CREF Fee Structure Change

Posted March 24th, 2015 at 7:14 pm.

The below email was sent to faculty and staff by Director of Human Resources Marty Mastascusa  on March 23.

All regular employees should have recently received a communication piece from TIAA-CREF advising of a change in the fee structure on the CREF funds.  If you have a TIAA-CREF account, that information can be found by logging into their website www.tiaa-cref.org and then clicking the link located in the yellow box that is currently found at the top of the site.

CREF currently has a single-class fee structure and charges the same expense ratios across employer-sponsored and individual plans/products of all sizes. Starting April 24, 2015, each CREF account will be re-designated to one of three different fee structures.  Bryn Mawr College investments will be designated in the middle level (R2) and will experience a small increase in fees.  However, please be advised that if you have any individual CREF plans, such as an IRA or Roth IRA, they will the designated to the highest level (R1) and will experience a rather significant change in fees.  To provide an example, the fees for the CREF Stock Fund will change as follows:

Current Fee (as of May 1, 2014)                   New  R1 Fee             New R2 Fee

0.455%  0.660%         0.460%

If you have CREF accounts from other schools, fees that had previously been the same across different institutions may no longer be the same.   The general rule is that larger universities may have lower fees (R3) and very small schools will end up having the same R1 fees as the individual plan holders.  The bulk of schools will probably be classified as R2 like Bryn Mawr.

Please note that this change does not affect the TIAA accounts (Traditional or Real Estate) and does not affect any of the TIAA-CREF mutual funds, including the lifecycle funds.

The Department of Labor requires all employees eligible to participate in the Bryn Mawr College Retirement Plan to be notified of this change.  That included participants who have only elected Vanguard funds as well as new and part-time employees who have not yet elected to participate in the Bryn Mawr College Retirement Plan.  Such participants were mailed or received this communication via e-mail from TIAA-CREF:

https://www.tiaa-cref.org/public/pdf/cref_60day_notice_r2.pdf?tc_mcid=em_NonPartEligible

Please call me at ext. 5266 if you have any questions or send me an-email.

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