The transition of all CSU employees’ retirement plans to Fidelity has been completed, and the human resources team is sharing important information with faculty/staff about next steps.

Accounts previously invested in mutual funds through Corebridge or TIAA have been successfully moved to funds in CSU’s new investment menu administered by Fidelity.

Those who had annuity investments in TIAA or Corebridge that could not be automatically transferred were not moved. Those accounts may be moved by the plan participant at any time, if they choose. To do so, schedule an appointment with a Fidelity Workplace Financial Consultant for a one-on-one consultation by calling 800-642-7131 or visiting Fidelity.com/Schedule to make an appointment.

In addition, for those who have not done so already, it is important for employees to log into their Fidelity account at NetBenefits as soon as possible to designate their beneficiary(ies). Fidelity is reporting that there are 3,821 active employees who have not yet elected a beneficiary.

New transparent fee structure

The updated retirement plan recordkeeping and administrative fees will begin with the fourth quarter of the plan year, in October, and will be fully transparent. The fees will appear on employees’ Fidelity statements, viewable at NetBenefits.

The amount of the retirement plan fees, commonly known as participant recordkeeping service fees, was an important aspect of the Retirement Plans Review Committee’s recommendations around the transition. Unlike the previous method of assessing the fees as a percentage of fund balances, Fidelity set a fixed amount that is required for its administrative and recordkeeping services.

The University’s Retirement Plans Review Committee recommended a tiered approach to provide equity based upon account balances across plan participants. Those with smaller balances pay less than those with greater balances. CSU’s retirement plan committee developed the tiered structure to ensure that sufficient fees are collected to satisfy Fidelity’s fixed annual requirement, which is significantly lower in administrative fees than what was previously paid. To review information regarding fees, please review the spring 2023 informational session presentation located on the retirement project webpage. A recording is also available.

Administrative fees for DCP and 403(b)

Beginning Oct. 1, the quarterly administrative fee will be deducted from participants’ accounts based on the value of their account balance in the CSU retirement plan(s). Participants with accounts in both the DCP and the 403(b) will pay a single fee in accordance with the following methodology.

Those with accounts in both the DCP and the 403(b) will be assessed one fee based on their DCP balance. For those who are not a DCP participant, but are contributing to the 403(b) account, the retirement plan administrative fee will be assessed on their 403(b) balance.