Retirement Plan Investment Lineup

fund lineup

Effective June 1, 2022, the University has streamlined the investment options available through the Retirement Plans. The Plans include the Retirement Plan for Officers, the Voluntary Retirement Savings Plan, the Defined Contribution Plan for Supporting Staff and the Defined Contribution Plan for the Supporting Staff Association at the College of Physicians and Surgeons.

Overview

Key aspects of the Plans will remain the same:

  • Employer contributions. The University's contribution structure has not changed.
  • Existing plan design. Certain features of the Columbia University Retirement Program have remained the same, including the number and types of plans and the eligibility requirements.
    • Plans include the Retirement Plan for Officers of Columbia University, the Columbia University Voluntary Retirement Savings Plan, the Columbia University Defined Contribution Plan for Supporting Staff, and the Columbia University Defined Contribution Plan - Supporting Staff Association at the College of Physicians and Surgeons.
  • Number of recordkeepers. At this time, both TIAA and Vanguard will continue to provide administrative recordkeeping services and be open for ongoing contributions.
  • Assets in legacy Retirement Annuity (RA) and/or Group Supplemental Retirement Annuity (GRSA) contracts [TIAA ONLY]. Any balance you may have in legacy RA and/or GRSA contracts will not be affected by this transition. However, you may affirmatively elect to transfer all or any portion of your balances in a legacy RA and/or GRSA contract, including those in the CREF Stock and/or TIAA Real Estate Accounts, to the new tiered investment lineup at any time. See the TIAA Transition Guide for more information.

The following changes have been made to the investment options offered under the Plans, effective June 1, 2022:

Updates to the investment lineup. The Committee has streamlined the investment options available through the Plans. As a result, some funds are being closed and will not be available in the new investment lineup. The new lineup will be arranged into three tiers, offering you flexibility and a variety of investment choices to create a diversified retirement portfolio. See next section on "New Tiered Investment Options."

Transfer of existing balances (and future contributions). You are not required to take any action. Existing balances and future contributions may be impacted in one of four ways:

  • Share Class Change: Existing balances in Vanguard Total Bond Market Index Fund, Vanguard Extended Market Index Fund, Vanguard Total International Index Fund, and Vanguard Total Stock Market Index Fund will automatically transfer to a lower-cost share class of the same fund. No other changes will occur to these funds.
  • "Similar Fund" Mapping: If you have a balance in, or direct contributions to, an investment option that is being closed and the Committee has determined there is a "reasonably similar" fund in the new tiered investment lineup, your balance, and any future contributions, will be automatically transferred to that new fund.
  • "Target Date Fund" Mapping: If you have a balance in, or direct contributions to, an investment option that is being closed and the Committee has determined there is not a "reasonably similar" fund in the new tiered investment lineup, your balance, and any future contributions, will be automatically transferred to a Vanguard Target Retirement Fund with a target date closest to the year in which you will reach age 65.
  • "In-kind" Mapping: Some funds are being closed and will not be available in the new investment lineup. In addition, some of the investment options that are being closed may no longer open to new investors (e.g., Vanguard PRIMECAP Fund). If you would like to continue to invest in the mutual fund investment options that will no longer be available in the Plans, consider opening a self-directed brokerage account during the "early choice" brokerage election window. Through the special one-time "in-kind" transfer process, your balances from all closing investment options in the Plans will be automatically transferred "in kind" to your self-directed brokerage account and will continue to be invested in the same share class options.

New self-directed brokerage account. For investors with specialized needs, a self-directed brokerage account will allow participants to make investments outside of the Plans' investment option lineup. Additional costs and fees may apply. See the Vanguard and TIAA guides for more information {insert link}

Increased access to investment education and retirement planning advice. The Committee wants you to have access to information and resources to help you understand the upcoming changes and how they may affect you. The Committee, in collaboration with Vanguard and TIAA, have designed a program of webinars and one-on-one advice sessions to provide information and updates.

The Plans’ investment options continue to offer you the flexibility to create a retirement portfolio that meets your investment preferences and goals. Your investment options are grouped into three tiers:

  • Tier 1: Target-date funds. Target-date investment funds are designed to create a diversified portfolio within one fund. The asset allocation changes over time and becomes more conservative as you near the target date, or retirement date.
  • Tier 2: Core funds. Provides a set of investment options, selected by the Committee, designed to help you build your own diversified investment portfolio.
  • Tier 3: Self-directed brokerage account. Available for those who are more engaged investors who want to invest in a wide range of mutual funds outside of the Plans’ investment lineup. Neither Columbia University nor the Committee monitors the investments offered through a self-directed brokerage account. 

