2013 Retirement Plan Changes

Why is the College changing the retirement fund options?

Swarthmore College manages its retirement plan in accordance with federal regulations. Over time, these regulations change, new interpretations are issued, and employers develop best practices. Years ago, the College established a fiduciary committee to manage the College's responsibilities for the retirement plan and to monitor the investment options offered. This committee includes representatives from human resources and the finance/investment/business offices. It is co-chaired by the vice president of human resources and the vice president for finance. The committee, in consultation with an independent retirement plan adviser, recently completed a comprehensive review of the plan and its investment fund options in light of changing standards and to further promote prudent participant investment decision making.

What principles guided the College in making decisions about the upcoming changes?

Swarthmore College seeks to have a sound process for selecting and monitoring investment options offered to staff, faculty, other participants, and beneficiaries of the retirement plan. The College aims to select financially strong, high-quality investment funds and to monitor and adjust those offerings on a regular basis. The College also wants to assist participants in selecting from a diverse investment fund lineup to help you plan for your retirement.

Fiduciary Investment Advisors, the College's retirement plan consultant, was asked to evaluate the College's current investment fund lineup and make recommendations to the fiduciary committee. The new lineup offers a diversified set of fund options, streamlines the number of options, and reduces redundancy, thus helping facilitate participant investment decision making. The criteria used to select the funds in this new lineup included competitive performance and fees, stable management teams, and sound investment philosophy and processes. The new investment lineup will offer 26 funds as compared with the 110 funds now offered.

What benefit do these changes bring about?

Swarthmore College aims to help you pursue your retirement savings goals. The upcoming changes will offer a full range of high-quality investment funds. The College will continue to partner with TIAA-CREF and the Vanguard Group. On the TIAA-CREF platform, there will be a selection of TIAA-CREF investment options, including an annuity option. On the Vanguard platform, there will be Vanguard and non-Vanguard mutual funds. The Calvert funds will not be offered, because Calvert no longer provides comprehensive retirement investment services to sponsors such as Swarthmore.

When will the changes take place?

New retirement funds became available in October 2013, in conjunction with the College's Open Enrollment period. At that time, during a period of a few weeks, you will be asked to move existing balances and direct new contributions to the new fund options. At the end of that period, some funds, including Calvert funds, will be closed, and no new contributions to them will be possible.

Where can I get more information?

The following documents provide additional information on the changes and timing of the new retirement fund options.

Fund Changes Coming to Your Retirement Plan

Retirement Fund Changes Overview - Presented by Fiduciary Investment Advisors

TIAA-CREF Presentation

Vanguard Presentation

Swarthmore Retirement Plan Changes - Presented by Sue Welsh and Mark Amstutz

What are some recommended steps I should take in preparation for this transition?

Carefully review the information you receive about the new retirement fund options. Also, please plan to attend one or more of the following sessions that will take place on campus this fall:

Investment Planning Seminar
Retirement Planning Seminar
A one-on-one investment counseling session with a TIAA-CREF or Vanguard financial consultant.

Why will the College no longer offer Calvert investments?

As mentioned above, Calvert is no longer providing comprehensive retirement investment services to sponsors such as Swarthmore. While they will no longer be available through our retirement plan, Calvert funds will continue to be offered in the open marketplace.

Will there be a socially responsible investment option on the TIAA-CREF and/or Vanguard platforms?

Yes, CREF Social Choice will remain an option on the TIAA-CREF platform. In addition, Vanguard will provide a new option, the Neuberger Berman Socially Responsible Fund.

Will I be able to move my current assets and direct new contributions to another platform than the one I am invested in today?

Yes, you will be able to transfer your current investment balances and/or direct new contributions to either the TIAA-CREF or Vanguard platforms. Some additional new funds will be available from Templeton, Columbia, and T. Rowe Price, among other fund families.

If you currently participate on the TIAA-CREF or Vanguard platforms, you may remain on those platforms, but your fund options will change.

Communications from Vanguard and TIAA-CREF will provide details on your investments, the new fund choices, and other issues you may wish to consider when the new retirement funds are made available. The Human Resources team will be available to help you through this process. Please consult Fund Changes Coming to Your Retirement Plan [pdf], which further describes the changes and timing of the new retirement fund options.