CSU TSA 403(b) Program News
CSU TSA 403(b) Legacy Fund Balance Mapping
In an effort to reduce participant costs and improve the design and operation of the
California State University Tax Sheltered Annuity (TSA) program, CSU will be implementing
a transfer of asset balances currently held by the TSA legacy record keepers (Fidelity,
MetLife, TIAA, VALIC, and Voya) to the active TSA Program administered by Fidelity. Balances
held in legacy annuity contracts will not be affected by this transition. This is scheduled to take place at the end of May 2018.
What Took Place in 2016?
In April 2016, CSU introduced a number of enhancements to the TSA program following a rigorous due-diligence process. These modifications included the selection of Fidelity Investments (Fidelity) as the Program’s sole record keeper and the establishment of a new streamlined investment line-up.
At that time, CSU decided that participant balances for both active and separated employees held by the Program’s five legacy administrative record keepers (Fidelity, MetLife, TIAA, VALIC, and Voya) would not be transferred.
What's Changing Now?
End of May 2018, your legacy mutual fund balances held by the program’s five legacy record keepers (Fidelity, MetLife, TIAA, VALIC, and Voya) will be transferred to the active Fidelity TSA plan.
An “Early Choice” window for participants to choose investments for the transferring
balances will be available in mid-April 2018. In the absence of an affirmative investment
election by participants, assets will be automatically directed to the Vanguard Target
Retirement Investment option at Fidelity, based on the date closest to when the participant
will turn age 65.
What's Not Changing?
Balances held in legacy annuity contracts will not be affected by this transition. Contact your current record keeper for assistance in determining if you have balances
in annuity contracts. To move your legacy annuity balances, please schedule a meeting
with a Fidelity campus representative or contact Fidelity directly at 800-343-0860.
What actions do you need to take?
Transition Guide - Please carefully review the transition guide. It has all the information you will need on key dates, times, and action steps.
- The transition guide also has a table detailing the investment options that will be mapped to Fidelity.
- Beginning on April 23, 2018, an “Early Choice” window will be made available for those participants who want to choose how their legacy mutual fund account balances will transition to the active investment lineup at Fidelity.
- If you do not make an investment election during the “Early Choice” window, your current investments will be liquidated and transferred to the Vanguard Target Retirement Date Fund that most closely aligns with the year you will reach age 65. Target Date Funds are an asset mix of stocks, bonds, and other investments that automatically becomes more conservative as the fund approaches its target retirement date and beyond. Principal invested is not guaranteed.
Systematic Transactions- If you have established one of the systematic transactions (Minimum Distribution
Option, Transfer Payout Annuity, Automatic Rebalancing, Systematic Withdrawal, and/or
Transfer and Interest Only), please contact your legacy record keeper to provide updated
transfer or distribution instructions based upon the options available to you by May
What to Expect?
- Cost Efficiencies - Active contributing participants might have already noticed that the cost structure of the existing program is significantly lower than legacy record keepers.
- Ease of Monitoring - You may no longer need to access multiple record keepers. Fidelity’s NetBenefits® will serve as the Program’s centralized website.
- Improved Education and Communication - Fidelity will be better positioned to answer all of your questions regarding the Program. In addition, you will receive announcements and targeted communications from only one record keeper.
- Improved Administration - Requests will be processed by a single record keeper. (i.e., hardship withdrawals,
loans, rollovers, transfers, and distributions)
- CSU TSA Transition to Fidelity Guide (.pdf)
- CSU TSA Transition Fact Sheet (.pdf)
- Understanding CSU TSA Program Fees (.pdf)