FAQs on 2017 Retirement Plan Strategy
On January 1, 2017, new “Best in Class” funds will become effective with TIAA and Fidelity.
To review the September employee information session materials, please click on this link:
http://www.usnh.edu/hr/pdf/USNHEEInfoSessionDoc.pdf
1.
What is the retirement plan strategy?
In the fall of 2015 USNH engaged CAPTRUST, an independent consulting firm, to review our 403(b) and 457(b) retirement
plans and make sure that we are providing the best investment options for our employees. This included a review of the
current fund line-up compared to a “Best in Class” model, fiduciary responsibility of the University System of New
Hampshire and plan administration expenses.
2.
Who is CAPTRUST and why were they chosen to work with USNH?
CAPTRUST is an independent consulting firm, not affiliated with TIAA or Fidelity, that offer a number of advisory services to
retirement plan administrators including fiduciary training, regulatory and risk management, benchmarking, investment
strategy and plan design. They have a 28-year operating history, are 100% employee owned and are headquartered in
Raleigh, NC with 25 regional offices nationwide.
3.
What changes are being made to the USNH Retirement Plans?
In January 2017, the number of funds in the USNH retirement plans (both TIAA and Fidelity) will be streamlined. A “best in
class” line up of about 15 funds with each vendor, plus multiple target date funds, over a common spectrum of asset classes
will be offered. These funds represent the best performing, low fee funds as identified by CAPTRUST within TIAA and
Fidelity line-ups and they will be actively monitored for changes in performance. In addition, a self-directed brokerage
account option will be available.
4.
Can I still participate with our existing vendors, TIAA and Fidelity?
Yes. There are no changes being made to our current retirement plan administrators.
5.
Will there be any changes made to the employer match?
No. The current matching principles will continue, as is.
6.
How many funds are available now compared to the “Best in Class” line-up?
Currently, there are a couple hundred fund options available within the USNH retirement plans. Under the new strategy,
the best of these funds will continue with a number of new, low cost/high performing funds that will be added. There will
be about 15 funds included in the line-up, along with a series of target date funds and a brokerage account option for both
TIAA and Fidelity.
7.
What will happen to my current funds?
Some of your current funds may actually be included in the new line-up, but whatever isn’t will be handled through a
mapping process that will transfer your investments to the new “Best in Class” fund in that best matches the same asset
class as your current fund. You will also have the opportunity to make these changes yourself, prior to any automatic
mapping, after the funds become active on January 3, 2017.
8.
What if I want to keep my current funds?
If you want to continue with your current fund line up, you will be able to do so by setting up an individual brokerage
account. You can direct both your own contributions and the USNH matching contributions to the brokerage account,
which will then be directed, through this account, to any of the thousands of mutual funds available through either TIAA or
Fidelity. There will be no fees to open or maintain the brokerage accounts, however transaction fees will vary with each of
the mutual fund choices (and will be fully disclosed before making a selection.)
9.
How are CAPTRUST’s services being paid for?
CAPTRUST charges the University System of New Hampshire a flat annual fee and bills quarterly. These services are paid for
out of plan assets; employee’s fees are not increased to pay for this. In fact, along with other plan improvements, by
utilizing CAPTRUST’s services we were able to reduce overall plan administrative expenses.
10. How is all of this being communicated?
Along with regular updates through the MyUSNH HR Bulletin, there will be many opportunities to learn more and ask
questions about this strategy. Campus HR staff are coordinating forums with CAPTRUST, TIAA and Fidelity representatives in
October. The written transition guides, which include instructions on how to view your current accounts, will be mailed to
participant’s homes in November. In December, TIAA and Fidelity will be available for one-on-one meetings to discuss the
plan changes and mapping (CAPTRUST will not be participating in these meetings with account representatives).