Recently, the University of Illinois was able to secure agreements with TIAA-CREF and Fidelity Investments to introduce a new share class of mutual funds for the supplemental 403(b) Retirement Plan. The new share class for existing mutual funds is now available and provides lower expense ratios for all of the TIAA-CREF mutual funds and a set of 42 of the 177 funds offered by Fidelity.
The funds will retain the same investment objective, risks, and fund manager. The only difference is a lower cost expense ratio. The expense ratio is the annual cost to operate the fund, expressed in a percentage of total assets. The lower expense ratios of the new funds means participant fees on fund assets will be reduced before the performance is calculated.
What does this mean for 403(b) participants?
This means more of your money can go to work for you in your supplemental 403(b) account. The changes to the share class apply only to the subset of mutual funds. Investors in the TIAA-CREF annuity funds will not see any changes. Confirmation of the changes to the funds will be reflected in participants' next quarterly statements.
Why might I consider participating in the 403(b) Plan?
With the availability of the lower fee mutual funds, now might be the time to consider participating in the supplemental 403(b) plan. The 403(b) provides an opportunity to accumulate additional retirement funds as a supplement to your State Universities Retirement System (SURS) pension. You may begin participating in the 403(b) plan at any time by enrolling through NESSIE.
More Information
Free one-on-one counseling sessions are available. More information on Investment Company Visits, Counseling, and Seminars is available on NESSIE.
Contact your campus UPB Benefits Services office or one of the investment companies directly with questions or for help enrolling in the 403(b) plan.
UPB Benefits Services
Urbana: 217.333.3111
Chicago: 312.996.6471
Springfield: 217.206.7144
Investment Companies
TIAA-CREF: 800.842.2252
Fidelity: 800.343.0860
