1. Does the Plan’s Auto Enroll feature apply to me?
If you are an eligible employee, Auto Enroll
applies to you.
Eligible Employees include the following:
USFFA-FT
and Librarians
OPEIU,
Local 3
Administrative
Staff and Executive Officers
Laborers/Gardeners,
Local 1877,
ALP
Faculty/Librarians
PSOA
(Public Safety Officers and Dispatchers)
2. If I am an eligible employee, how much will be taken from my
salary and contributed to the Plan?
If you are not contributing to the Plan with
TIAA-CREF, Fidelity or VALIC, 3% will be taken from your salary on a pretax
basis and contributed to TIAA-CREF.
If you are contributing less than 3% with
TIAA-CREF, Fidelity or VALIC, then you will be automatically enrolled into the
Plan with TIAA-CREF for the difference.
If you contribute 3% or more already, you
will not be automatically enrolled and your current contribution will continue.
3. How will my contributions be invested with Auto Enroll?
The Plan lets you invest the contributions in
many different TIAA-CREF investment choices. Unless you choose a different
investment fund or funds, your contributions will be deposited in the Auto
Enroll default investment, the TIAA-CREF Money Market Fund. For additional
information on investment options, visit www.tiaa-cref.org/usfca.
4. Do I have to participate in Auto Enroll if I do not
contribute or contribute at less than 3%?
No. To opt out, please complete the
electronic opt out form found at www.usfca.edu/hr/benefits
and submit within 30 days of eligibility. You will receive an email confirming
your opt-out request.
5. What happens if I don’t opt out of Auto Enrollment with 30
days of eligibility?
The Auto Enroll feature does have a refund
withdrawal provision. So if you don’t opt out before automatic contributions
are made after 30 days of employment, you may still receive a refund up to 90
days after your first automatic contribution. TIAA-CREF will issue you the
payment and at the end of the year you will be issued an IRS Form 1099-R. To
elect for a refund, complete the form available at www.usfca.edu/hr/forms and submit it to the
Human Resources office within this window. If you miss this 90-day window, you
can always stop the automatic contribution but will not be eligible for a
refund.
6. Can I change the amount of my Auto Enroll contributions — or
stop them — at any time?
Yes. You can change the amount you contribute
to the Plan or stop contributions at any time by submitting a new 403(b)
authorization for salary reduction form found at www.usfca.edu/hr/forms and sending it to
Human Resources for processing. Please see the above FAQ regarding the refund
withdrawal provision, if applicable.
7. If I’m Auto Enrolled, must my contributions go to TIAA-CREF?
TIAA-CREF is the default provider for Auto
Enrollment. If you want your contributions to go to Fidelity or VALIC, then opt
out of the auto enroll within 30 days of eligibility and complete an
application for the provider you would like to open an account with and a 403(b)
authorization for salary reduction form to designate the amount you would like
to contribute. Application packets for providers are available in Human
Resources, and the salary reduction form is available at www.usfca.edu/hr/forms. Please return
completed application and form to Human Resources.
8. What are the tax benefits of contributing to the Plan?
Your contributions to the Plan will be taken
out of your salary and are not subject to federal or state income tax at that
time. Instead, they will be contributed to your account, where they have the
potential to grow over time. Your account will be subject to federal and state
income tax only when you make withdrawals from the plan.* This helpful tax rule
is a good reason to save for retirement through plan contributions.
9. If I’m currently contributing a flat dollar amount to the
Plan, how do I know the percentage I’m currently contributing?
You can review your paycheck online via your
Employee Tab on USFConnect. Review your current pay period contribution and
compare it to your gross pay. For example, if your gross earnings are $2,083
per pay period and your current contribution to the Plan is $100, you are
contributing 4.8% ($100/$2,083), so you will not be automatically enrolled.
10. Can I contribute to both a TIAA-CREF account and a Fidelity
or VALIC account and move my assets between the three providers?
Yes, you can have your contributions with one
or more of these providers and you can also move assets from one of these
providers to another. To establish an account outside of Auto Enroll, you will
need to open an account by completing the provider application and a salary
reduction authorization form. The providers have roll over forms to transfer
assets between providers.
11. What additional steps must I take once I’m Auto Enrolled?
If you are satisfied with the amount being
contributed, you do not need to do anything regarding the contribution. When
your account is opened with the first contribution, you should review and
select your investment options available at the TIAA-CREF website at www.tiaa-cref.org/usfca.Otherwise,
your contributions will be defaulted to the TIAA-CREF Money Market Fund.
12. How often will contributions be deducted?
Contributions
will be made for each payroll period (semi-monthly or monthly). For additional
questions, please contact the benefits staff in the Human Resources Office.
