At the University of Pennsylvania, we’re committed to offering a retirement savings program that helps you plan for—and build—long-term financial security. The University of Pennsylvania Tax-Deferred Retirement Plan Investment Committee (TDR Committee), working with an independent advisor, recently conducted a retirement program review to evaluate plan efficiencies and service enhancements.

As a result of this review, the University of Pennsylvania will be making changes to the administration of the University of Pennsylvania Basic, Matching, and Supplemental Retirement Annuity Plans (the Plans). The effective date of these changes will be in April of 2021. Although TIAA will be the single record keeper, participants will still be able to select Vanguard investment funds, as well as TIAA annuities and a new Blackrock fund. The changes will benefit participants by:

• Consolidating plan services to a single recordkeeper, leading to lower administration fees for Plan participants
• Increasing access to investment education and retirement planning advice
• Providing consolidated retirement information and investment advice services, and a single statement for participants who have investments from more than one company (brokerage accounts will still have a separate statement)
• Providing a streamlined investment menu that may make it easier to construct a diversified portfolio aligned with your retirement goals

A Single Record Keeper

The University will make these enhancements by streamlining administration of the Plans with one recordkeeper. A recordkeeper is the service provider for the retirement plans and is responsible for maintaining participant accounts, processing investment transactions, and providing participants with account-related information, such as statements and online access. Regardless of the investments you own, your retirement account is considered to be “held” at your recordkeeper. Recordkeepers also provide other services to participants—including education and advice about investment elections and planning for retirement.

The TDR Committee chose TIAA to serve as the Plans’ sole recordkeeper. By having a single recordkeeper, the University will be able to reduce overall plan management costs, simplify administration, and improve the participant experience. As the single recordkeeper, TIAA can host a variety of mutual funds from different fund families.

For participants currently using Vanguard as the recordkeeper, new accounts will automatically be created at TIAA. The new investment menu—including Vanguard funds and TIAA annuities—will be available through your new account on the TIAA platform.

Your New Options

Beginning February 16, 2021 all Penn participants can select investment options for all future Plan contributions beginning in April. Participants can also select options for how their current mutual fund balances at TIAA and Vanguard will be invested after the change to single recordkeeper.

The new investment lineup (including a self-directed brokerage option) will be available for investment selection in April.

If you do not select investment choices from the new menu before March 31, 2021, your current mutual fund balances and future contributions will be directed to an age-based Vanguard Institutional Target Retirement Fund.

What Is Not Changing?

• The University’s employer contribution levels
• Eligibility and vesting requirements
• Contribution types (pretax and Roth)
• Voluntary contribution levels
• Loan, withdrawal, and distribution availability
• The University’s commitment to help you plan and save for retirement

Actions You Can Take

Mark your calendar with these key dates listed above and the Transition Guide timeline and make a plan. You should receive a copy of the transition guide at your home address soon.
Review the inside front cover of Transition Guide checklist of things to do and actions to consider to make the most of the upcoming Plan changes.

Attend an Upcoming Plan Changes webinar. Live webinars have available since January 22. At each webinar, a TIAA financial consultant will provide more details about the changes as well as actions you can take. Visit www.hr.upenn.edu/PennRetPlan to register. Virtual drop-in office hours will be offered every Monday, 1 p.m. to 4 p.m. (ET), and every Friday, 9 a.m. to 12 p.m. (ET), January 15, 2021, through February 12, 2021. Review the complete schedule of events at www.hr.upenn.edu/PennRetPlan.

Get retirement advice. Meet one-on-one during a virtual session with a TIAA financial consultant to build a personal plan for your future. Schedule an investment advice session online by visiting TIAA.org/schedulenow-upenn, or by calling 800-732-8353, weekdays, 8 a.m. to 8 p.m. (ET).

Choose investment options from the new menu. Once your new account is issued on February 16, 2021, you will be able to change the way future contributions are directed.

Beneficiaries

Name a beneficiary for your new account. Your existing beneficiary designations will not be transferred. Make sure this important information is up-to-date in your new account.

What Happens If You Do Nothing?

All existing mutual fund balances and all future contributions to the Plans will transfer to the new accounts and will be directed to the Vanguard Institutional Target Retirement Fund that most closely corresponds to the year you turn 65. Please see page 12 of the Transition Guide for the specific Target Retirement Fund that applies to you. Annuity balances will remain in existing legacy contracts. Your existing beneficiary designations will not be transferred and your beneficiary will be set to the Plan default.

If you have any questions or need assistance, please contact the University of Pennsylvania Retirement Call Center at 877-736-6738, weekdays, 8 a.m. to 5 p.m. (ET). You can also Schedule an investment advice session online at TIAA.org/schedulenow-upenn or by phone at 800-732-8353, weekdays, 8 a.m. to 8 p.m. (ET).

—Division of Human Resources