October 21, 2015

Jim Strodel with CAPTRUST presented on upcoming changes to the WFU Retirement Plan.

The Wake Forest Retirement Plan Committee is a team of thoughtful, engaged faculty and staff who are charged with and committed to redesigning the Wake Forest University retirement plan. Until 2010 there were no regulations on how our retirement plan was managed. Things have changed, and we are now subject to ERISA which requires fiduciary oversight. Big changes are now being seen on university campuses nationwide. Decisions we’re making are being made elsewhere as well.

Our WFU 403b Retirement Plan is roughly 427M$ spread out over 4,212 people. 75% receiving WF contributions, and only 34% put our own money aside.

View the presentation here.

What’s Changing?

  • We will move from multiple administrators (Fidelity, Vanguard, and TIAA CREF) to a single one: TIAA-CREF, which will be our sole “record keeper”.
  • Newly developed tiers will provide guidance for less savvy investors, very savvy investors, and everyone in between.
  • We are narrowing from 270 available funds down to 26 (“best in class”) core funds.

Key Features of Changes:

  • Any and all changes we’d like to make – we can do online, anytime. This means much more flexibility to manage our money, our beneficiaries, etc. We can do the work in minutes that used to take days. It also feeds directly into Banner.
  • No changes to WFU contributions or plan eligibility. They can help us get everything rolled into one plan.
  • All new hires will automatically have 5% deducted from their base salary (please note that these are employee contributions) and put into their retirement account for them unless they opt out beginning July 1, 2016. 
  • If we want the opportunity to move beyond the 26 designated funds, we can go outside that through a personal brokerage account (which is not overseen by the plan fiduciaries.)
  • In mid-February 2016, we’ll be able to effect change on our own, to our own sector funds that no longer are part of the 26 available. There will soon be upcoming opportunities to speak with TIAA-CREF representatives. There is an annual fee to have a personal brokerage account.
  • Individuals will be able to manage their retirement plan in one location online, and it will be WFU branded. It will not look like TIAA CREF.
  • A schedule will be posted regarding TIAA CREF representative availability on campus. We can set up meetings with TIAA CREF reps to help us understand everything and make a smooth transition. Call or make an appointment to see them.  

What’s the Timeline?

  • January 4 – Communication package will be sent to faculty and staff
  • January 25 – Campus seminars, info desks, one on one counseling – on campus, at UCC, and Reynolda House, to educate and answer questions.
  • Mid-February – Any desired changes must be made by this point, in order to have everything where we want it on day one. Opening a personal brokerage account after the fact will be an option.
  • February 26 – TIAA CREF online system will be available and will show new balances.

After everything is in place, the WFU Retirement Plan Committee will meet quarterly to review the 26 core funds. If something is not performing well, they will replace it with a new option, and it will be done for us. No fees incurred. Fund information will be provided.

Ideas shared by audience to be considered by Jim’s team:

  • Could we make the first announcement before the holidays, to give folks more time to do our homework? Beth Fay will pass along to the committee for discussion.
  • Could the 26 core funds be made available during the initial communications so that we can analyze and determine if we’re okay with them? Beth Fay will pass along to the committee for discussion.

Final Notes

  • We have a fantastic, far superior retirement program than most corporate institutions.
  • We will continue to have our TIAA CREF rep available on the medical center campus, and available on our campus at least twice/month. We expect that their visibility will increase now that we’ll be using them exclusively.
  • AskHR@nullwfu.edu is who we should contact for questions regarding today’s Jim Strodel presentation.

SAC Business Notes:

Please be sure to vote for Staff Employee of the Year. Reminders will be sent today, tomorrow, and Friday.

Standing Committee Report-Outs:

Craig Zakrzewski (Standing in for Jennifer Abbinett) – Communications Committee

  • Committee has met once this semester. Goal is to try to meet before SAC meetings to share info and be proactive. Goal is to make newsletters engaging and fun to read. Newsletters will be sent monthly.
  • SAC Website will be updated often
  • Events Calendar
  • We’re on Twitter and Instagram – @wfusac
  • Also trying to work on raffles for attending meetings. Working on a SAC Facebook page.
  • We will continue to partner with other sub-committees.
  • Angela Culler asks that we talk to her in HR so that she can include helpful information that they’d like to have disseminated. Also let SAC know that if they have announcements for the newsletter, that they need to have them to us by a specific date.