Frequently Asked Questions

The Committee decided to make changes to the Plans’ investment lineup to further reduce fees and expenses and modernize the Plans’ investment menu considering current best practices. The streamlined lineup eliminates investment options with overlapping investment styles. This change may help reduce any participant confusion in the fund selection process. In addition, decreasing the number of investment options may allow more effective communication of the individual investment options and may provide participants with the ability to reduce overall investment expenses. Moreover, the new menu will continue to provide participants with the ability to diversify their portfolios across a broad spectrum of investment options.

The tiered investment structure packages or categorizes investment options in a manner that helps guide participants through the investment decision-making process. Participants first select a path that is appropriate for them based on their:

  • Investment knowledge
  • Time for managing their own investment portfolios
  • Risk tolerance
  • Interest in making investment decisions, including deciding asset allocation and selecting investment options

Education materials are then tailored to meet participants’ needs. For example, an investor who lacks the time for managing their own investment portfolio or a novice investor who is uncomfortable making their own asset allocation decisions may select a pre-mixed asset allocation fund in Tier 1. The communication materials will then assist the participant in selecting the Vanguard Target Retirement Fund based upon their time horizon. Keep in mind that even though Target Retirement Funds simplify the investment process, they still require some monitoring to ensure that the portfolio is in line with your current situation.

Yes, you can sign up for a one-on-one consultation session.

You can expect a thorough review of your retirement plan account and an action plan for moving forward. These consultation sessions last approximately 45 minutes. You will need all your investment account statements, including any retirement investments outside of the retirement plans and your most recent Social Security statement, if available.

A consultant will use this information to understand your current financial situation and develop an action plan. To schedule a session, go to:

ESG stands for environmental, social, and corporate governance (ESG). This is a type of fund available in the Plans.

Yes. The Calvert U.S. Large Cap Core Responsible Index Fund (CISIX) will provide investors with an offering that seeks to provide superior long-term performance and positive impact. Calvert Research and Management is a recognized leader in responsible investing. The fund offers broad exposure to companies that meet The Calvert Principles for Responsible Investment (Calvert Principles), which provide a framework for considering ESG factors. Calvert Research and Management conducts deep, proprietary research across approximately 200 peer groups using over 200 key performance indicators (KPIs) to measure material ESG factors and actively engage with company management.

Please review the Vanguard Brokerage Enrollment Process guide for step-by-step instructions.

You will need to change your contribution allocations through the Vanguard website and elect to invest new contributions in the self-directed brokerage option.

After your next plan contribution, you must access your self-directed brokerage account through TD Ameritrade (accessed through a link from your account on the Vanguard website) and purchase shares of the fund(s). After the initial purchase settles in your self-directed brokerage account you can set up recurring automatic purchases in the self-directed brokerage account through TD Ameritrade (accessed through a link from your account on the Vanguard website)

Please review the TIAA Brokerage Enrollment Process guide for step-by-step instructions.

Open a self-directed brokerage account (TIAA-specific)

  1. Log in to your account at TIAA.org/columbia. On the home page, make sure you are on the Account Summary tab. Select the retirement account to which you want to add brokerage and click the arrow.
  2. From the Quick Links at the top of the page, select Add retirement brokerage, and follow the prompts to complete your information.

Don’t have an online account? Getting set up is easy. Visit TIAA.org/columbia, select Log in in the top right-hand corner, then Register for online access. You can also call TIAA for help at 800-842-2252, weekdays, 8 a.m. to 7 p.m. (ET).

Self-directed brokerage account costs

If you choose to invest through a self-directed brokerage account, there may be additional commissions on transactions and other account-related fees charged to your account. Visit  TIAA.org/SDA_CAA for a complete list of the commissions and fees. In addition, there are specific fund fees and expenses that will apply. These are described in each fund’s current prospectus or at TIAA.org/columbia.

Monitoring your brokerage account

If you choose to open a self-directed brokerage account, keep in mind that you are responsible for selecting and monitoring the investments under that account.

Neither Columbia University nor the Committee monitor the investments offered through a self-directed brokerage account. In addition, TIAA doesn’t offer investment advice for balances in these accounts. The Committee recommends that you exercise caution when investing through the Plans’ self-directed brokerage account.