Upcoming Retirement Plan Changes

It is important to be aware of some changes to the MSU Retirement Plan vendors and fund choices that will become effective January 1, 2012:

  • MSU will consolidate retirement plan vendor options from six vendors down to the two most widely used choices — Fidelity Investments® and TIAA-CREF.
  • StraightLine also will continue to be available for third-party investment advice.
  • A new simplified core investment menu will be implemented that will provide diversified and well-researched investment choices from multiple investment managers selected by Michigan State University with guidance from Hewitt Ennis Knupp, MSU’s retirement plan consultant.
  • For those investors who wish to continue investing outside of the new simplified core investment menu options and are comfortable assuming greater risk, there will be a self-directed brokerage account option that gives investors access to thousands of additional mutual funds from hundreds of available fund families.

These changes will apply to all new contributions that occur on or after January 1, 2012. You will have the choice to leave your existing contributions with your current vendor or to transfer those account balances to the new investment options that will be available starting in January.

As a result of these changes you may want to take some action during the month of November to review and potentially change your retirement plan vendor and fund selections.  A lot more information is available on the Human Resources website, including the new core investment menus that will be available through Fidelity Investments® and TIAA-CREF, information about seminars that will be held on campus throughout the month of November and contact information for vendors.  You can access this information and more at http://www.hr.msu.edu/benefits/retirement/consolidation.htm

And one final note: the University retirement contribution is NOT changing.  MSU will continue to match the eligible employee’s 5% contribution with a 10% University contribution.

This entry was posted in Newsletter. Bookmark the permalink.