Announcing Enhancements to the BU Retirement Savings Program
To: Boston University Faculty and Staff
From: Human Resources <hr@bu.edu>
Date: Monday, March 29, 2021 2:01 pm
Subject: Announcing Enhancements to the BU Retirement Savings Program, Effective July 1, 2021
The BU Retirement Savings Program enables you to build a strong foundation for retirement security and represents a significant portion of your total rewards from the University. The University regularly reviews the Program to ensure it performs in your best interest and reflects the best practices in higher education.
Today, we are pleased to announce that as of July 1, 2021, Fidelity, one of our current service providers, will become the sole service provider for the BU Retirement Savings Program. TIAA will no longer be available to all new contributions and incoming transfers as of that date.
The University determined that moving to Fidelity as the Program’s sole service provider offers you a number of advantages:
• Lower and more transparent service provider costs. The current Fidelity annual per participant service provider fee of $56 will be reduced to $46 per year effective April 1, 2021. Participants with an account held under a TIAA-CREF annuity contract pay variable amounts up to $178 per year.
• Best in class service. The University had growing concerns regarding TIAA’s services. In contrast Fidelity provides top-quality service and retirement planning capabilities.
• Simplified Program administration. Moving to one service provider will make operations more effective and the allocation of service provider expenses more equitable for the majority of participants.
In addition, you will have the option to invest in the New York Life Guaranteed Interest Account (GIA) through the investment menu at Fidelity, giving you a new, stable investment, group annuity option to secure a guarantee of principal and accumulated interest.
It’s important to note that your benefits under the Program are not changing.
Impacts and Actions
The impact of this change depends on whether you are currently contributing to a TIAA account:
• If you do not have a TIAA account, no action is required.
• If you currently have an existing TIAA balance or contribute to TIAA, you’ll receive a separate communication outlining any impact to you and the actions you may need to take.
For More Information
We will provide resources to help you learn more about these enhancements:
• Available now:
-Read more about these Program enhancements in the Announcement Brochure.
• Available in April:
-Review the Transition Guide.
-Attend a webinar to learn more about the enhancements and the impact to you.
-Attend a virtual “Ask Fidelity” help desk session for fast answers to your questions.
-Schedule a one-on-one appointment with a Fidelity representative.
Check the Human Resources website in the coming weeks for more information and helpful links to additional resources.
Your financial wellbeing is our priority
Your financial wellbeing—now, and in retirement—remains a top priority for BU. We are confident that the BU Retirement Program enhancements, including the decision to consolidate the service provider with Fidelity, will help you continue to build a strong foundation for retirement security.
As a result of these changes, you may wish to evaluate the appropriateness of your current investment allocations. For your long-term retirement security, you should give careful consideration to the importance of a well-balanced and diversified investment portfolio taking into account all of your assets, income, and investments (both those held in the Program and outside of the Program).
Please contact the Human Resources Service Center at hr@bu.edu or 617-353-2380 if you have any questions.
You may also contact Fidelity at 800-248-4213.