Change to One Retirement Vendor
The University of Arkansas System Office has announced that split retirement contributions to both TIAA and Fidelity are being discontinued at all campuses. UAMS employees may now only select one retirement plan vendor – TIAA or Fidelity – and can no longer designate a percentage to go to each. Employees who were contributing to both were notified by Human Resources on April 7 of their opportunity to select only one vendor.
The reason for this change is the conversion of Human Resources and Payroll systems at all UA campuses to Workday. Workday will support only one retirement vendor election per pay period. Allocating a 50/50 or other combination split to both TIAA and Fidelity within a single pay period is no longer available.
The University has selected Fidelity as the default vendor at this time. This means new employees who do not select a vendor will default to Fidelity. It also means that current employees who split their contributions between TIAA and Fidelity, and did not elect to change to 100% TIAA, will be changed to 100% Fidelity. This change will be made the first week of May.
The use of a default vendor allows the University to further negotiate the reduction of the recordkeeping fees currently charged to participants in both TIAA and Fidelity, thus possibly increasing the returns on your investments. The University will revisit the decision of the default vendor later this year.
While the requirement to use only TIAA or Fidelity within a single pay period is firm, please be aware of the following and your option to make changes going forward:
- You may still continue to change your election between TIAA and Fidelity as often as you like. Whichever vendor is in effect on the last day of the pay period is the vendor retirement contributions will be sent to for that payroll. If you want to continue making contributions to both, consider switching to the other vendor mid-year or some other time frame. You can also change how much you voluntarily contribute to your UA Retirement Plan as often as you like. Click here for the form to change your contribution or to change between TIAA and Fidelity.
- Both your employee contribution and the UA contribution/match will follow your vendor election.
- There is no requirement to reallocate your existing retirement funds to/from either vendor. Balances you have in either TIAA or Fidelity can remain there.
- There is no impact to your existing and future account balances with either vendor.
- There is no impact on your existing ability to request a transfer of funds between TIAA and Fidelity at any time. If this is something you wish to do, perhaps to consolidate your funds in one vendor, contact the vendor which has the funds you want to transfer out. You can do this via the vendor’s website or by calling them.