- General Frequently Asked Questions
- FAQs for Retirees, Former Employees, and Other Participants
- FAQs for Fidelity Participants
- FAQs for TIAA Participants
- FAQs for VALIC Participants
- FAQs for Vanguard Participants
1. When will the changes take effect and what will happen?
In May 2018, Duke will implement a new investment lineup, as well as provide a self-directed brokerage account through Fidelity. Starting in May, you will be able to select investments in the revamped investment lineup or self-directed brokerage account at Fidelity. The existing funds available through the other providers will continue to be available until January 2019. Unless you elect otherwise, your contributions will continue to be directed to your current selected provider and investment option(s) until January 2019.
In January 2019, Fidelity will become the primary service provider for administration of the Duke Faculty and Staff Retirement Plan (“Duke Retirement Plan”). VALIC and Vanguard will no longer be available as service provider administrators of the Duke Retirement Plan. Further, you will not be able to invest future contributions to the Plan in VALIC’s annuity products. Access to TIAA’s investment options will be limited to the TIAA Traditional Fixed Annuity fund.
If you do not transfer your existing funds and/or redirect your future contributions by December your existing funds will be transferred (or “mapped”) to what CAPTRUST, the Plan’s investment advisor, has determined to be comparable funds in the revamped investment lineup or the appropriate Target Date Fund, based on your age, if there is no comparable fund. Your future contributions will be allocated to a Target Date Fund. To view the mapping strategy, click here.
Review the Decision Guide for additional information about these changes, key dates, and actions to consider.
2. What is a mapping strategy?
A mapping strategy is when existing balances and future fund allocations are transferred (or “mapped”) from one fund to another if the employee does not take action. To learn more, click here.
3. Will there be a blackout period during the transition?
Yes, there will be a blackout period in January. This is to ensure that all information is transferred accurately for your Duke Retirement Plan. During this period, you will be unable to direct or change investments in your individual account, obtain a loan or obtain a new distribution, if eligible, from the Plan. Additional information will be provided closer to the date of the transition of account balances to Fidelity.
4. Will there be any changes to the amount of contributions made by Duke?
No. If you are eligible to receive Duke contributions through the Faculty and Staff Retirement Plan, the Duke contributions remain unchanged. The Duke contribution formula is determined each year and published prior to the beginning of the year. The formula for 2018 is:
- 8.9% of the first $64,000 of salary.
- 13.2% of annual salary in excess of $64,000, up to a statutory salary limit of $275,000.
5. Will there be any changes to the Employees’ Retirement Plan?
No. If you are eligible for the Employees’ Retirement Plan (ERP), it remains unchanged.
6. Will there be any changes to the amount of contributions I can make?
No. You can still defer up to the maximum amount of contributions allowed by Internal Revenue Code on a pre-tax basis, Roth after-tax basis, or a combination of both. Please note the following:
- The 2018 contribution limit is $18,500.
- Any employee age 50 or older is eligible for an additional catch-up contribution of $6,000, which means your contribution can be up to $24,500 per calendar year.
- If you have more than 15 years of service at Duke and have not maximized contributions in the past, you may also be able to contribute an additional $3,000 per year using the “15 years of service catch-up” election.
7. Who do I contact with questions about these changes?
If you have any questions about these changes to your retirement plan, you may call (800) 823-0172 or email email@example.com.
8. Where can I get help?
- Duke's Financial Fitness Week is May 21 – May 24. There will be information sessions about the plan redesign, selecting investments and the self-directed brokerage account.
- Call Fidelity at 800-823-0172 to speak to a Fidelity representative to get help and advice on investing over the phone.
- Set up a one-on-one appointment with a Fidelity representative or call 800-823-0172.
- View the How to Access and Manage your NetBenefits account.
- View the Decision Guide.
9. What types of educational resources are available?
Duke Benefits will provide the following resources to help you prepare and understand the Duke Retirement Plan changes:
- We are committed to making this transition as smooth and seamless as possible. Fidelity representatives will increase their presence on campus to offer help and guidance and provide advice on investing. You can also get help and advice on investing over the phone at 800-343-0860.
- This site will be updated throughout the transition and will provide you with the latest information, key dates, and action steps to take.
- Various emails and printed materials will be sent throughout the year to provide additional details.
Individual consultations with Fidelity, VALIC, Vanguard, or TIAA representatives are available. They can help you answer questions about resources, investment strategy, and specific investments. To schedule an appointment, click here.
10. What will happen to the loan I have at VALIC or TIAA?
A new loan program will be available with Fidelity in 2019. Additional information will be provided later this year. If you have a loan with TIAA or VALIC you should continue to repay your loan as you do now. Loans at TIAA will remain at TIAA. Some loans at VALIC will transition to Fidelity, some will remain at VALIC. Specific information will be provided to you at a later date in 2018.
11. What are the advantages of transferring my balances now vs waiting until January?
If you transfer your balances now, you can decide when you would like the transfer to take place. You can also decide which funds to transfer balances to rather than following the pre-determined mapping strategy. Contact Fidelity to request a plan-to-plan transfer.
12. How can I transfer my balance(s) to Fidelity?
Contact Fidelity at 800-823-0172 for instructions and the necessary paperwork for a plan-to-plan transfer. For a plan-to-plan transfer, you are liquidating funds from one vendor and repurchasing funds at Fidelity. There are no taxes or penalties for this type of transfer.
The value of your account at the time of transfer is based on current market value and is subject to any gains or losses.
13. Do I need a spousal waiver for transferring money from one vendor to Fidelity?
For plan-to-plan transfers you do not need a spousal waiver signed.
14. Will there be taxes or penalties if I move my existing balances from Vanguard, TIAA or VALIC to Fidelity?
No, there will be no taxes or penalties to move existing balances from Vanguard, TIAA or VALIC to Fidelity; however, some funds may have restrictions on the amount that can be transferred to Fidelity. Contact your vendor for additional information.