U-M RETIREMENT SAVINGS PLANS FUND ENHANCEMENTS
This notice is for information only. No action is required.
The U-M Benefits Office is pleased to announce positive changes to the investment funds offered in the U-M Retirement Savings Plan, the SRA (Supplemental Retirement Account), and 457(b) Deferred Compensation Plan. These changes take effect in mid September and result in an increase in investment choices available and a reduction in fund management fees and expenses.
TIAA-CREF and Fidelity are transitioning certain mutual funds to share classes with the lowest fees they offer for these funds for U-M participants. In most cases the fund name will not change and the investment strategy and underlying portfolio holdings will be the same. The principal difference is that the new share class will have lower management fees and expenses. This change will reduce overall plan expenses — thereby keeping more of your money in your accounts, working toward your financial future and your retirement account balances have more earning potential. You won’t need to take any action — the transition will occur automatically at TIAA-CREF and Fidelity.
TIAA-CREF is transitioning all mutual funds to the lower cost Institutional Class. In addition, the current family of Lifecycle Funds will be transitioned to the Lifecycle Index Funds.
There will be no change made to the CREF variable annuity funds; however TIAA-CREF recently announced the reduction in the expense ratio of the annuity funds, resulting in a significant cost savings in expenses paid by participants.
Fidelity is transitioning all 12 Freedom Funds to the Freedom Index Funds: Class W which have lower expense ratios than the current share class of Freedom Funds.
TIAA-CREF will add 14 Vanguard funds to their fund lineup and Fidelity will add 13. The new funds will be available as investment options in the U-M Retirement Savings Plan in September.
In August those who are currently enrolled in any of the retirement savings programs will receive communications from TIAA-CREF and/or Fidelity with details on the changes and the new fund lineup.
More information and answers to frequently asked questions about the investment funds are available on the Benefits Office website at: benefits.umich.edu/plans/retire/newfunds.html
If you have questions about the investment changes, please contact TIAA-CREF and/or Fidelity.
To schedule an appointment with a TIAA-CREF consultant, call 800-732-8353.
To schedule an individual counseling session, call 800-642-7131 or visit http://www.fidelity.com/atwork/reservations