SAINT MARYS COLLEGE OF CALIFORNA RETIREMENT PLAN ENHANCEMENTS - PowerPoint PPT Presentation

SAINT MARY’S COLLEGE OF CALIFORNA RETIREMENT PLAN ENHANCEMENTS Presented By: Heffernan Retirement Services Blake Thibault, Managing Director Rebecca Tapia, Financial Consultant 1350 Carlback Ave., Floor 1 Walnut Creek, CA 94596 (800) 437-0045 www.heffgroupfs.com Security and advisory services offered through LPL Financial Inc., a Registered Investment Advisor Member FINRA/SIPC

Conversation Outline o Saint Mary’s College Retirement Benefits Committee o About Our Independent Advisor o Why we are making enhancements? o What are the enhancements? o Where can I get more information? 2 The financial professionals at Heffernan Retirement Services are also registered representatives with, and securities offered through LPL Financial, Member FINRA/SIPC. Investment advisory services offered through Global Retirement Partners, LLC, a registered investment advisor. Global Retirement Partners, LLC and Heffernan Retirement Services are separate non-affiliated entities from LPL Financial.

Saint Mary’s College Retirement Benefits Committee o Saint Mary’s College has a Retirement Benefits Committee (RBC) that was established to assist and advise the Vice President for Finance and Administration (VPFA) in fulfilling oversight responsibilities with respect to the retirement benefit plans of Saint Mary’s College of California and to help assure that the plans are being managed in the best interest of the plan participants and of the College o Your Saint Mary’s College Retirement Benefit Committee includes: ‒ Jeanne DeMatteo (Chair) ‒ Jean-Ann Balassi ‒ Susan Collins ‒ Michael Hadani ‒ Laurie Panian ‒ Patrice Young o Saint Mary’s College RBC also evaluates the plan demographics to help you prepare for a successful retirement 3 The financial professionals at Heffernan Retirement Services are also registered representatives with, and securities offered through LPL Financial, Member FINRA/SIPC. Investment advisory services offered through Global Retirement Partners, LLC, a registered investment advisor. Global Retirement Partners, LLC and Heffernan Retirement Services are separate non-affiliated entities from LPL Financial.

About Our Independent Advisor o Heffernan Retirement Services (HRS) has been working with Saint Mary’s College since 2013 o HRS is an outside independent advisory firm hired directly by Saint Mary’s College to help fulfill Saint Mary’s College fiduciary responsibility pertaining to oversight of the retirement plans o About Heffernan Retirement Services: ‒ Founded in 1988 ‒ Has over 100+ years of combined retirement plan experience ‒ Manage more than $3.0 billion in retirement plan assets ‒ Advise on over 150 retirement plans ‒ Helps more than 35,000 participants nationwide make informed retirement decisions o Who We Serve: 4 The financial professionals at Heffernan Retirement Services are also registered representatives with, and securities offered through LPL Financial, Member FINRA/SIPC. Investment advisory services offered through Global Retirement Partners, LLC, a registered investment advisor. Global Retirement Partners, LLC and Heffernan Retirement Services are separate non-affiliated entities from LPL Financial.

Why we are making the enhancements? o Saint Mary’s College Retirement Benefits Committee and Heffernan Retirement Services meets quarterly to review the following: ‒ Plan fees to ensure they are fair and reasonable and below peer averages ‒ Retirement plan investments ‒ Plan savings levels ‒ Potential plan outcomes ‒ Services offered to participants ‒ Tools offered to participants ‒ Service providers ‒ Legislative developments ‒ Industry trends ‒ Ensure that the investment options continue to meet the goals and objectives outlined in the Investment Policy Statement for retirement assets o Based on our ongoing analysis of the retirement savings plan Saint Mary’s College is making the following enhancements to the plan effective July 1 st 2019 (pending Board of Trustee approval) 5 The financial professionals at Heffernan Retirement Services are also registered representatives with, and securities offered through LPL Financial, Member FINRA/SIPC. Investment advisory services offered through Global Retirement Partners, LLC, a registered investment advisor. Global Retirement Partners, LLC and Heffernan Retirement Services are separate non-affiliated entities from LPL Financial.

