TIAA Plan Updates
This page is designed to keep TIAA participants up-to-date with plan information and investment portfolio changes.
Last Updated: March 2024
About Our TIAA Plans
TIAA is a defined contribution retirement plan sponsored by UNI. This plan is offered to eligible UNI employees. Employees who participate in TIAA are issued individually owned 403(b) retirement accounts. To assist with the plan’s investment portfolio and plan services, the university has two employee committees and a contract with an investment consulting firm (see below for more information). Since TIAA is a defined contribution retirement plan, the employee elects their investments from the managed portfolio and takes on the risk of the performance of the selected fund(s).
About the Retirement Advisory Committee
The university's Retirement Advisory Committee provides feedback to the President and the university's Retirement Investment Committee on non-fiduciary matters related to the university's retirement plans. The committee’s responsibilities are to monitor employee groups and cohorts to ascertain if the university’s retirement plans are allowing plan participants to adequately position themselves as a whole for retirement, monitor the university's retirement plans for equity and balance (such as diversification across and within asset classes, varying degrees of risk and return, etc.), provide feedback regarding investment choices within the university’s retirement plans, provide feedback on education and communication plans to plan participants regarding retirement benefits, and share feedback from plan participants in regard to retirement benefits and communications.
Current Members:
| Leslie K. Wilson | College of Business Administration (Chair) |
| Dan Beenken | Advance Iowa Program Director, CBGI & Regional Business Center |
| Jeffrey Brand | Associate Professor, Communication & Media |
| Shelly Hill | Clerk III, Dining |
| Tammy Hook | Office Coordinator, UNI's School of Music |
| Nate Klostermann | Director, IT-Network & Infrastructure Services |
| Hua-Hsin Tsai | Assistant Professor, Finance |
| Bulent Uyar | UNI Emeritus |
About the Retirement Plan Investment Committee
The primary purpose of the Retirement Plan Investment Committee is to oversee the TIAA investment portfolio and services provided by TIAA. They also have general responsibility and oversight for the administration and compliance of the plans. The Retirement Plan Investment Committee members have been designated as a “named fiduciary” within the meaning of Section 402(a)(2) and 402(c)(3)of the Employee Retirement Security Income Active of 1974 (ERISA). Although the university is not subject to ERISA, the Retirement Plan Investment Committee considers ERISA requirements as a guideline for industry best practices.
Current Members:
| Michael Hager | Senior Vice President for Finance & Operations |
| Michelle Byers | Assistant Vice President & Human Resource Services Director |
| Patrick Pease | Associate Provost for Academic Affairs & Professor |
About CAPTRUST
Shortly after the Retirement Advisory Committee was formed, a request for proposal process (RFP) was conducted to select an impartial investment consultant for the university-sponsored TIAA retirement plan and assist the committees in monitoring the plan’s investment options. From the proposals, several firms were invited to participate in campus interviews. CAPTRUST Financial Advisors was ultimately selected.
Why CAPTRUST was selected:
- CAPTRUST specializes in institutional retirement plans and is one of the largest 403(b) advisors in the country.
- CAPTRUST serves as an advisor to 838 educational institution retirement plans, with client assets of $205.5 billion.
- Over $229.7 billion in 403(b) assets advised upon (938 plans).
- 95% of assets represent institutional clients.
- Over 3,800 defined contribution plans representing over $597 billion under advisement.
- They have a local service team in Des Moines, with support from over 150 professionals in Raleigh, NC. CAPTRUST's Des Moines team was one of nine CAPTRUST teams to be named to Barron’s 2019 Top 50 Institutional Consultants list.
- CAPTRUST is committed to the independence required for complete objectivity. Since their inception, it has been their policy to never accept so much as a golf ball from industry vendors. NO trips, NO meals, and NO "pay to play." Consequently, 100% of CAPTRUST’s revenue is derived from client advisory services.
- As a leading advisory firm, CAPRUST has the leverage to gain significant advantages for their clients, including first-person access to investment managers and a strong position to negotiate better fees and services.
Our charge for CAPTRUST is to negotiate better fees and services with TIAA. Results were shared with both committees.
Our charge for CAPTRUST is to conduct an unbiased analysis of our current investments and bring us a best-in-class lineup of both TIAA and non-TIAA funds. Quarterly results are shared with both committees.
Changes to the University's TIAA Plan
The impact of the Retirement Advisory Committee, Retirement Plan Investment Committee, and CAPTRUST.
