MEP Information
▷ On November 29 and November 30, Vice President for Business and Finance Matt Bierman provided a Zoom presentation for IWU stakeholders, to inform them about the opportunity to become a member of an Illinois Multi Employer Plan (MEP) for the retirement program. A recording of one of the sessions can be found here. The slide deck for the program can be found here.
403(b) Multiple Employer Plan
The University is considering collaborating with other Illinois Small Private Universities to create a 403(b) Multiple Employer Plan (MEP). This joint program would create one retirement program for all the Universities and reduce fees for participants. The Illinois Wesleyan University 403(b) Retirement Committee has endorsed this change in model. Included here are a few questions that were raised during or after the campus presentations. We encourage you to view the full presentations for a full understanding of the MEP.
What does MEP stand for? Multiple Employer Program
Who is on the current 403 B Retirement Committee?
The Retirement Committee is composed of the VP for Business and Finance (Matt Bierman), Director of HR (Cindy Lotz), a staff representative (Melanie Smith), a faculty representative (Leigh Moon), and the Associate Provost (Becky Roesner).
Why does the Retirement Committee support this change?
The members of the committee support the MEP because participants stand to retain more of their retirement savings as a result of lower fees. Additionally, joining the MEP will allow participants access to expanded services.
Why does the MEP have to be Illinois specific? How are participants affected if they move to another state?
The MEP needs to be sponsored by a non-profit entity, and generally a state higher education association fills this role. Participants retain the right to stay in the plan even after they leave IWU, as long as they have a plan balance of at least $5,000. Therefore, the impact would be no different than it is today. The participant would work with TIAA to update their contact information and make decisions about how to manage the funds in their portfolio.
What role does TIAA play in our program now and in the future?
TIAA serves as the Record Keeper for our 403(b) Plan, and we have every expectation that they will continue to serve as the Record Keeper to our participants in the MEP.
What are the responsibilities of the Record Keeper?
The record keeper hosts the participant website and call center. They are responsible for participant communication materials and account statements.
I thought that all of my funds were with TIAA. Is that changing?
The IWU 403(b) Committee has always had the responsibility to select the investment line-up (list of investment choices) for participants. In the line-up we have chosen funds that are also managed by TIAA-CREF managers. There are also funds on our list from American Funds, Vanguard, Principal and other investment managers. The choice to choose these investment vehicles is separate from the record keeper role that TIAA officially has with the University.
Will I have funds in two different providers after this change?
No, all funds will continue to be in TIAA contracts, as we expect TIAA to continue to be the sole Record Keeper for the plan.
Will my funds be moved?
Yes, funds you have invested in the TIAA Retirement Choice contracts will be moved into the new investment line-up and invested in a custom target date model determined by your age. You may opt out of the custom target date model and direct your own investments. The MEP investment line-up will include many of the funds currently offered on the IWU investment line-up.
If you have balances in the individual contracts, those balances will not be transferred. Only you can transfer your individual annuity contract balances.
Can a member keep their funds in the same funds they have now?
The MEP will share a single investment line-up. We anticipate relatively few changes. Therefore, many of the investments available to our plan participants today will also be available on the MEP investment menu.
Will the fund line-up change?
The MEP board will set the investment objectives for the program. The Plan Advisor will determine the investment choices based upon the investment objectives. There is no reason to believe that the investment choices will be materially different from the current program. There may be small adjustments based upon fees and estimated returns.
What was meant by individual accounts during the presentation and how are these different from Group funds?
“Individual accounts” encompasses all participant balances held in old individual annuity contracts (RA, GSA, GSRA). Participant balances held in these old contracts can only be transferred by the participant. “Group funds” encompasses all participant balances held in Retirement Choice contracts, and these balances can be transferred by the institution.
Are funds that I have individually contributed to my accounts in addition to what my employer contributed a part of the MEP program? Would they be part of the migration of the new MEP program?
Yes, all funds contributed either individually or by IWU will become part of the MEP program.
If I choose to have my individual accounts remain invested with TIAA, will those funds still be withheld from my pay and sent to TIAA as a normal payroll process?
Any balances that participants currently maintain in TIAA-CREF investments in the old individual contracts will remain in those funds unless moved by the participant. New dollars can only be invested in the Retirement Choice contracts in the investments offered on the active investment menu – this will remain the same in the MEP.
Your funds will be deposited in the same way we currently use.
If there are no contributions being made to my retirement funds, is it possible to leave the funds with TIAA if IWU were to choose another plan option?
All funds invested in the IWU Retirement Choice contracts would be moved, regardless of contribution status. All balances held in the old individual contracts would remain in those contracts unless the participant initiates a fund transfer. TIAA will likely remain the record keeper and thus there would be very little change for participants other than the name of the plan. The plan name would change from IWU 403(b) to MEP 403(b) which would be the umbrella name for all the institutions participating in the MEP plan.