msu retirement plan consolidation
The MSU retirement plan consolidation proceeded as planned in 2011, resulting in implementation of a new core investment menu and selection of Fidelity Investments and TIAA as MSU’s approved retirement plan vendors.
For those individuals who made new vendor and/or new investment selections from the core investment menu, your selections are now active.
Note: You can switch your plan vendor (between Fidelity Investments and TIAA) and make different investment selections any time you wish.
Changes Effective January 2012
Here is a general description of the changes that became effective January 1, 2012:
- MSU consolidated retirement plan vendor options from six vendors down to our two most widely used choices — Fidelity Investments® and TIAA.
- A new simplified core investment menu was implemented that provides diversified and well-researched investment choices from multiple investment managers selected by MSU with guidance from Hewitt Ennis Knupp, MSU’s retirement plan consultant.
- For those investors who wish to continue investing outside of the new investment menu options and are comfortable assuming greater risk, there is a self-directed brokerage account option with access to thousands of additional mutual funds from hundreds of available fund families. Additional fees and costs may apply.
These changes apply to all new contributions that occur on or after January 1, 2012. You have the choice to leave your pre-2012 contributions where they are currently invested or transfer those account balances to the new investment options that will be available starting in January.
Reasons for the Consolidation
- To reduce the total investment expenses for most employees (e.g., decrease investment management fees and administrative costs.)
- To provide faculty and staff with a menu of fund choices for better long-term performance.
- To follow best practice advice issued by the Department of Labor and regulations issued by the IRS.
