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403(b) Retirement PlanFrequently Asked QuestionsI heard that Mines is making changes to the voluntary 403(b) retirement savings plan. Is this true, and if so, when will it take effect?Yes, true. The effective date of the changes will be July 1, 2018.Why is Mines making changes to the plan?The regulatory environment governing 403(b) plans is evolving. Current standards of prudent practice indicate that Mines can better serve plan participants into the future by being more actively involved in options and services provided to participants. There is a shift in general industry away from multiple record keepers and this change is also reflected within institutions of higher education. Mines currently has four 403(b) plan vendors (AXA, Brighthouse/MetLife, TIAA and VALIC) with over three hundred investment choices and fees that are typically associated with individual contracts. The modernization will allow Mines to offer a simplified menu of high quality investment options, lower group / institutional level fees, fee transparency, and customized communication and education. Did Mines have expert advice with the decision and the process to identify the service provider selected - VALIC?Yes, Mines engaged Innovest Portfolio Solutions, LLC. (Innovest) to advise and assist with this transition. Innovest is based in Denver and has substantial experience assisting educational institutions with retirement plan management. They have no conflicts of interest and serve as an investment fiduciary to Mines. Innovest assists employers in overseeing more than 19 billion in assets.How was VALIC selected?After a comprehensive plan review in October of 2017, a RFP was issued. The four proposals which met the minimum requirements were evaluated by the RFP committee on a number of factors including participant services, quality of record keeping services, experience, transition plan, and fees. Two responding vendors were selected to make on-campus presentations. At the end of the process, the RFP committee selected VALIC as the sole vendor.Did all of Mines current vendors submit a bid?No. Notice of the RFP solicitation was sent to all of the current 403(b) vendors. Of Mines’ current vendors, AXA and VALIC submitted bids. Brighthouse/MetLife and TIAA did not submit bids. Vendors that did not submit bids could not be considered by the committee in accordance with procurement rules.How will these changes benefit me?This change will allow Mines to offer a simplified high qualify investment selection, custom education, a self-directed brokerage option, lower fees, and fee transparency. Licensed VALIC advisors will serve as fiduciaries to participants. This is an important legal standard for providing financial advice. It means that the VALIC financial advisor has an obligation to you to provide you advice that is solely in your best interest. Under the current 403(b) contracts, advice provided by the different record keeping firms must only meet the “suitability” standard. While this will often be congruent with advice provided under the fiduciary standard, it allows for financial advice that is simply suitable to your needs.Going forward, VALIC will provide assistance with enrollment, asset allocation, and financial planning for Mines’ 403(b) participants, even if the participant does not currently have a VALIC account. To make an appointment to meet with an advisor go to: Registration Code: 4112GOL11AC or contact:Mallory Guido – VALIC District Office Coordinator720-962-8025 or mallory.guido@Even if the fees are lower, can they really affect my future balances that much?Yes, they can. While Mines cannot give you advice or provide projections, VALIC has tools that will compare your current investments and costs to options that will be available to you. These tools can project comparative future outcomes. These comparisons can demonstrate how your potential retirement assets can grow, beyond the underlying fund performance, simply due to fee savings.Can I can continue making contributions to my current vendor or be grandfathered in?No. Starting July 1, 2018, VALIC will be Mines sole 403(b) provider. Any 403(b) contributions made via payroll deduction after July 1 will be directed to VALIC. If I cannot continue directing funds to my current provider, what happens to my existing balances?The change to the new plan does not affect existing balances. Those balances may be left with your current provider. If it is your desire to do so, the balances or portions thereof may be converted/rolled into the new plan and investment fund array. Prior to making any decision regarding your existing balances, we encourage you to meet with a VALIC financial advisor to get a thorough review of your situation.What happens with my current monthly contributions – do they stop or continue?If you do not stop your monthly 403(b) contributions, they will automatically be directed to the new 403(b) plan starting with the July semi-monthly payroll. How do I set-up a new VALIC mutual fund account?You may create your new mutual fund account starting June 8. You will not be able to set-up an account online or by phone during the period, July 2, 2018, through July 6, 2018. You have several options for creating your new account:Go to Use access code 42465101 (pre-tax contributions) Use access code 42465102 (Roth/after-tax contributions)If you have both pre-tax and Roth contributions please create both accountsRegister for an on-campus meeting with a VALIC financial advisor:Use the following link: Code: 4112GOL11ACTo schedule a meeting with a VALIC financial advisor at your convenience please contact:Mallory Guido – VALIC District Office Coordinator720-962-8025 or mallory.guido@Contact a VALIC Enrollment Specialist at 1-888-569-7055Please provide the access code 42465101 (pre-tax contributions) or 42465102 (Roth/post-tax contributions)What if I take no action and don’t set up my VALIC account?If you don’t create an account by the time contributions are received by VALIC, they will be defaulted into a target date mutual fund determined by your date of birth. VALIC still recommends that you set up an account and talk to an advisor, even if all you do is enter beneficiary information. VALIC has no way of knowing your beneficiary information without you supplying it.I don’t want to continue contributing to the 403(b). What do I need to do?You may end participation in the 403(b) at any time by submitting a Tax Sheltered Annuity Form to the Payroll Office by the applicable month’s payroll deadline. The July payroll deadline for submitting forms is July 10 for monthly pay and July 5th for semi-monthly pay.What about my current account balance?You have the option of leaving existing funds with your current record keeper or converting/rolling them into the new 403(b) plan. For assistance with conversions/ rollovers, please set-up an appointment with a financial advisor (see above). Depending on your record keeper’s requirements, conversions/roll overs to the new plan can be a bit complex and have surrender charges. VALIC will identify any charges, explain how you can avoid those charges, and assist with the paperwork requirements that may exist.Will it cost me anything to convert/rollover assets to the new plan?VALIC will not charge any fees to convert/roll assets into the plan. Depending on your current vendor and investment selections, you may be subject to surrender fees. We suggest you work a VALIC financial advisor to determine the best options for your current assets.What if I already have a 403(b) with VALIC?Since we are changing investment platforms, you will need to create a new account with VALIC. I already participate with VALIC. Will my existing VALIC account balances automatically roll into the new plan and investment options?No. If you have existing VALIC account balances, simply meet with a VALIC financial advisor and s/he will help you through the process to move funds. VALIC is waiving all fees and surrender charges that you might have on your existing VALIC account balances so the roll into the new plan will not cost your anything. Once rolled, you will see potentially lower fees on your accounts than under the current plan. Of course, lowered fees assume that you do not roll the balance into a fund that is actively managed with higher fees (e.g., moving funds from a low cost bond fund or target date fund into an actively managed fund or into the self-directed brokerage option).What is a “quiet period” and why does it matter?During the quiet period which runs from July 2, through July 6, you will not be able to create an account on the new platform. If you are a current VALIC participant you will not be able to change investments, add funds, request a loan or withdrawal funds. Does this change to the Mines 403(b) plan affect the PERAPlus 401(k) or 457 plans?No, this change does not affect the PERAPlus plans, ................
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