Details of the exit plan and its implementation will be reported via direct correspondence with participants, and on this web site, as a common resource for everyone.
VALIC Wrap Up - Blackout Period Over
TIAA has reconciled VALIC’s allocation files with the two wire transfer of assets last week: opened accounts for everyone who was “swept” to TIAA; and posted funds to their accounts.
Each new participant at TIAA should receive a “Welcome” package from TIAA; confirming establishment of your new account, and directions to seek help with any questions you may have about your new account.
With these transactions completed, the Blackout period has ended, which means you can access your new ORP accounts and conduct transactions in them (e.g transfer assets between investment funds).
Beneficiaries for Your TIAA Account
As reported earlier, all ORP assets at VALIC there were not in one of VAL’s “fixed interest” accounts will be allocated to the TIAA Lifecycle Fund that is appropriate for your age.
You may allocate the assets in the Lifecycle fund to any other funds available on TIAA’s ORP fund line-up, on-line, at any time.
VALIC’s Fixed Interest Funds - Terminated Employment
If you held ORP assets in any of VALIC’s fixed interest funds (Fixed Account Plus; Fixed Interest Option), then all of those assets were transferred to your new Provider’s account (Fidelity or TIAA).
If you were “swept” to TIAA, then these funds would be allocated to TIAA’s Traditional Account.
If you transferred to either Fidelity or TIAA on your own, then these assets were transferred to your new Provider, and allocated to investment funds that you identified.
VALIC’s Fixed Interest Funds - Actively Employed Participants
If you held ORP assets in any of VALIC’s fixed interest funds (Fixed Account Plus, Fixed Interest Option), then these funds can be transferred to your new Provide account via five annual installments.
Do it yourself: If you transferred your ORP assets, on your own, to either Fidelity or TIAA, then the remaining four installments will be transferred to your new Provider account, and allocated according to the asset allocation you have on-file.
Sweep: If your ORP account was “swept” from VALIC to TIAA, then the five installments will be allocated to TIAA’s Traditional Account.
VALIC’s Fixed Account Plus assets will be allocated to the Traditional Account preserving your minimum interest guarantee of 3%
VALIC’s Fixed Interest Option will be allocated to the Traditional Account with a variable minimum interest rate.
Sweep to TIAA Update
VALIC has sent their files of information about each participant being swept to TIAA.
TIAA will use this information to establish new accounts for everyone, and where applicable record beneficiaries.
Each ORP participant who is new to TIAA will receive a “Welcome” letter that confirms establishment of the new accounts and the account numbers. The letter also includes contact information for questions about the new accounts.
We anticipate VALIC transferring the assets next week.
Please contact us the DHE via email with any questions you may have about this business: ORP@dhe.mass.edu
VALIC’s “hard” black out period will begin at the close of business on Friday, November 1. After that, VALIC cannot process any participant transactions (e.g. transfer assets between investment funds).
VALIC will begin preparing to “sweep” plan assets out to TIAA. This will involve organizing participant accounts by different groupings (actively employed; terminated; holds fixed interest funds; doesn’t hold fixed interest funds; etc).
Once organized, VALIC will also begin preparing allocation files for TIAA. TIAA will use the files to ensure each participant’s assets coming out of VALIC are properly credited to the new TIAA accounts.
We anticipate the actual asset transfer to occur on or soon after Monday November 11, and will provide updates on the process via this web site.
Please direct any questions you may have about the “sweep” to us via email: ORP@dhe.mass.edu
VALIC Transfer Out Form Acceptance
The DHE will not accept VALIC Transfer-Out forms after Oct. 17.
From this point forward, all ORP participants holding assets at VALIC will be “swept” to TIAA in early November (see the “Black Out” calendar).
Active Employees currently contributing to VALIC, who did not select a new Provider on their own, will automatically have their future contributions directed to TIAA.
Window Closed to transfer ORP assets from VALIC to either Fidelity or TIAA on Friday October 11.
However, the DHE can authorize transfer forms that arrive in the next few days.
If you are transferring to either Fidelity or TIAA, remember to:
Fixed Account Plus & Fixed Interest Option Transfers
While DHE can authorize transfer forms up to October 28, any Transfer Forms submitted after October 11 will result in this configuration:
Active Contributors being SWEPT to TIAA: Your campus’ payroll office will update the payroll system to direct future contributions to TIAA.
VALIC Transfer Form
For those transferring, on their own (Do It Yourself approach) from VALIC to either Fidelity or TIAA, you must complete and submit VALIC's Transfer-Out form.
Call VALIC for their Transfer-Out Form: (800) 448-2542.
Two Product Forms: VALIC has different forms for their Portfolio Director Annuity and their RSVP Mutual Funds. Please note that VALIC’s forms are for multiple transactions. We’ve provided a sample of each form with instructions for your reference.
The Dept. of Higher Education (DHE), as the Plan’s Administrator, will not extend VALIC’s contract as a Provider under the Optional Retirement Program (ORP). While the termination is effective immediately, VALIC’s role under the ORP will be phased-out over the course of 2019.
The Plan will not accept any new ORP enrollments or retirements for VALIC.
However, all other aspects of VALIC’s role in the ORP will remain unchanged as we make our way through this process.
Participants may continue current contributions to their ORP account with VALIC.
The DHE’s decision to release VALIC from the ORP is the first major step in the Commonwealth’s efforts to gradually revise the ORP’s structure away from the “multi-Provider” approach of the 1980s and 1990s, to an efficient contemporary approach.