Retirement Plan Changes and Enhancements

IU is taking steps to enhance the Indiana University retirement plans for participants. In the fall of 2018, Indiana University initiated a comprehensive review of the IU retirement plans to ensure that they continue to meet industry best standards in a changing environment. The review was conducted by the university’s Retirement Investment Committee, which is comprised of administrative staff and faculty representatives who are tasked with the responsibility of overseeing the IU retirement plans for the exclusive benefit of participants. As part of this review, the committee issued a formal request for proposal (RFP) to evaluate administrative recordkeeping services for the plans.

We are pleased to announce that after a competitive procurement process and an exhaustive review and evaluation of the responses, Fidelity Investments has been selected as the university's sole retirement plan provider beginning in 2020, and a number of other enhancements to the plans has been approved.

What are the changes and enhancements?

  • Fidelity will be the sole provider of record-keeping services for the IU retirement plans
  • Fees under the IU retirement plans will be more transparent
  • A new streamlined investment menu will be offered
  • Mutual fund balances at Fidelity and/or TIAA will transfer to the new investment menu
  • Rollovers from other plans and/or IRAs will be permitted into the TDA and 457(b) Plans
  • Roth contributions will be permitted to the TDA and 457(b) Plans

 

Next Steps

  • Review the new investment menu and choose your investments. In November, Fidelity will host an “Early Choice Election Window” where you will have an opportunity to select the investments for your future payroll contributions and the transfer of your existing mutual fund balances at Fidelity and/or TIAA. Your selections will go into effect in January after the transition to Fidelity is complete. If you do not make an election in November, your future payroll contributions and any mutual fund account balances transferring to Fidelity will move to an age-based Vanguard target date fund. More information will be coming soon!
  • Meet with a Fidelity representative for individual financial consultations and assistance. Do you have questions about your investments or what the enhancements mean? Meet with a Fidelity representative. To schedule a one-on-one consultation at no additional cost to you, go to www.netbenefits.com/Indiana, call the Fidelity reservation line at 800-642-7131, or text “MeetAtIU” to 343-898*. Meetings will be available on every campus throughout the fall semester.
  • If you are currently investing through TIAA, you will need to update your beneficiaries with Fidelity once the transition is complete. If you have an IU retirement plan account that is currently being administered by TIAA, your beneficiary data will not transfer to Fidelity. In January 2020, you will be reminded to update your beneficiary information when you are able to access your account at Fidelity on the NetBenefits website.
  • If you are interested in transferring your TIAA annuities to Fidelity, please call Fidelity at 800-343-0860 for assistance with the process or for more information. Please consider the following:
     
    • You do not have to move your TIAA annuities. You may leave them at TIAA if you so choose.
    • This process can be done at any time and does not need to be completed during the Early Choice Window.
    • There is paperwork required for this transaction.  After the form is completed and received in good order, TIAA will liquidate your annuity or annuities and mail a check to Fidelity.
    • You may be able to move your TIAA annuities to a mutual fund option to have it come to Fidelity in January.  To do so, please contact TIAA at 800-842-2252 before the blackout period begins on December 23, 2019.
    • If you are no longer employed by IU, there may be additional actions you can take.  Please weigh your options carefully, and call Fidelity at 800-343-0860 for more information.

*Message and data rates may apply. Get details at http://pages.fidelityinvestments.com/smsee.

 

Want more information?

 

 

The university is committed to providing you with the information and assistance you need to understand and take full advantage of these enhancements. As part of the redesign of IU’s retirement plans, Fidelity will have representatives at each IU campus who can meet with faculty and staff to assist with the transition at no additional cost to you. Information will also be available during Open Enrollment presentations at each IU campus.

 

Helpful Links

Key Actions

 

 

No longer at IU?

If you are a retiree, former employee, or a beneficiary and have an account balance in an IU retirement plan, the upcoming enhancements may affect you even if you are now retired or no longer employed by IU. Click here for additional information.