403(b) Upcoming Changes and Transition (Fall 2018)

Kristen Manes  |  9/11/2018 6:13:32 PM

Key Dates You'll Want To Know

Whether or not you are planning retirement in the near future, we encourage you to carefully consider how the following key dates may affect your retirement planning and your overall financial plan. Please contact your current vendor, if you have questions or if you would like to make changes to your account.
KEY DATES*PLAN ACTIVITY
Mid-August through SeptemberOnsite help desks and information sessions at all locations with all vendors. To view a schedule of events click here.
August 30, 2018Investment options will be closed at VALIC. All eligible existing balance(s) and future contributions in the closing funds at VALIC will be transferred to a Vanguard Institutional Target Date Fund.
To facilitate the fund changes at VALIC, transactions will not be available on August 29, 2018 after 3 p.m. (CT). On August 31, 2018 at 12 p.m. (CT), all transactions will be available.
September 1, 2018MetLife and Voya will no longer be available vendors in the LSU Supplemental 403(b) Plan. You can re-enroll at MyRetirementManager.com.
Contributions directed to MetLife or Voya will end with the last payroll in August.
September 4, 2018You can now access the new investment options at TIAA and make changes to your balance(s) and future contributions.
As of 3 p.m. (CT), all eligible existing balance(s) and future contributions in the closing funds at Fidelity will be transferred to a Vanguard Institutional Target Date Fund.
September 5, 2018You can now access the new investment options at Fidelity and make changes to your balance(s) and future contributions.
Week of September 10, 2018All eligible existing balance(s) and future contributions in the restricted funds at TIAA will be transferred to a Vanguard Institutional Target Date Fund.
October 1, 2018Reduced recordkeeping fees and investment management costs are in effect for Fidelity and TIAA. VALIC's changes became effective on July 1, 2018.

*The dates shown are based on the timing and accuracy of a variety of factors, including the transfer of data, receipt of instructions, and receipt of assets. Changes in any of these factors may result in changes to the dates and timing, including the dates on which, and thus the prices at which, assets in your account are sold and/or reinvested.

    Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, RI 02917

    Investments Options

    The new investment option lineup will be available on September 5, 2018. The investment options in your LSU 403(b) Plan gives you a choice of investments that cover the major asset investment classes: stocks, bonds, and short-term investments. The investment options also give you the flexibility to build your own strategy to help meet your needs.

    The investments listed below will become your total offering of available investment options in the LSU 403(b) Plan at each investment vendor. This means these options will be the only available investment options going forward.

    lsu_IO_Table1

    When the market closes (generally 3 p.m. Central time) on September 4, 2018, many investment options currently offered through the LSU 403(b) Plan will no longer be available. As a result, all eligible existing balances and future contributions to investment options that are no longer offered will be mapped to a Vanguard Institutional Target Date Fund. See the Target Date Fund Age Chart for details. Please make sure to carefully review this information and contact your chosen vendor with questions.

    Target Date Fund Age Chart

    Your contributions and eligible existing balances in the closing funds will be mapped to a Vanguard Institutional Target Date Fund. LSU has chosen the Vanguard Institutional Target Date Fund based on your date of birth and the assumption that you will retire at age 65. Simply find your date of birth range in the following chart to determine which Vanguard Institutional Target Date Fund your contributions and eligible existing balances in the closing funds at Fidelity, TIAA and VALIC will be directed.

    Vanguard Institutional Target Date Funds are designed for investors expecting to retire around the year indicated in each fund. The funds gradually become more conservative over time, with a corresponding change in investment risk. They are subject to the volatility of the financial markets, including that of equity and fixed income investments in the U.S. and abroad, and may be subject to risks associated with investing in high-yield, small-cap, commodity-related, and foreign securities. Principal invested is not guaranteed at any time, including at or after the funds’ target dates. For more information on the Vanguard Institutional Target Date Funds, log on to your vendors website.

    lsu_IO_Table2

    Before investing in any mutual fund, consider the investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

      Investing involves risk, including risk of loss.

      Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, RI 02917

      Here are the links to the recordings of the 403(b) Supplemental Retirement Meetings held on 8/22/2018.

      Please cut and paste this link into your Internet Explorer Browser for playback. It will not play in Chrome or Edge.

      10am Session:
      https://streamingweb.agcenter.lsu.edu/Mediasite/Play/5b118566c61447468b2a687dcdb420b21d

      2pm Session
      https://streamingweb.agcenter.lsu.edu/Mediasite/Play/b38e03243603441daf26978fc4e6adeb1d

      Please contact David Stout (dstout.cospace@lsuagcenter.net Multimedia Technical Director) if you have any playback issues.

      Office: 225.578.1184

      What's Changing and Why?

      On September 1, 2018, MetLife and Voya will no longer be available vendors in the LSU Supplemental 403(b) Plan.

      • Contributions directed to MetLife or Voya will end with the last payroll in August.
      • Those with a MetLife or Voya contribution only will need to enroll via MyRetirementManager.com. Through My Retirement Manager, you may elect to enroll with one of the available providers: Fidelity, TIAA and VALIC. Your contributions will be effective with the first payroll following your enrollment. Please note that you can change your contributions to any desired allocations as soon as the new funds are available.
      • If you have balances with MetLife or Voya they will remain unless you initiate an individual transfer to an available vendor(s): Fidelity, TIAA and VALIC.

      A new investment option lineup will be offered at Fidelity, TIAA and VALIC.

      • Many of the current investment options will no longer be available. As a result, all eligible existing balances and future contributions will be transferred to a Vanguard Institutional Target Date Fund.
      • Review the investment options that will be available in the LSU Supplemental 403(b) Plan. The investments chosen provide lower overall investment fees and expenses and will continue to be monitored by the LSU Benefits Administration.
      • Representatives from Fidelity, TIAA and VALIC will be available to help you with these changes. To view a schedule of events visit netbenefits.com/LSU.

      Below are the the new recordkeeping fees and average investment management costs*.

      Fee/Cost TypeTIAAVALICFIDELITY
      Effective Fall 2018 NEW Recordkeeping Cost %0.125%0.38%0.13%
      Effective Fall 2018 NEW Investment Cost %*0.17%0.17%0.17%
      Effective Fall 2018 NEW Total Cost %0.295%0.55%0.30%

      Prior to 9/5/18 Average Recordkeeping & Investment Management Cost 0.93%

      *Unweighted average.

      Why is LSU making these changes?

      The changes will result in lower costs to you, as a participant, which means improved retirement savings in your accounts. In addition, the changes will help in making the selection of your investment choices easier.

      Questions?

      To learn about the plan, enroll on-line, or schedule a one-on-one appointment with a licensed representative. Visit your chosen provider's website.

      Here is what you need to do

      • Review all the Investments available to you.
      • Understand how your current investment options will move to the new investment lineup.
      • If you are not already participating in the LSU 403(b) Supplemental Retirement Plan, now is a good time to enroll.

      Resources

      Heidi Rowland, HR Benefits Manager - 225.578.4631; hrowland@agcenter.lsu.edu

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