GW Retirement Plan: New Investment Lineup
New Investment Lineup
We are pleased to share enhancements coming to the employee retirement plans at The George Washington University (GW) in January 2025. These enhancements are the result of a review of the plans by the University’s Retirement Plan Investment Committee (RPIC) and CAPTRUST, an independent and nationally recognized investment advisory firm. The RPIC also consulted with faculty and staff stakeholder groups during this review.
The retirement plans will now provide streamlined offerings, introduce a new fee structure with reduced expense ratios, offer a self-directed brokerage option, and provide tiered levels of investment management with comparable investment lineups across recordkeepers and plans. No action is required at this time.
Enhancements to Your Plans
While the basic design of the retirement plans, including contribution rates and eligibility requirements, will remain the same, we’ll introduce the following enhancements for both TIAA and Fidelity participants:
GW is adding a brokerage option to provide access to additional investment choices.
New investment lineups, organized into investment style tiers, will provide you with a range of investment choices and comparable investment menus by recordkeeper across all available plans. If you are investing in a fund option that is being replaced in the updated investment lineup, your balance will automatically transfer to the new investment option.
Plan administration fees will now be separate from the investment management fees and disclosed on your account statements.
Your Transition Experience
On January 3, 2025, the new streamlined investment lineup will be introduced, and some investments will be replaced to better align investment options with the new tiered structure of the plans.
- If you are investing in a fund option which is being replaced by a new fund in the updated investment lineup, Fidelity or TIAA will automatically transfer your balance to the new investment option.
- January 2, 2025, before the market closes at 4 p.m. ET will be the last opportunity to make any investment changes before the automatic transfer of your plan balances to the new fund lineup occurs. These balances will be viewable in your account(s) on January 3, 2025.
Please review the fund transition details below to see how current account balances and future contributions will be transferred/directed to the replacement investment options.
Understanding Tiered Investments
As described below, the investment options in the new lineup will be organized into groups - or tiers - based on individual investment styles. We invite you to review the funds included in each tier by clicking on the tier headers below.
Tier 1:
Allocation Tier
Tier 1 offers target date funds (the Vanguard Target Retirement Funds), which can be a good option if you want to “set it and forget it.” You can simply select a fund based on your birth year; the fund will automatically adjust and rebalance for you based on an expected retirement age of 65.
Tier 2:
Passive Tier
Tier 2 offers lower-cost indexed options that attempt to match the performance of several market indexes (e.g., the S&P 500®). This tier can provide broad diversification within a single type of asset class.
Tier 3:
Active Tier
Tier 3 offers investment options with a manager, who uses financial resources, forecasts, and their own judgment and experience to make investment decisions on which securities to buy, hold, and sell within each portfolio.
Tier 4:
Self-Directed Brokerage
New Tier 4 is meant for investors who want more investment selection. This account gives you additional opportunities to invest in a wide range of mutual funds across several asset classes outside of the core investment lineup. Note: These funds will not be monitored by the GW RPIC.
Key Dates & Timeline
- Now: Review the investment lineups at both TIAA and Fidelity and read the Transition Guide carefully to understand how these enhancements may affect you.
- Before January 2, 2025: Register here to attend an info session on December 9, 2024, or January 6, 2025, to learn more about the enhancements to the retirement plans.
- January 2, 2025, 4:00 p.m. (ET): Last opportunity to make changes before the transfer occurs.
- January 3, 2025: Investment changes take effect. Your future contributions and existing balances will be automatically viewable in the replacement investment options. On January 3, 2025, you can view the new investments at tiaa.org/gwu and netbenefits.com/gw.
Upcoming Events
December 9, 2024 (Info session)
- 11 a.m. – noon ET - Register for the Dec. 9th Info Session
January 6, 2025 (Info session)
- 1 p.m. – 2 p.m. ET - Register for the Jan. 6th Info Session
While no action is required, it’s important to play an active role in planning for your retirement.
- Read the Transition Guide carefully to see how the changes may affect you.
- Access your account to review and/or make any updates to your investment choices and beneficiary designation(s).
Schedule an investment advice session with TIAA or Fidelity.
This service is available at no additional cost and no minimum balance is required.
