As part of the retirement plan redesign, the current contracts at TIAA will be frozen to new contributions and the TIAA Traditional Account will only accept contributions within the new Retirement Choice (RC) contract effective January 14, 2019. If you are currently investing in the TIAA Traditional under the RA, SRA, GRA and/or GSRA contract(s), you have to re-roll if you wish to contribute to the new Retirement Choice (RC) contract.
You also have the option to redirect your future contributions to any investments from the new investment lineup at Fidelity or re-select the TIAA Traditional Account at any time after the transition.
How do I re-enroll?
Re-enroll in the TIAA Traditional account by completing the special enrollment form by December 27, 2018.
The changes will be effective with your January 18, 2019, paycheck (biweekly payroll) or your January 25, 2019, paycheck (monthly payroll).
If you do not complete and return the form, contributions after January 14, 2019 will be directed to your chosen investments in the new investment lineup at Fidelity. If you do not make investment election in the new investment lineup at Fidelity, your contributions will be invested in the Vanguard Target Date Retirement Fund closest to the year you turn age 65.
Do I need to complete a beneficiary designation form?
Yes. Once the new contract is issued, you will receive an enrollment confirmation from TIAA that will provide additional information about your new account. We encourage you to check your beneficiary election at this time. Please note that if no election is made, your beneficiary will automatically default to “Estate.”
Can I also select investments from the new investment lineup at Fidelity?
Yes. If you would like to select investments from the new investment lineup at Fidelity and the TIAA Traditional Account, you have to complete the special enrollment form by December 27, 2018. To select investments from the new investment lineup at Fidelity, visit fidelity.com/duke.
Please note, you also have the option to redirect your future contributions to any investments from the new investment lineup at Fidelity or re-select the TIAA Traditional Account at any time after the transition.
Key issues to consider
The Retirement Annity (RA), Group Retirement Annuity (GRA) and Group Supplemental Retirement Annuity (GSRA) contracts will be frozen to new contributions as of January 4, 2019. That means, no new contributions can go into these contracts. To accommodate investors in the TIAA Traditional guaranteed annuity account, a new the Retirement Choice (RC) contract will be opened at TIAA with the TIAA Traditional Account as an investment option.
The TIAA Traditional Account under the new Retirement Choice (RC) contract has different interest rate, liquidation and distribution features. This may impact your decision to invest with this account.
- Current crediting rate – As of October 24, 2018, the current crediting rate for new contributions to the TIAA Traditional Account is 4.25%. This rate is higher than the guaranteed rate for the RA, GRA and GSRA contracts. Please visit TIAA.org/duke/investment-performance for additional details on the crediting rates for the TIAA Traditional Account.
- Guaranteed Minimum Rate - Under the new RC contract, the TIAA Traditional Account has a guaranteed minimum interest rate of between 1% and 3%, determined annually. The guaranteed rate in your current RA, GRA and/or GSRA contract(s) is 3%.
- Liquidation features - Please see the attached Frequently Asked Questions document along with the contract comparison chart to better understand the liquidity features of each contract you may hold with TIAA.
- Please note, moving money from any existing RA/GSRA contract to a new RC contract or an investment option on the Fidelity platform is a permanent decision. Money cannot be moved back into the RA, GRA and/or GSRA contract(s).
For additional information about the new Retirement Choice contract, please contact TIAA at 1-800-842-2252.
Would I be able to select the TIAA Traditional after December 27, 2018?
Yes. You may select the TIAA Traditional at any time after January 14, 2019 through Duke@Work.
Where can I get help?
- Contact the Duke HR Benefits Office 919-660-0686 if you need assistance completing the form.
- Contact TIAA at 1-800-842-2252 if you have questions regarding the new TIAA contract
- Call Fidelity at 1-800-823-0172 to speak to a Fidelity representative to get help and advice on investing over the phone.