Changes to Union College Retirement Plan AGENDA: Retirement Plan Committee Presentation (25 minutes) TIAA-CREF Presentation (25 minutes) Fidelity Investments Presentation (25 minutes) Wrap Up and Reminder about Help Desks * Each presentation will be followed by a minute Q&A session

Changes to Union College Retirement Plan Why the change? Answer: New 403(b) regulations How has Union responded to these regulations? What principles guided the changes? Description of the new plan Description of the transition to the new plan 2

Why the change? Answer: New 403(b) regulations New regulations place a “fiduciary” obligation on plan sponsors Plan sponsor must have a process for regularly reviewing all aspects of the plan including investments, fees and service providers Greatly heightened audit risk Key words: ‘prudent’ and ‘fees’ 3

Union’s response to the new regulations Formed a Retirement Plan Committee Hired a third party consultant to help Union fulfill the new obligations Conducted a RFP to several providers who specialize in the non- profit/higher education sectors Evaluated current and alternative providers and investment options Conducted two focus group meetings with participants 4

Principles guiding the committee Minimize disruption to participants Offer exposure to key asset classes Minimize cost Minimize the frequency of changes in the menu of investment options Provide reliable record-keeping, customer service and participant education 5

Description of the new plan TIAA-CREF and Fidelity remain record-keepers Key asset classes available from both TIAA-CREF and Fidelity Investment options largely limited to low-cost index funds The number of options reduced from 170 to 31 Self-directed brokerage account available 6

Asset Class CategoryTIAA-CREFFidelity Stable Value TIAA Traditional Money Market CREF Money Market (annuity)Fidelity Money Market Short-Term Bond Vanguard Short-Term Bond Index SignalFidelity Spartan Short-Term Treasury Bond Index Adv Intermediate-Term Bond TIAA-CREF Bond Index Ret Fidelity Spartan Intermediate Treasury Bond Index Adv Fidelity Spartan US Bond Index Adv Long-Term Bond Vanguard Long-Term Bond Index InvestorFidelity Spartan Long-Term Treasury Bond Index Adv Inflation-Linked Bond CREF Inflation-Linked BondFidelity Inflation Protected Bond Moderate Allocation CREF Social Choice (annuity) Large Cap Growth CREF Growth (annuity) Large Cap Blend TIAA-CREF Equity Index Ret CREF Stock (annuity) Fidelity Spartan Total Market Index Adv Large Cap Value TIAA-CREF Large-Cap Value Index Ret Mid Cap Blend Vanguard Mid Cap Index SignalFidelity Spartan Extended Market Index Adv Small Cap Blend TIAA-CREF Small-Cap Blend Index RetFidelity Spartan Small Cap Index Adv Foreign Large Blend TIAA-CREF International Equity Index RetFidelity Spartan International Index Adv Emerging Markets TIAA-CREF Emerging Markets Equity Index RetFidelity Spartan Emerging Markets Index Adv Real Estate Vanguard REIT Index Signal TIAA Real Estate (annuity) Fidelity Spartan Real Estate Index Adv Lifecycle TIAA-CREF Lifecycle Index Funds PremierFidelity Freedom Index Funds The new investment menu of Union College Retirement Plan

Comparison of fees in the new and old plans 8 Old PlanNew Plan TIAA-CREF ($187 mil. in assets) 0.62%0.41% Fidelity* ($20 mil. in assets) 0.79%0.17% Average expense ratios of investment options in the new and old plans *Under the old arrangements $12 annual fee was applied to each participant account. Under the new arrangement this fee is covered by Fidelity’s revenue from the record-keeping portion of the expense ratio of Fidelity funds. As long as this revenue is at least $136 per participant (it is currently over $200), no per participant fee will be applied.

The transition to the new plan After March 1 st contributions can only be directed to investment options included in the new investment menu Existing balances in all Fidelity funds and TIAA-CREF annuities that are not included in the new menu will remain in participant accounts Existing balances in TIAA-CREF mutual funds that are not included in the new menu will be transferred to appropriate alternatives in the new menu 9

Example of the personalized transition information 10 Current Investment Options of Joe Smith Money Type MovedNew Investment Options TIAA-CREF Social Choice Equity Existing balances will be moved to, and future contributions will be redirected to  CREF Social Choice CREF Global Equities*Future contributions will be redirected to  TIAA-CREF International Equity Index Fidelity Contrafund*Future contributions will be redirected to  Fidelity Spartan Total Market Index Fidelity Freedom 2040*Future contributions will be redirected to  Fidelity Freedom 2040 Index TIAA TraditionalNoneNo Change; investment exists in new line-up CREF StockNoneNo Change; investment exists in new line-up WHAT CHANGES WILL OCCUR TO MY ACCOUNT IF I TAKE NO ACTION BEFORE MARCH 1 ? *The existing balances in these investments can only be moved by your direction.

Self-directed brokerage account access to any mutual fund greatly minimizes disruption to current Fidelity participants no set-up or maintenance fees no transaction fees for 5,000 mutual funds (brokerage and possibly load charges for other mutual funds) employees will sign a waiver before opening an account potential liability is uncertain (has not yet been contested in courts) our committee will monitor the provider but not the investments limited utilization is expected 11

QUESTIONS? 12