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retirement plans by rickman1

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									Date:   November 11, 2008

To:     All Faculty, Staff and Administrators

From: Sheri J. Tonn, Vice President for Finance and Operations

RE:     PLU Retirement Plans

The Pacific Lutheran University retirement plan will change January 1, 2009 as a result of new federally
mandated regulations.

Due to these new regulations, we will no longer offer Thrivent or Fidelity as providers of retirement
investments. All PLU retirement plans will be administered by TIAA-CREF beginning January 1, 2009.
There will also be some changes in the investment options available from TIAA-CREF and new
retirement plan contracts will be issued to everyone.

NO IMMEDIATE ACTION ON YOUR PART IS REQUIRED. HOWEVER YOU MAY WISH TO ATTEND
INFORMATIONAL SESSIONS AS THEY ARE SCHEDULED. There will be two initial campus meetings this
Friday, November 14, one from 9:15 a.m. to 10:15 a.m. and repeating at 12:30 p.m. to 1:30 p.m., both in
UC 133. Providing additional information at these meetings will be the consultant who has been working
with us through this process, a representative of TIAA-CREF and me. You’ll be receiving more details
soon, along with a schedule of group and individual counseling sessions.

Thrivent decided to discontinue offering a PLU retirement plan because 403(b) plans like ours are not a
large portion of their business. Given the scope of their 403(b) business and given the cost of coping
with federal regulations, the home office came to the conclusion that it was not cost effective to
continue with retirement plans like ours. We were disappointed that it turned out this way but
understand the business decision that was made.

The PLU Ad Hoc Retirement Committee conducted an exhaustive review of bids submitted by both TIAA-
CREF and Fidelity. The committee concluded that Fidelity’s bid was not as competitive for a variety of
reasons including less investment flexibility, fewer on-campus services, and higher expenses. After
careful consideration, the decision was made to go with one vendor, TIAA-CREF.

Overall we believe that the changes that are coming to the retirement plan will benefit both you and the
university through:
     lower fees for participants;
     increased services through educational seminars, increased on campus visits, and built in
        penalties paid to PLU if TIAA-CREF is in non-compliance;
     a thoughtfully constructed menu of investment choices including TIAA-CREF and non-TIAA-CREF
        funds that cover all the major asset classes;
     the financial strength and stability of TIAA-CREF. In fact, TIAA is one of only a few insurance
        companies to have the highest possible ratings from all four of the major ratings agencies;
     consolidated reports that will streamline administration and result in savings to the university.
WHEN THE MOVE IS MADE TO THE NEW TIAA-CREF PLAN, THERE WILL BE NO CHANGES TO THE
CURRENT BASE CONTRIBUTIONOF 7.5 PERCENT FROM PLU OR THE CURRENT MATCHING SCHEDULE. In
other words, there is no change to the current contribution structure in place today.

The approximately 200 current participants with Thrivent and Fidelity will be joining those already with
TIAA-CREF. Everyone will be receiving new contracts with TIAA-CREF—those new to TIAA-CREF as well as
those currently with them.

Some aspects of this transition are still being finalized. If you have questions in the meantime, please
contact Teri Phillips, ext. 7187 or phillitp@plu.edu.

								
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