Both Fidelity and TIAA offer monthly Systematic Withdrawals (“SWP” for Fidelity, “SWAT” for TIAA), which is your current method of payment.
However, TIAA’s fixed interest fund, the TIAA Traditional Account, does not make payments via SWATs as VALIC’s Fixed Account Plus and Fixed Interest Option do.
The TIAA Traditional Account’s primary mode of payment is an annuity. Hence, it is very important that you review the information below about VALIC’s Fixed Account Plus and the TIAA Traditional Account “sweep”.
Fidelity does not offer a “fixed interest” fund.
So, this “fixed interest” asset class will not be available to pay your SWATs at either Fidelity or TIAA. TIAA can offer an annuity with fixed interest.
Other than this “fixed interest” fund issue, you will find both firms offer a variety of asset classes and investment funds with which to adequately diversify your assets: pay your monthly SWATs AND deduct your monthly Retiree Insurance premiums.
On November 11, 2019, the DHE will “sweep” all ORP assets remaining at VALIC at the close of business on Monday, November 4 2019, to TIAA.
All of your ORP assets in VALIC’s Fixed Account Plus, under the Portfolio Director Annuity will be swept to TIAA’s Traditional Account.
As noted above, the Traditional Account does not make monthly Systematic Withdrawal payments, which is your current method of payment. The Traditional Account’s primary payment method is an annuity.
IF YOU DO NOT WANT your Fixed Account Plus and Fixed Interest Option assets swept to TIAA’s Traditional Account, then you MUST transfer your ORP assets to either Fidelity or TIAA prior to October 11.
After learning about the services and investment funds available at Fidelity and TIAA, you should contact Erion Lamme here at the DHE to coordinate your transfer out of VALIC to your new Provider. Erion works closely with the Group Insurance Commission, and will ensure that your transition to a new Provider does not, in any way, jeopardize your continued Retiree Insurance coverages.
NOTE: Erion cannot help you select a new Provider, nor can he provide advice about investing your ORP assets.
617 994 6930