UNT System is redesigning its Optional Retirement Program (ORP) and 403(b) Tax-Sheltered Annuity Plan (TSA) retirement programs to simplify the investment process, and in most cases, lower fees for current and former participants.
Launching this fall, ORP and TSA retirement plan participants will benefit from:
· Consolidated core fund line up with a simplified menu of investment options
· An easier way to access and understand the investment process
· Lower administrative fees for the majority of participants
When do these changes go live?
o September 2018: The new investment lineup and self-directed brokerage accounts will be available. The existing investment options will continue to be available until January 2019. Unless you elect otherwise, your contributions will continue to be directed to your selected provider and investment option(s) until January 2019.
o January 2019: The investment options no longer available in the new investment lineup will be reallocated and redirected to the new investment lineup at each current vendor. This means both future contributions and balances will be transferred (or “mapped”) to what CAPTRUST, the Plan’s investment advisor, has determined to be comparable funds in the new investment lineup or the appropriate Target Date Fund, based on your age, if there is no comparable fund.
What should I do now?
o Learn more about your investment options at: www.netbenefits.com/unt
o Direct where future contributions will be invested based on the updated investment options
o Review the Investment Transfer Strategy from your vendor
o Schedule a meeting with a vendor representative
o Update your beneficiaries with your vendor
o If you are enrolled in Teacher Retirement System (TRS), you are also welcome to enroll in a TSA plan. This voluntary retirement savings option allows you to control how much money you invest, and in what funds unlike fixed TRS accounts controlled by the State of Texas.
Where can I get more information?
o Contact your specific vendor regarding the fund changes:
Fidelity:800-343-0860, Monday through Friday, 7 a.m. to 11 p.m. (CT)
TIAA: 800-842-2252, weekdays, 7 a.m. to 9 p.m. or Saturdays, 8 a.m. to 5 p.m. (CT)
o Email the UNT System HR Benefits team: HRBenefits@untsystem.edu or contact your campus HR team
**Special note for retirees & former employees and beneficiaries with an account balance in the plan
If you have an account balance in the UNT System ORP or TSA plan, the upcoming changes may affect you even if you are now retired or no longer employed by UNT System. You have the following options for your vested account balance in the UNT System UNT System ORP or TSA plan:
o Leave your retirement savings in the ORP or TSA to take advantage of the new investment lineup;
o Roll any or all of your vested balances into an Individual Retirement Account (IRA) or another eligible employer’s retirement plan
o If eligible, withdraw vested balances using various distribution options such as lump sum, installments or an annuity.
IRS penalties may apply on distributions if you are younger than 59 ½. Distributions are taxed as ordinary income.