The California State University (CSU) is making important changes to the Tax Sheltered Annuity (TSA) Program which will be effective April 1, 2016. These changes are designed to improve efficiencies and savings for participants.

 

The CSU recently submitted a request for proposal to consolidate the CSU TSA Plan from five vendors to one sole vendor. As a result, Fidelity Investments has been named as the sole provider of recordkeeping services. Having a sole vendor will provide:

• Savings for participants (lower administration fees)

• Streamlining of the number of funds available to make investing easier

• A centralized enrollment (eliminating navigating through multiple microsites to complete simple tasks)

• Consistent messaging, communication, and investment guidance

 

It was previously announced that plan participants’ eligible account balances would automatically transfer to the new investment structure with Fidelity. Please be aware that this provision has changed. Plan participants’ eligible account balances will not automatically transfer to the new investment structure with Fidelity; rather, participants will have the option to move existing balances to Fidelity or keep existing balances with the current vendor. Monthly contribution amounts in effect as of February 5, 2016 at 9:59 p.m. will be applied to both the February and March pay periods. Effective April 1, 2016 (March pay period), all monthly contributions will be directed to Fidelity. A dedicated website www.netbenefits.com/calstate is currently available and will be updated as information is obtained. Important dates and additional information about the transition process will be outlined in the Transition Guide that will be mailed to plan participant homes within the next few weeks.

 

As part of the change, a CSU TSA Program Transition Workshop has been scheduled for Thursday, March 10, 2016. Two sessions have been scheduled, with the first being held from 9:00 a.m. to 11:00 a.m. and the second from 2 p.m. to 4 p.m. Both sessions will be located in Goodwin Forum (Nelson Hall East room 102). The presentation will include representatives from Fidelity, Aon Hewitt, Chancellor’s Office Human Resources Management, and Humboldt State University Human Resources. This presentation will help guide you through the upcoming changes effective April 1, 2016. Topics that will be discussed:

• Program Overview

• Why the Retirement Plan is Changing

• New Plan Features

• Key Transition Dates and Plan Changes

• Choosing New Investment Options

• Determining Your Next Steps

 

Although no registration is required for this workshop, we request that participants register via the Training and Professional Development website for planning purposes:

First session - March 10, 2016 9:00 am - 11:00 am

Second session - March 10, 2016 2:00 pm - 4:00 pm

 

Please contact Human Resources & Academic Personnel Services at (707) 826-3626 with further questions.