Recent Changes to Retirement Plans
Santa Clara University recognizes the importance of helping our employees meet their retirement goals. We therefore continuously review the components of our retirement program, such as the range of investment options and these options’ performance, value, and fees. As you may recall from our previous communication, there will be some upcoming changes to our retirement program. To help you understand these changes we will be holding town hall meetings with our independent advisers, Blake Thibault and John Clark of Heffernan Retirement Services. The focus of these meetings is to allow you the opportunity to hear about the changes and ask any questions you may have about the investment changes. A list of town hall meetings is provided below.
In addition to the town hall meetings listed below, there will be a meeting in January, after the changes take place.
Additionally, detailed investment mapping for both the Fidelity and TIAA were emailed to employees on October 6, 2016. Not all of the investments are changing so please be aware you may not see any or all of your holdings on these lists.
A summary of the changes and a soft copy of the Retirement Changes Presentation are provided below.
Changes to the SCU Retirement Plan
After careful consideration and thorough analysis, the University, through its Retirement Savings Committee and with input from the Faculty advisors to that committee, has decided to (1) add a self-directed brokerage account option in both the TIAA and Fidelity retirement plan platforms and (2) reduce the core number of investments in both the TIAA and Fidelity retirement plan platforms.
Addition of a Self-Directed Brokerage Account
Both TIAA and Fidelity will be offering employees the ability to enroll in a self-directed brokerage account for employees who choose to actively manage their retirement investment funds. While this option may not be prudent for everyone, this does allow you the flexibility to invest in mutual funds outside of the Santa Clara University core fund offering. For more information visit TIAA or Fidelity.
Reduction in the Core Number of Investments
This core menu reduction will be rolled out in phases with the objective of reducing any overlapping investment options while reducing the overall plan fees. The first phase, beginning this fall, will reduce the number of core funds from 270 to 80. Most of the core funds being removed will continue to be available through the self-directed brokerage account if they are still specifically desired. For more details on which core fund is slated to receive money rolled over from each fund being removed please review the attached mapping. These changes will take place without any action required on your part. If, however, you are not satisfied with a specific change, you will have the opportunity to direct money from any of your funds into any core menu fund you prefer or the self-directed brokerage account.
Fidelity's analysis of the characteristics of the general investment categories.