Earlier this spring it was communicated that the UNC System was exploring the option of moving from our current two retirement plan recordkeepers, TIAA and Fidelity, to a single recordkeeper for all of the UNC defined contribution retirement plans.
With the assistance of our plan’s investment advisory firm, CAPTRUST, the RFP process was completed at the end of August and the contract to manage all participant retirement plan assets has been awarded to TIAA. This will impact the following UNC Retirement Plans:
- UNC Optional Retirement Program (ORP)
- UNC 403(b) Plan
- UNC 457(b) Plan
- UNC Senior Administrative Officer Retirement Program
- UNC Senior Athletic Employee Retirement Program
As of June 30, 2023, the University had over $11.8 billion in five defined contribution retirement plans. We have leveraged our position to get lower recordkeeping expenses. Under our new contract, once the consolidation is complete, UNC will have saved participants over $500,000 a year in recordkeeping expenses.
Having our assets with a single recordkeeper will also allow participants to take advantage of:
- Lower cost investments that include mutual funds and collective investment trusts
- Plan pricing structure that further optimizes investment returns for participants
- Contribution planning and investment selection advice Enhanced participant engagement on issues related to financial planning
- Customized retirement income solutions
- Consistent messaging about how the various plans work
What’s Next?
Beginning on September 1, 2023, all newly hired employees that choose to participate in any UNC Retirement Plan must enroll with TIAA.
Beginning January 1, 2024, any employee that currently has ORP employer and employee contributions split between TIAA and Fidelity will see their Fidelity contributions re-directed to TIAA. If you also split contributions in the UNC 403(b) and/or UNC 457(b) between both vendors, the Fidelity contributions will be re-directed to TIAA. While no action is necessary by you, we do encourage you to check your investment allocation with TIAA prior to January 1, 2024, to ensure that contributions are allocated based on the investments you selected at TIAA.
Plans are currently underway with TIAA to make this transition as seamless as possible. In the coming months, you will receive more information about these changes, which will include a detailed transition guide about the fund mapping process, key dates, and the decision-support resources available to you. You can review the current fund line-up offered through TIAA at TIAA.org/unc.
We encourage you to take advantage of the guidance and tools available to you to help maximize your savings and plan for a successful retirement.