Update Retirement Plan Changes

Overview Optional Retirement Plan Opt-Out Changes to 403(b) Tax Deferred Savings and Cash Match Plans

Overview Retirement Plan Options at W&M No changes to Defined Benefit Plans or VRS Hybrid Plan

Decision Making Investment Committee: Committee has been advised by CapTrust, a financial consulting advisory firm

Plan Improvements Decision-making; W&M will manage ORP Consistent plan design and administration of ORP and W&M retirement plans Broader investment choices for ORP Better oversight of 403(b) and Cash Match plans Same investment choices in all plans Lower participant fees Lower administrative fees for the University New online retirement web platform for ORP and 403(b) and Cash Match plans

Timeline for all Plans 1/3/2018 - New investment options available to TIAA customers; Fidelity lineup mostly unchanged 1/9/2018 to 1/15/2018 - Quiet Period 2/1/2018 - Retirement@Work web portal launches 2/1/2018 – Employees hired prior to 1/1/2018 may choose from both TIAA and Fidelity platforms Employees hired after 1/1/2018 may only choose from TIAA platform, but they may invest in Fidelity funds through self-directed brokerage option

OPTIONAL RETIREMENT PLAN

Background - ORP Changes GMU, Virginia Tech, University of Virginia and VCU previously opted out of the VRS optional retirement plan VRS advised the higher education community of planned changes to the ORP in late 2015 Strong faculty opposition to VRS decision VRS reversed course, but W&M elected to continue to pursue opt-out status

Status Opt-out authorized by Board of Visitors at April 2016 meeting Filed opt-out application and received approval from VRS in June 2017 Retained CapTrust to serve as plan fiduciary for ORP, 403(b), and Cash Match Plans Filed plan determination letter with IRS Retained TIAA-CREF as lead record keeper Selected new investment line-up for ORP, 403(b), and Cash Match plans effective 1/1/2018 Communications to employees advising of upcoming changes

Changes to ORP Investment choices Fidelity lineup unchanged, except for change to stable value fund TIAA selected as lead record keeper Maintained TIAA annuities, TIAA Traditional, TIAA Real Estate and CREF Stock 6 funds replaced with better performing funds TIAA target date funds added Added CREF Social Choice and TIAA Growth & Income Four Vanguard index funds added for those seeking low cost investing 10 actively managed funds added Self directed brokerage option

Impact to ORP Accounts TIAA will issue new contracts Investments don’t change, unless you are contributing to a discontinued fund Discontinued funds Balances frozen to new contributions on 1/1/18 Future contributions mapped to replacement fund (See prior slide) Old balances can be transferred at employee’s election

What is Not Changing Employer ORP contributions remain the same and cannot change Employee eligibility cannot change Statutory provisions of Virginia Code continue to apply to ORP

403(b) and Cash Match Plans

Account Impact Existing balances closed to new contributions as of 1/1/2018; balances will not be moved New contributions will be directed to target date fund closest to employee’s retirement age Employees will need to redirect future contributions if they do not wish to stay in target date fund

Timeline Town hall meetings – October 4th and 5th December – welcome packets mailed to employees Jan 1, 2018 – ORP assets transfer Month of January – TIAA/Fidelity employee meetings across campus Feb 1st – new web platform goes live

Retirement@Work Web Portal Sneak Peek Retirement@Work Web Portal

Starting Point for Employee Employee would start from W&M site and click on R@W. They would then register and be taken to the R@W landing page. TIAA CONFIDENTIAL. NOT FOR DISTRIBUTION

Landing Page – Existing Employee To update elections, Employee first clicks this button TIAA CONFIDENTIAL. NOT FOR DISTRIBUTION

TIAA CONFIDENTIAL. NOT FOR DISTRIBUTION Manage Contributions Employee can review current elections, then update by clicking this button TIAA CONFIDENTIAL. NOT FOR DISTRIBUTION

Choose Your Contribution Amount Employee can keep or change the voluntary contribution amount TIAA CONFIDENTIAL. NOT FOR DISTRIBUTION

Choose Your Investment Provider Employee can update the vendors across plans, or…(see next page) TIAA CONFIDENTIAL. NOT FOR DISTRIBUTION

Choose Your Investment Providers Employee can update the vendors by plan and source TIAA CONFIDENTIAL. NOT FOR DISTRIBUTION

TIAA CONFIDENTIAL. NOT FOR DISTRIBUTION Review and Confirm TIAA CONFIDENTIAL. NOT FOR DISTRIBUTION

Questions? jmpoma@wm.edu or askhr@wm.edu