The UW 403(b) Supplemental Retirement Program (SRP), formerly the UW Tax-Sheltered Annuity (TSA) 403(b) Program, is a voluntary program intended to supplement your retirement savings. UW System and TSA Review Committee teams have reviewed the program, including current recordkeepers and investment options, with an eye to cost-effectiveness, simplification and ease of use for our participants.
This FAQ is intended to help answer questions you may have about the changes occurring this fall and early next year.
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The 403(b) Program is a voluntary retirement savings program. All UW System employees are eligible and can enroll at any time. You can find more information about the program by visiting the 403(b) Program web page.
After a thorough review, UW System is modernizing and enhancing the program to simplify the enrollment process for participants, streamline the investment options, and make the program easier to understand.
Effective July 2021, the UW Tax-Sheltered Annuity (TSA) 403(b) Program will be renamed the UW 403(b) Supplemental Retirement Program (SRP), or 403(b) SRP for short.
The program name was changed for two main reasons:
- The new name is more reflective of what the program offers -- a tax-advantaged way to supplement your retirement savings with investments in mutual funds and/or annuity products.
- The acronym "TSA" can be confused with airport security abbreviations.
Note: Staff and recordkeepers are working on changing the program name on all necessary web pages and documents. Some changes may not be made until after the official plan conversion on January 1, 2022.
With the help of consultants, UW System staff, the TSA Review Committee (TSARC), and subcommittee teams thoroughly reviewed the program in 2019 and 2020, looking at retirement program best practices.
In addition to changing the name, the TSA Review Committee decided to:
- Complete a Request For Proposal (RFP) for recordkeepers in the fall of 2020. Through this RFP, TIAA and Fidelity were chosen as recordkeepers for the program moving forward. Beginning January 1, 2022, T. Rowe Price, Ameriprise, and Lincoln will no longer be active recordkeepers.
- Simplify the investment line-up by choosing 18 best-in-class fund options; virtually the same investment options will be available from both recordkeepers.
- Provide a self-directed brokerage window for employees who wish to invest in funds outside the 18 selected funds.
A recordkeeper is the plan's investment platform; it tracks plan assets. Until approximately 15-20 years ago, many 403(b) recordkeepers could only track their own proprietary funds. Today recordkeepers can track a full range of investments from multiple providers.
The UW System sometimes uses "provider" as a synonym for recordkeeper on the program page.
The change to simplify the recordkeepers and investments line-up will be effective January 1, 2022. If you are a current participant in the program, you will begin receiving direct communication in the fall of 2021 about changes you may want to make for 2022. There is no immediate action required at this time. You will receive information this fall to support any decisions you want to make.
All current participants of the program will be affected. Changes differ by recordkeeper:
- TIAA and Fidelity
Both will remain active recordkeepers, and you can continue to contribute through payroll. However, the investment line-up will change on January 1, 2022, and you may want to review the available investment options. You will receive more information in the fall of 2021.
- T. Rowe Price, Ameriprise, and Lincoln
These recordkeepers will no longer be active in the program as of January 1, 2022 and you will not be able to contribute to them via payroll.
TIAA and Fidelity will be the only active recordkeepers effective January 1, 2022.
After reviewing the program, the TSA Review Committee voted to issue a Request For Proposal (RFP) for recordkeeper or recordkeepers in August 2020 through the UW System Office of Procurement. A committee of Subject Matter Experts met numerous times to evaluate the proposals. Based on the results, intent to award contract letters were sent in the fall of 2020 and contracts were signed in 2021.
Starting January 1, 2022, you will no longer be able to contribute to these recordkeepers. You may choose to continue your contributions with either TIAA or Fidelity or to stop your contributions completely. If you don't take any action, your current contribution amount will be continued with TIAA, the default recordkeeper.
The TSA Review Committee formed an Investment Subcommittee that met frequently with the TSA Program investment consultant, Aon Investments USA Inc. The subcommittee reviewed information about best practices in plan design and then selected the type of funds to include in the investment line-up and reviewed the top funds in each of the categories. The subcommittee made recommendations to the TSA Review Committee and they and the UW System leadership approved them. These recommendations were included in the Request For Proposal.
Beginning in January 2022, the investments line-up will be virtually the same for TIAA and Fidelity, and each recordkeeper will offer a self-directed brokerage window.
Updates and Communication
No action is needed at this time. This fall, we'll support you with communication and information to help you take action and make any changes to your recordkeeper and/or investments.
Updates are added to the 403(b) Program Enhancements web page as they are made available; however, all current participants will receive detailed information in the fall of 2021.