances will be directed to the new investment lineup.
 Call Fidelity or TIAA-CREF for assistance with reallocating
investments or to open a brokerage account.
 If no changes are needed, no action is required.
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Key dates for VALIC transition
Last day at VALIC to request paperwork required for a
hardship withdrawal or distribution.
Last day to elect a new provider in your University’s online
enrollment system. You should open your account with Fidelity
or TIAA-CREF at the same time you make you make your new
provider election.
Last day at VALIC to process paperwork for a transfer,
hardship withdrawal or distribution.
Last day at VALIC to make investment election or exchanges
to your VALIC account.
1 p.m. PT on
September 12,
2011
5 p.m. PT on
September 15,
2011
1 p.m. PT on
September 19,
2011
Blackout period begins.
VALIC mutual fund account balances are transferred to
Fidelity if no prior action is taken.
Blackout period ends. Fidelity accounts and services are
available including online beneficiary designations.
September 28,
2011
Week of October
9, 2011
The effective date of plan changes and end of the Transition Period depend upon the accurate, timely transfer of data from VALIC. If this does not
occur, the delivery of services and investment options described herein could be delayed.
Please be sure you understand the tax consequences of any withdrawal from the plan.
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Action to consider for VALIC participants
 Review current investment allocations and how your mutual fund
account balances are invested at VALIC.
 Review the VALIC transition letter mailed in mid-August, 2011.
 Future contributions and mutual fund balances will transfer to Fidelity
unless you direct otherwise.
» If you will be actively electing a new vendor, make the election in your
University’s enrollment system by 5 p.m. on September 15, 2011. Open
an account with Fidelity or TIAA-CREF at the same time.
» If changes to your current investment allocations or transfer/withdrawals
of account balances are needed, make them with VALIC prior to 1 p.m.
PT on September 19, 2011, when the blackout period begins.
 If no changes are needed, no action is required. Your current
investment allocations and mutual fund account balances will transfer
to Fidelity.
 Call Fidelity at 800-328-6608 or TIAA-CREF at 866-548-3705, ext.
457706 for help with questions and to learn more about your ORP
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changes.
Where to go for more information
 Fidelity and TIAA-CREF representatives are available to help with
questions.
 Mid-August mailings will include more details regarding these
changes and your options.
 August & September on-campus meetings.
Fidelity Workplace Planning and Guidance Consultant Group
800.328.6608
www.mysavingsatwork.com/atwork/abor.htm
TIAA-CREF Counseling Center
800.842.2252
www.tiaa-cref.org/azus
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Important information
• Before investing in any investment option, please carefully
consider the investment objectives, risks, charges, and
expenses. For this and other information, call your service
provider for a free mutual fund or variable annuity prospectus
or, if available, a summary prospectus. For information on
fixed annuities, contact your service provider to request a fact
sheet. Read them carefully before you invest.
• Keep in mind investing involves risk. The value of your investment
will fluctuate over time and you may gain or lose money.
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Unless otherwise noted, transaction requests confirmed after the close of the market, normally 4 p.m. Eastern
time, or on weekends or holidays, will receive the next available closing prices.
The investment options available through the plan reserve the right to modify or withdraw the exchange privilege.
TIAA-CREF or VALIC and Fidelity Investments are independent entities and are not legally affiliated.
© 2011 FMR LLC. All rights reserved.
Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem St, Smithfield, RI 02917
588288.2.0
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