Human Resources - Benefits

Administration Division

Retirement Plan Enhancements

Overview of changes

What is changing for May 2019?
  • Three providers will be available for all the plans at all institutions – Fidelity, TIAA and VALIC.
  • All other providers in the current voluntary 403(b) and 457(b) plans will be eliminated for future contributions as of May 1, 2019. Eliminated providers include: Ameriprise, AXA, First Investors, Lincoln Financial Group, MassMutual.

Peach State Reserves 401(k)/457(b), Primerica, USAA, Voya, and Waddell and Reed.

  • TIAA will be the default provider for the new plans. If you currently invest in the 403(b) or 457(b) plans with an eliminated provider (except for Peach State Reserves 401(k)/457(b)), and do not select a new provider by April 19, 2019, you will be defaulted to TIAA as your provider. You will be enrolled in a new TIAA account with a new contract. Your future contributions will be directed to USG’s default fund for the plans – the Vanguard Institutional Target Retirement Date Funds that corresponds with your projected retirement date based on age.

If you invest with Peach State Reserves 401(k)/457(b) plans, you must enroll with either Fidelity, TIAA or VALIC by April 19. If you do not select a new provider, your contributions to Peach State Reserves will stop with the April 30, 2019 monthly payroll, and you will not be defaulted to TIAA.

  • If you contribute to, invest with, or hold a mutual fund balance with TIAA, a new TIAA contract will be established for you. No new contributions will be directed to the existing contracts.
  • Each provider will offer an investment lineup that is consistent across the Optional Retirement Plan (ORP), 403(b) and 457(b) plans. The investment choices vary slightly among investment providers. These lineups will give you the opportunity to create a diversified portfolio that matches your goals. Review the Guide to New Investments from each provider to see the differences in investment lineups among providers.
  • Existing mutual fund balances at Fidelity, TIAA and VALIC will be transferred to the new investment options as shown in the Guide to New Investments.
  • Expanded investment advice or guidance will be available from Fidelity, TIAA and VALIC, plus CAPTRUST, an independent investment advisory firm that provides investment advice to participants who need help navigating their retirement benefits.
  • Self-directed brokerage options at each provider will be available on the voluntary plans, in addition to the ORP.
  • A Roth after-tax contribution option will be available from all three providers on the 403(b) and 457(b) plans.
  • TIAA will offer new Retirement Plan Loans where the principal loan amount will be deducted from your plan accounts, and loan payments, including interest, will be credited to your account(s) based on the allocation for your contributions. Fidelity and VALIC will continue to offer loans on the 403(b) and 457(b) plans.

What is not changing?

  • The basic design of the ORP and voluntary plans – eligibility and immediate vesting – remains the same.
  • Employees continue to be enrolled automatically into the USG unless certain eligible employees opt out per the plan rules and invest in the ORP instead.
  • Teachers Retirement System (TRS), Employee Retirement System (ERS), Georgia Defined Contribution Plan (GDCP) and ORP contribution rates remain the same as determined by the Board each year.
  • TRS, ERS and GDCP plan design remains the same.
  • The Executive 457(f) plan design remains the same.

Available July 2019

A new Retirement@Work online portal will be available to enroll in the plans, select providers, manage your investments and view your plan balances, including the ORP.