We are pleased to announce important upcoming enhancements to the University 403(b) Plan.
The University of Illinois System is committed to providing a best in class Supplemental 403(b) Plan to help support your financial wellbeing and to help you prepare for your retirement goals. The 403(b) Plan is reviewed annually by an independent investment consultant and enhancements are being made as a result of this in-depth review, as well as in response to faculty and staff feedback. With these Plan changes, many participants will see a reduction in fees, while continuing to have access to a diverse array of investment options across different asset classes.
Watch your mail and email for more details coming from TIAA and Fidelity in early July. Both investment companies will be offering webinars and free counseling sessions.
What is changing and why?
- Streamlined core fund lineup. Investment options will be streamlined into a core lineup of funds with Fidelity and TIAA. The enhanced fund lineup:
- Reduces duplication and overall complexity in fund choice to encourage optimal savings, while still providing access to a diverse array of asset classes.
- Provides funds with lower-cost expense ratios.
- Index funds based on your retirement date. The fund lineup will include a series of lower-cost index Target Date Funds.
- If you prefer not to create and manage your own portfolio, Fidelity Freedom Funds and TIAA Lifecycle Funds provide a “set it and forget it” investment strategy that provides a balanced, age-appropriate portfolio based on your retirement year.
- Reduced fees. Overall plan costs will be reduced, resulting in savings to participants.
What will I need to do?
- You are encouraged to review your 403(b) portfolio and current asset allocation.
- While you’re reviewing your account, ensure you have designated a beneficiary, or update your beneficiary(ies) if necessary.
- Review the new streamlined fund lineup to understand the fund options that will be available in the 403(b) Plan going forward.
- Understand how your current asset allocation may be impacted by fund mapping if you are invested in funds that will no longer be available in the 403(b) Plan. Full details on fund mapping will be provided by Fidelity and TIAA in early July.
- Watch for more information from Fidelity and TIAA, and attend a webinar or schedule a free session with a Fidelity or TIAA counselor.
How might my current asset allocation be impacted?
- If you have assets in funds that will no longer be available in the streamlined lineup, then those assets will be transferred or “mapped” into new funds with similar objectives and risk levels. If no similar fund is available, then your assets will be mapped into an age-appropriate Target Date Fund.
- There will be no blackout dates for this to occur and trades can be made on any business day. Prior to August 9, you may redirect your future contributions or exchange your current assets into any of the investment options that will remain in the lineup. However, new funds being added to the lineup, such as those from Vanguard, will not be available until August 9.
- On August 9, 2021, you can log into your account to review the results of the fund mapping.
- After the mapping process is complete, you are strongly encouraged to review your portfolio to ensure the asset allocation is consistent with your retirement goals. You may make fund changes at any time (up to once per business day).
- No action is required if you do not wish to choose funds different from your mapped funds.
What is not changing?
- Investment options will continue to be offered by both Fidelity and TIAA.
- All features of the Plan, other than the investment lineup, will remain the same, including your login credentials and process for making investment changes.
- The process to make contribution changes via My UI Info also remains the same.
How can I get more information?
Attend an informational webinar.
You may also view 403(b) Plan Enhancements for additional information and FAQs.
Who should I contact with questions?
- Fidelity: 800-343-0860
- TIAA: 800-842-2252
- University Payroll & Benefits:
- Create a service ticket: UPB Service Portal
- Urbana: 217-265-6363
- Chicago: 312-996-7200
- Springfield: 217-206-7144