Summary of New Enhancements TIAA DC PLAN TIAA TDA PLAN (EMPLOYER CONTRIBUTIONS) (EMPLOYEE CONTRIBUTIONS) o Implementation of Institutional o Implementation of Institutional Contracts with TIAA Contracts with TIAA o Investment Option Changes o Investment Option Changes o Removal of 1-Year Waiting Period to o Auto Enrollment at 3%* be Eligible to Receive Employer o Auto Bump-Up Increase to 3%* Contributions and Implementation o Auto Escalation of 1% per Year Up to of an 18-Month Vesting Period 7%* o Retirement Plan Year Change from o Retirement Plan Year Change from 7/1 to 1/1 7/1 to 1/1 * The following employees will be eligible for the “Auto” feature enhancements: Faculty with academic rank of: Professor, Associate Professor or Assistant Professor, Visiting Faculty, or Salaried Adjunct Faculty. Staff: who are employed a minimum of 20 hours per week on an annual basis. 6 The financial professionals at Heffernan Retirement Services are also registered representatives with, and securities offered through LPL Financial, Member FINRA/SIPC. Investment advisory services offered through Global Retirement Partners, LLC, a registered investment advisor. Global Retirement Partners, LLC and Heffernan Retirement Services are separate non-affiliated entities from LPL Financial.

What are the enhancements? IMPLEMENTATION OF INSTITUTIONAL CONTRACTS WITH TIAA – EFFECTIVE 7/1/2019 o Saint Mary’s College implemented “Institutional Group Contracts” effective July 1st o Saint Mary’s College strives to ensure that the plans are compliant with regulatory changes and to provide you with prudent investment choices available at reasonable cost o Previously both the DC and TDA plans were set up as Individual Contracts o Individual Contracts had previously limited the College’s ability to change investment options that had been underperforming o There are several investment options in the plan which have restrictions/limitations and cannot be closed if they underperform. 7 The financial professionals at Heffernan Retirement Services are also registered representatives with, and securities offered through LPL Financial, Member FINRA/SIPC. Investment advisory services offered through Global Retirement Partners, LLC, a registered investment advisor. Global Retirement Partners, LLC and Heffernan Retirement Services are separate non-affiliated entities from LPL Financial.

What are the enhancements? IMPLEMENTATION OF INSTITUTIONAL CONTRACTS WITH TIAA – EFFECTIVE 7/1/2019 o With this change in contract type, several of the current investment options in the Saint Mary’s College Retirement Plans are no longer available for future contributions o This change will only affect your investment fund choices for contributions after July 1, 2019 o For TIAA annuity products such as TIAA Traditional and CREF investments, your existing balance will remain in the current contract o You can choose to leave the balance(s)in the existing investment option or move them to the new Institutional contracts o For investment options other than the annuity products described above, your existing balance were automatically redirected to the investment option in the institutional line-up or to a new investment option of your choice the first week of July 8 The financial professionals at Heffernan Retirement Services are also registered representatives with, and securities offered through LPL Financial, Member FINRA/SIPC. Investment advisory services offered through Global Retirement Partners, LLC, a registered investment advisor. Global Retirement Partners, LLC and Heffernan Retirement Services are separate non-affiliated entities from LPL Financial.

What are the enhancements? CONTRACT CLARIFICATION o Previously SMC has multiple individual contracts which have been historical core retirement contracts for employer retirement plans o Legacy individual contracts in the DC & TDA Retirement Plans include: Retirement Annuity (RA) Contracts 1. Supplemental Retirement Annuity (SRA) Contracts 2. o New Group Institutional Contracts in the DC & TDA Retirement Plans will be: Retirement Choice Annuity (RC) Contracts 1. Retirement Choice Plus Annuity (RCP) Contracts 2. 9 The financial professionals at Heffernan Retirement Services are also registered representatives with, and securities offered through LPL Financial, Member FINRA/SIPC. Investment advisory services offered through Global Retirement Partners, LLC, a registered investment advisor. Global Retirement Partners, LLC and Heffernan Retirement Services are separate non-affiliated entities from LPL Financial.