2020 Retirement Plan Changes

Rationale

In 2018, Miami University participated with other Ohio public universities through the Inter-University Council of Ohio in a review of the vendors approved under the Alternative Retirement Plan (ARP) and 403(b) Plan. Miami subsequently engaged Cammack Retirement Group, an independent investment advisor, to work with Miami to reduce the number of approved vendors under the ARP, evaluate and streamline investment options under the ARP and 403(b) plans, reduce some plan and investment expenses, and simplify the investment selection process. These changes will take effect in January 2020, but employees participating in the ARP and/or 403(b) have important decisions to make during the election period (November 4 through December 20).

Participating employees will receive more information about these changes in mid-October and have opportunities to make investment choices prior to the end of the year for the January 1, 2020, effective date.

Existing Account Balances

Participants are not required to move or take any other action with respect to their existing account balances. These balances can remain with the current vendor and in the current investments.  Alternatively, employees may voluntarily choose to transfer some or all of their existing account balance to a new approved vendor. Participants should contact their current vendor or any of the approved vendors for more information on transfers to determine if there are any surrender charges or other fees applicable to a potential transfer.

New Investment Elections

All ARP and 403(b) plan participants will need to select new investments with their vendor for all contributions beginning with the first payroll in January 2020.

Participants can make investment selections under the ARP and/or 403(b) plans during an open election period (November 4 through December 20). During this period, participants will meet with their vendor to provide instructions on how to direct future contributions.

If the participant does not make new investment selections during the election period, beginning with the first payroll in 2020, contributions made to the ARP and/or 403(b) plan will be directed to the default target-date investment option for your vendor. 

During October, Miami will offer numerous group educational events. Beginning in November, on-site individual financial counseling sessions will be available with your vendor by scheduling directly with your vendor’s advisor.

Comparison of the four ARP and 403(b) Plan providers

Retirement Changes FAQ

Please note: the changes detailed in this FAQ pertain to Miami’s ARP and 403(b) plans only and are not associated with OPERS, STRS or Ohio Deferred Comp 457 plans.

How will the changes affect me?

All ARP and 403(b) plan participants will need to select new investments with their vendor for all contributions beginning with the first payroll in January 2020.

Existing Account Balances

You are not required to move or take any other action with respect to your existing account balances. You can leave these balances with your current vendor and in your current investments until you are eligible for and request an ARP and/or 403(b) plan distribution. Alternatively, you may voluntarily choose to transfer some or all of your existing account balance to a new approved vendor. You can contact any of the approved vendors for more information on transfers and/or your current vendor to determine if there are any surrender charges or other fees applicable to a potential transfer.

New Investment Elections

You can make investment selections under the ARP and/or 403(b) plans beginning November 4, 2019. You must contact your vendor with instructions on how to direct your future contributions. If you do not make new investment selections by the first pay period in January, 2020, then beginning with the first payroll in 2020, contributions made on your behalf to the ARP and/or 403(b) plan will be directed to the default target-date investment option for your vendor.

Who are the four vendors?

AXA

Glynnis Reinhart, 513-762-7734, Glynnis.reinhart@axa-advisors.com

Carol Rodgers-Rivir, 859-630-2226, Carol.rodgers@axa-advisors.com

Marc Wagner, 513-762-7725, mwagner@midwestfp.com

TIAA

Laura Maxwell, 513-263-2825, lmaxwell@tiaa.org

AIG Retirement Services (formerly VALIC)

Dean Koller, 614-980-9271 (cell) Dean.Koller@aig.com

William Whiteley, IV, 513-404-9212 (cell) william.whiteley@aig.com

Voya Financial Advisors

Matt Carter, CFP®,513-651-5224, Matthew.carter@voyafa.com

Derek Stiles, 937-353-5472, 800-451-4702 x4025472, derek.stiles@voyafa.com

Jeff Rankin, CFS®, 937-353-5492, 800-451-4702 x4025492, JeffreyRankin@voyafa.com

What do I need to do?

Existing Account Balances

You are not required to move or take any other action with respect to your existing account balances. You can leave these balances with your current vendor and in your current investments until you are eligible for and request an ARP and/or 403(b) plan distribution. Alternatively, you may voluntarily choose to transfer some or all of your existing account balance to a new approved vendor. You can contact any of the approved vendors for more information on transfers and/or your current vendor to determine if there are any surrender charges or other fees applicable to a potential transfer.

New Investment Elections

All ARP and 403(b) plan participants will need to select new investments with their vendor for all contributions beginning with the first payroll in January 2020.

You can make investment selections under the ARP and/or 403(b) plans beginning November 4, 2019. You must contact your vendor with instructions on how to direct your future contributions. If you do not make new investment selections by the first pay period in January, 2020, then beginning with the first payroll in 2020, contributions made on your behalf to the ARP and/or 403(b) plan will be directed to the default target-date investment option for your vendor.

