Here's what you need to know:
- Why are we making this change?
We will enjoy enhanced service levels, greater administrative efficiency, and pay lower fees with the sole vendor relationship.
- Do I need to do anything now?
No, we will have a complete communication and implementation plan with multiple education sessions and advisors on campus. More information will be shared in September/October.
- What if I already have TIAA?
If an employee already has TIAA the only change may be a difference in available investment options. More information will be shared in September/October.
- What if I have Fidelity?
If an employee is currently with Fidelity, they will be migrating to TIAA. More information will be shared in September/October.
- What about my loans with Fidelity?
All outstanding loans will be moved to TIAA.
- What about online access?
We will still have an online platform and it will offer a single sign-on for our employees.
- What about my beneficiary information?
Beneficiary information will migrate from Fidelity to TIAA. However, we are currently missing beneficiary information for over 500 employees. We strongly encourage all employees to verify they have beneficiary information of file for the retirement accounts.
- What will happen with investment options?
The committee has not formally authorized the new fund option of investments, but this process should be completed by early August. We are reviewing all of the current TIAA fund options and anticipate additional funds being added. All employees will be able to make changes. If an employee with Fidelity takes no action, their investments will be mapped over to the TIAA platform and allocated to similarly performing funds.
- Will there be plan design changes?
We do not expect plan design changes at this time. Gonzaga will continue to make its 8.5% employer contributions to eligible employees, and employees will still contribute 5% to the plan. Employees may still contribute voluntarily to their retirement account on a pre-tax or post-tax basis.
- Where can I go to find more information on this transition?
We will have updated information posted on the main Gonzaga website under retirement benefits and on the Benefits in myGU area. There will also be a resources guide printed and mailed to all eligible employees and retirees in early September.
- Does this only impact active employees?
No, all past or retired employees that still have their investments in the Gonzaga plan will be impacted. These participants should be referred to TIAA directly at (800) 842-2252 or they can visit the TIAA Gonzaga website for more information.
For additional questions, please contact Gonzaga's Assistant Director of Benefits, Wellness, and Safety, Lisa Schwartzenburg at email@example.com or x5861.
Retirement Plan Policy Statement
Retirement Plan Objectives
Gonzaga University wants each employee to have income to supplement Social Security benefits at retirement. Gonzaga's formal 403(b) retirement plan allows participants to:
- accumulate a substantial portion of retirement benefits for long term service with the University
- accumulate retirement benefits which can be added to benefits from other employers for those who have served the University for a shorter time.
Beginning the first day of the month following one (1) year of service, all employees working a minimum of 1,000 hours per year enroll in the University's defined contribution plan. Participants contribute 5% of their salary and the University contributes 8.5%.
Participants may voluntarily contribute during the first year of employment, or make additional voluntary contributions beyond the required 5%. The University does not match voluntary contributions. Voluntary contributions are subject to IRS limitations.
All contributions to the 403(b) plan are tax deferred, and reduces employees' gross taxable income by the contribution amount.
Gonzaga's policy is to use the investment vehicles that provide a reasonable return to all participants. Many investment options are available. However, given the nature of retirement funds, the University selects only those investment options deemed prudent. To minimize risk, the University uses major financial service organizations with high industry ratings, substantial size, and experience.
Individuals have varying financial needs and investment goals depending on their age, length of service, personal financial status, and risk tolerance. To accommodate these variances, the retirement plan allows participants to select fixed income and/or common stock options.
While the University cannot advise individuals on investment selections, the plans will enable participants to make changes in their investment options during the course of their careers.
University administrators, including but not limited to the Vice President for Administration and Planning, the Vice President of Finance, the Assistant Vice President of Human Resources, Corporate Counsel and the Assistant Director of Benefits, Wellness, and Safety, will meet annually to review the program in light of current economic conditions, benefit plan trends, and investment performance. University personnel are represented on the Retirement committee by the chairperson of the Faculty Benefits Committee and a representative from the Staff Assembly.
Summary Annual Report 2021