TIAA
Visit tiaa.org/schedulenow, or call 800-732-8353, weekdays, 8 a.m. to 5 p.m. ET.
Fidelity
Visit fidelity.com/schedule, text meet to 343898, or call (800) 642-7131 on weekdays, 8 a.m. to 5 p.m.
Key Resources and Links
Announcement: Introduces the plan enhancements, transition timeline, and upcoming opportunities to receive and review information.
Transition Guide: Carefully review this guide for details about the plan updates. You'll find information about new features, new investment choices, opportunities for investment advice from TIAA and Fidelity, and more.
New investment lineup: Review the new investment lineup, organized into investment style tiers, providing a range of investment choices and comparable investment menus by recordkeeper across all available plans.
Frequently Asked Questions
- What is changing?
Effective January 2025, the GW retirement plans will provide streamlined offerings, a self-directed brokerage option, and tiered levels of investment management with comparable investment lineups across recordkeepers and plans. In addition, a new fee structure will be introduced. Previously, plan administration fees were bundled with the investment management fees charged to the investment options under the plans. That will no longer be the case. Plan administration fees will now be separate from the investment management fees and will be disclosed on your account statements.
- Why is the change occurring?
GW is committed to providing you with competitive retirement benefits. As part of this commitment, the Retirement Plan Investment Committee (RPIC) and CAPTRUST, an independent and nationally recognized investment advisory firm conducted a comprehensive review of the retirement plans. They examined services, investment lineups, and support offered by the plans’ recordkeepers, TIAA and Fidelity. The RPIC also consulted with faculty and staff stakeholder groups during this review. As a result, the changes shared will be effective in January 2025.
- When will the new investment lineup be available?
The new investment lineup changes will be made effective after the market close on January 2, 2025, and visible to participants via their Fidelity netbenefits.com/GW or TIAA tiaa.org/gwu account on January 3, 2025.
- Do I need to take any action?
No, you do not need to take any action. Effective January 2025, if you are investing in a fund option that will not remain in the new investment lineup, Fidelity or TIAA will automatically transfer your balance to the new investment option. If you would prefer to invest in an alternative fund available under the plans, you can elect an alternative investment option through your Fidelity netbenefits.com/GW or TIAA tiaa.org/gwu account. As a reminder, you can make changes to your investment elections at any time.
- Will there be any change to the plan recordkeepers?
No, your GW retirement accounts will continue to be administered by TIAA and Fidelity. As a reminder, the basic design of the retirement plans, including contribution rates and eligibility requirements will also remain the same.
- Will there be a blackout period?
Participants will be able to make changes to their investment elections or beneficiaries at any time and will not experience a blackout period during the transition.
- How can I review and update my investment elections?
Participants can review and update their GW plan investment elections at any time through their Fidelity netbenefits.com/GW or TIAA tiaa.org/gwu account.
- What is a Self-Directed Brokerage Account?
Self-Directed Brokerage Accounts are intended for investors who would like a wider range of investment options outside of the plans’ approved investment lineup. GW does not monitor investments available through self-directed brokerage and additional fees may apply.
- What is the new fee structure?
In the past, retirement plan-related costs were netted against your investment balances and were based on the total assets in your account. Going forward, the recordkeeping and administrative fees will be assessed separately to each investment option, and the annual plan servicing fee will be shown as a separate item on your quarterly statements. Effective January 2025, provider plan servicing fees will be:
- TIAA: 0.046% ($0.46 per $1,000 invested) in the 401(a) plan and 0.032% ($0.32 per $1,000 invested) in the 403(b) plan;
- Fidelity: 0.055% ($0.55 per $1,000 invested) for both 401(a) and 403(b) plans.
- Is your beneficiary information current?
Did you know the beneficiary designation on your account takes priority over your will? Naming your beneficiaries and putting essential documents in place puts you in control, and can make a difference for the people and causes you care about. Updating your beneficiary information is quick and easy to do—just follow the steps below. If you need help, contact TIAA or Fidelity.
TIAA
Log in to your account at tiaa.org/gwu. Under the Action tab, choose Add/Edit beneficiaries, then follow the on-screen instructions.
Fidelity
Log in to your account at netbenefits.com/GW. Click Accounts & Benefits. Scroll down to Update your beneficiaries, then update where applicable.