Effective October 2019
In early 2019, CAPTRUST conducted a benchmark analysis and compared UNI's administrative fees with similarly sized plans. The benchmark analysis showed that administrative fees of the other plans ranged from 0.105% to 0.12%; whereas, UNI’s was at 0.095%. Therefore, based on the plan demographic information, UNI's TIAA administrative fees were below the current benchmark range.
Although UNI’s administrative fees were below benchmark, CAPTRUST successfully obtained a fee reduction for TIAA participants from 0.095% to 0.065%. The negotiation also ensured that TIAA would continue to provide the same level of service to our participants. The reduction was effective on October 1, 2019.
Effective April 2020
After careful consideration, the Retirement Plan Investment Committee, with the support of the Retirement Advisory Committee, decided to make changes to the investment lineup within the TIAA plans (TIAA will continue to be the university's vendor). These changes provided participants with a variety of mutual funds from TIAA and outside investment managers, and more enhanced investment choices across asset classes. These fund changes impact the university-sponsored retirement 403(b) plan and the TIAA tax-deferred annuity plans. To learn more, read the Summary of April 2020 Investment Fund Changes document (PDF).
Effective November 2021
The university's TIAA participant fee was reduced from .065% to .05%. This reduction did not impact any TIAA services to our participants.
Effective March 18, 2022
TIAA-CREF Lifecycle Index 2065 Fund Institutional Class (TFITX) was added to the lineup.
Effective April 20, 2022
There was a share class change in the following investment fund. This fund moved to a lower-cost share class. Participants with an existing balances in, and future contributions to, the investment option in the left column will be directed to the new share class of the same fund shown below. There is no investment strategy difference between different share classes of the same fund. Investing in a lower-cost share class means that less of your money goes toward fees. As a result, you keep more of the potential return generated by an investment. While returns cannot be guaranteed, paying lower fees may help you reach your retirement goals faster. You can change your investment options at any time.
| PreviousShare Class Option | Future Contributions Map To | New Share Class Option |
|---|---|---|
| Vanguard Total Bond Market Index Fund Admiral Shares (VBTLX) | » | Vanguard Total Bond Market Index Fund Institutional Shares (VBTIX) |
| Table 1 | ||
Effective January 1, 2023
- A three year cliff vesting rule was added for new participants.
- The reduced contribution rate rule for the first $4,800 of earnings in a fiscal year for new participants was removed.
- All non-temporary assignments are eligible.
Effective April 29, 2024
An investment in the lineup was replaced to better align choices to the investment strategies of the plan. Future contributions and existing balances in the previous investment options will be directed to the replacement investment option as noted below.
| Previous Share Class Option | Future Contributions Map To | New Share Class Option |
|---|---|---|
| American Century Emerging Markets Fund R6 Class (AEDMIX) | » | GQG Partners Emerging Markets Equity Fund Institutional Shares (GQGIX) |
| Table 2 | ||
Current Investment Funds
To view the current University of Northern Iowa TIAA investment funds, visit the TIAA investment options web page. Note: Click on the "Show More" button several times to view the entire lineup (menu).
Frequently Asked Questions
- 1Q: What actions am I required to take when there is a change to the TIAA investment lineup?
No actions are required by UNI participants. TIAA will continue to be our 403(b) and TDA vendor.
- 2Q: What actions are recommended for TIAA participants?
- Review your current investments online through your tiaa.org account (see question #4 for instructions) or the TIAA mobile app.
- Look for future communications in the monthly UNI Benefits & Well-being newsletter. This newsletter is sent to your UNI email address the first working day of each month. You can read previous newsletters by accessing the online archive.
- Schedule a free personalized meeting with a TIAA financial consultant using the online scheduler or by calling 800-732-8353 (available weekdays from 7 a.m. – 7 p.m. CST).
- 3Q: When there are fund changes, does it mean TIAA will not be administering the non-TIAA funds? Do I have to log into another vendor’s portal to manage funds?
No, TIAA is our vendor and the administrator of the university’s defined contribution 403(b) retirement plan. When changes are made to the university's TIAA investment lineup (menu), all funds will continue to be administered by TIAA.
- 4Q: How do I create a tiaa.org account?
If you are a first-time user:
- Go to TIAA.org/enrollnow.
- Plan access code - 101800.
- From the Welcome to Enrollment with TIAA page, click Register with TIAA to create your user ID and password.
- Follow the prompts and print out the confirmation page. You are now enrolled.
- 5Q: Do lineup changes impact my TIAA tax-deferred annuity plan(s)?
Yes, the investment lineup changes will impact both the voluntary pre-tax and Roth after-tax annuity plans.