Wendy Harper – Fringe Benefits Committee

  • Working on employee participation in retirement programs.
  • They are working on educating staff on how to contribute to their own retirements (increasing the 34% current participation).
  • Working on increasing participation in BC/BS Wellness Incentive. So far we have 300 people who have participated this fall. Idea: Help people walk through logging onto the site. PDC site has a link that shows us a video on how to log on and get started. Wendy will email us the PDC link.
  • Working on promoting healthy living programs on campus. Move More, Move Often. There has been frustration around all of the available programs. This committee will work on getting the information out that clarifies this.
  • Coming soon: Dependent Eligibility Audit – A third party administrator will audit us. Birth certificates, tax returns, etc, may be required to prove these dependents should still be on the plan. This third party has been vetted through Info Sec team in IS, and they are secure. This will help lower our insurance costs. Ineligible folks will be taken off plan on a move-forward basis, but no funds will be recouped for past coverages. They will also be taken off dental and any other plans they belong to.

Barbara Stephens-Macri – Pro Humanitate Committee (New Committee!)

New committee, excited to bring work to campus. Charter is written and submitted. Two events planned and partnering with Events committee. Fall and Spring events. Big idea: there are a lot of events already happening – this group can help publicize and increase attendance for those events. Looking for input from members about organizations and opportunities for engagement. Thought from audience: can we help boost engagement with Habitat for Humanity. Would like to ask for ideas on the SAC website, and also perhaps in the newsletter.

Ted Johnson – Membership Committee

  • Working on tracking attendance at all SAC meetings.
  • Looking for greater participation in voting.
  • Looking to break provost group and admin group into two groups.
  • Suggestions? See Ted.

Amy Ciaccia – Professional Development Committee

  • Met with John Champlin (PDC Manager) to compare and mesh goals. How can this group support the PDC and partner with them for more online course offerings?
  • PDC offers classes in great locations, but folks are still interested in online trainings. Review delivery methods as appropriate for each type of class. Evaluating different options with the PDC.
  • Increase awareness of the IS Knowledge Base and all of the resources available. Maybe include link to the MS E-Learning site in the newsletter.
  • Professional Development Week – December 7-11 – working on promoting this.

Susan Edwards – Events Committee

  • In addition to the picnic, interested in partnering this year with Pro Humanitate Committee on a smaller event.
  • Another picnic is being planned for June of next year. Despite the heat and complaints, June is still the best time for everyone for the picnic. Looking to improve the event by increasing shuttles and finding a location with more parking, and increasing communication around the event. Also working on being all-inclusive for everyone to be able to attend, including those with strict schedules, such as Campus Police, Student Health, and Mail Services, to name a few. Maybe consider something fun for third shift employees, including gate security, student health services, custodians, etc.: maybe deliver dinner to these folks one evening.

Nancy Metcalf – Work-Life Balance Committee

  • Will work more with Malika and THRIVE initiatives.
  • Working on getting committee members more involved and participating in Dimensions events and programs.
  • Continuing to seek opportunities to serve staff of WFU.

Sharon Fortner -Tree Care Advisory Committee

  • Kitchin will be landscaped
  • 64 trees were planted on campus this year.
  • Some mature Japanese maples near Reynolds Gym were relocated to other areas on campus
  • In January 2016, the holly hedge around the practice football field on Wingate will be removed.
  • 10 diseased crabapple trees at Graylyn were removed.
  • Many of the larger trees on campus are getting bigger and bigger and roots are exposed and vulnerable to traffic and salt in the winter, due to parking lots. At some point we have to decide on convenient parking or big, beautiful trees?

Kevin Cox – Faculty Senate

  • Wilson Parker is the new president of the Faculty senate. He mentioned that he’d like their best practices committee to take a look at what else they can offer. Wants them to put their heads together and come up with new ideas. What are other schools doing? Parking issues continue. Problems with students not registering vehicles, as well as students simply paying fine after fine after fine, because they have the resources to do so.

General Announcements (see agenda):

November Guest Speaker – Adam Goldstein

Rising Voices

November 10 – Staff Recognition Event

Activity Captains – campus rec is searching for these folks – See Jennifer Killingsworth for more details.

Category: Minutes