Electing Investments
Action Resources
Review your transition guide and the HR website for retirement information Review the investment information provided in your transition packet. Miami has a dedicated webpage, 2020 Retirement Plan Changes, where you will find frequently asked questions and information.
Attend a retirement education session See the listing of available dates and times on this page.
Select investment options with your vendor AIG: https://www.aig.com/RetirementServices
AXA: https://us.axa.com/home.html
TIAA: https://www.tiaa.org/public/tcm/muohio
VOYA: http://www.myretirementteam.com/
Fund-Mapping Guides
(Choosing your investment options)

Comparison of the four plan providers

If you do not take action - Future contributions to the ARP and/or 403(b) plans will be directed to the default target-date investment option (see below) that is closest to when you will reach age 65.

What are target date funds?
  • Target date funds are diversified investment options designed for retirement plans. Being diversified means they contain a mix of stocks, bonds, and other investments within one fund.
  • Each target date fund has a date in its name—the fund's target date—designed to be the approximate year when you plan to begin taking withdrawals from the Plan (but you are not required to withdraw at that year). For many people, that date is the year they turn age 65.
  • As the target retirement year nears, the mix of investments within in the target date fund gradually becomes more conservative.
  • For example, a younger worker planning to retire around 2060 would choose a target date 2060 fund, while an older worker planning to retire around 2025 would choose a target date 2025 fund.
What steps should I take to make changes?

Beginning November 4, Miami (in coordination with the ARP/403(b) vendors) will provide on-campus locations for you to meet with vendors. You will receive specific instructions in the Transition Kit that you will be receiving in October as to what steps you will need to take.

Set up a 1-on-1 consultation on campus with your chosen vendor in November to discuss your options.

What questions should I ask my vendor representative?
  1. I would like to review my investment options on the new investment platform for contributions after January 1, 2020.
    • Would an age-based Target Date Fund be a good fit for me?
    • If I decide to build my own investment portfolio, which investments would be appropriate for me and what percentage should I allocate to each fund?
  2. I have a balance in the current annuity platform that will be frozen. Can you help me analyze whether I should move it to the new mutual fund investment platform?
    • Can I move a portion of my balance?
    • How do the fees and performance compare for the investments I have now and what I can select on the new mutual fund platform for a similar investment?
    • What is my current crediting rate on my fixed investment and how does it compare to what I will receive on the new investment platform?
    • Will there be any penalties or fees incurred if I move balances from the current annuity investment platform to the mutual fund investment platform?  If so, when will these fees no longer apply, meaning how long do I have to wait to move the funds to avoid a penalty or fee?
  3. Based on my current contributions, asset allocation and my anticipated retirement date, what is my projected balance at retirement?  What types of income options will I have? 
  4. I want to update my beneficiaries; how do I accomplish this?
    • How do I check the beneficiaries that are on file for my retirement plans?
    • When is it important for me to change or update my beneficiaries? 
Will loans be available?

Yes, the ARP and 403(b) plans will continue to permit loans per the plan rules.

Will I pay any fees to invest in the ARP and 403(b)?

All investment options have expenses and other fees. Some investment options may also have redemption and other fees. Check your specific plans to best understand any associated fees.

What happens to my current account balances and future contributions?

You are not required to move or take any other action with respect to your existing account balances. You can leave these balances with your current vendor and in your current investments until you are eligible for and request an ARP and/or 403(b) plan distribution. Alternatively, you may voluntarily choose to transfer some or all of your existing account balance to a new approved vendor. You can contact any of the approved vendors for more information on transfers and/or your current vendor to determine if there are any surrender charges or other fees applicable to a potential transfer.

New Investment Elections

All ARP and 403(b) plan participants will need to select new investments with their vendor for all contributions beginning with the first payroll in January 2020.

You can make investment selections under the ARP and/or 403(b) plans beginning November 4, 2019. You must contact your vendor with instructions on how to direct your future contributions. If you do not make new investment selections by the first pay period in January, 2020, then beginning with the first payroll in 2020, contributions made on your behalf to the ARP and/or 403(b) plan will be directed to the default target-date investment option for your vendor.

Can I move money from an existing account to a new one?

Existing Account Balances

You are not required to move or take any other action with respect to your existing account balances. You can leave these balances with your current vendor and in your current investments until you are eligible for and request an ARP and/or 403(b) plan distribution. Alternatively, you may voluntarily choose to transfer some or all of your existing account balance to a new approved vendor. You can contact any of the approved vendors for more information on transfers and/or your current vendor to determine if there are any surrender charges or other fees applicable to a potential transfer.