- 6Q: Do changes impact terminated employees and retirees who still have money in their UNI TIAA account?
Yes, the investment lineup changes impact all UNI TIAA participants.
- 7Q: How do I make changes to my investment lineup?
Review and make changes to your asset allocations through your online tiaa.org account or by scheduling a free personalized meeting with a TIAA financial consultant.
- 8Q: What factors does CAPTRUST use to determine their investment lineup recommendations?
CAPTRUST uses a due diligence selection process that includes an evaluation of both quantitative and qualitative factors. When assessing quantitative factors, they review: performance, risk, style purity, consistency of return, and expenses. When assessing qualitative factors, CAPTRUST evaluates a wide range of measures, including managers’ investment processes, corporate culture, compensation models, manager tenure, etc. CAPTRUST believes it is essential to consider both factors, as the qualitative measures have a direct impact on the quantitative outputs.
- 9Q: Why does CAPTRUST recommend less than 30 investment fund options?
CAPTRUST takes the following into account when making their recommendations:
- CAPTRUST believes that every retirement plan is made up of three broad groups of plan participants; Delegators, Emerging Savers, and the Highly Engaged. The level of investment sophistication and corresponding needs of each of these groups vary widely. When consulting with a plan sponsor on the design of their investment menu, CAPTRUST believes it is important to take into account the needs of all three of these groups.
- Delegators prefer simplicity and will typically take advantage of the plan’s asset allocation option (the TIAA Lifecycle funds in the case of UNI).
- The Emerging Saver is starting to engage and is looking for more choice, but still needs help and will often utilize advice solutions.
- The Highly Engaged, often have outside investment advisors or are sophisticated enough to make decisions on their own.
- CAPTRUST also considers the following investment influences:
- REGULATION – Retirement plans are heavily regulated by the state and federal government. They always want to make sure they are complying with regulatory requirements and maximizing regulatory protections where available.
- THEORY – Modern Portfolio Theory (MPT) recommends building a portfolio using investment options that behave differently based on risk, return, and correlation. MPT suggests diversification is maximized by offering the greatest number of distinct investment options possible.
- BEHAVIOR – Behavioral finance professionals have spent a significant amount of time studying the impact of “choice overload”. Choice overload suggests that the more options participants must choose from, the more likely they are to become overwhelmed and move towards inaction.
- ENVIRONMENT – The influence of the external environment suggests acknowledging best practices and industry standards. The environment is also shaped by any service provider constraints and limitations.
When taking the above into account they believe an optimal investment menu will consist of the following:
- At least one (1) asset allocation option (TIAA Lifecycle funds).
- At least four (4) index investments (six Vanguard Index Funds).
- No more than 30 investment fund options to avoid choice overload, but best practice in the retirement plan industry is between 11-20 options.
- CAPTRUST believes that every retirement plan is made up of three broad groups of plan participants; Delegators, Emerging Savers, and the Highly Engaged. The level of investment sophistication and corresponding needs of each of these groups vary widely. When consulting with a plan sponsor on the design of their investment menu, CAPTRUST believes it is important to take into account the needs of all three of these groups.
- 10Q: Who makes the decision to make changes to the UNI TIAA plan?
The Retirement Advisory Committee and Retirement Plan Investment Committee review fund performance and their associated fees, and rigorously analyzes any CAPTRUST proposed investment lineup changes. After careful consideration, the Retirement Plan Investment Committee, with the support of the Retirement Advisory Committee, can decide to make changes to the investment lineup.
- 11Q: Who is my contact to learn how the funds were selected?
Call Human Resource Services at 319-273-2423 and they will put you in touch with one of the CAPTRUST representatives.
- 12Q: How can I see the financial impact of the reduction in administrative fee to my TIAA 403(b) retirement account?
The administrative fee reduction will result in additional revenue going into the revenue credit account. Participants will not see the reduction until UNI reallocates the excess revenue to plan participants at the end of the year.
- 13Q: How do I stay up-to-date with TIAA plan information?
- Access your tiaa.org account to stay up to date with your personal investments, online tools, and webinars.
- For upcoming on-campus sessions, visit the Employee Benefits & Well-being Events calendar.
- Also look for future communications in the monthly UNI Benefits and Well-being newsletter. This newsletter is sent to your UNI email address the first working day of each month.
- 14Q: What questions can UNI Human Resource Services answer?
- Role of the retirement plan committees and CAPTRUST.
- Assistance with creating a tiaa.org account.
Submit your questions about the TIAA changes to hrs-benefits@uni.edu.