Changes to the Syracuse University employee retirement plan go into full effect on Monday, following changes to the plan announced in September.

The updated plan allows for more investment options and financial guidance, said Kal Alston, senior vice president for human capital development, who oversees the human resources department.

Employees became aware of the change after receiving an email in September. The changes were further discussed at the University Senate meeting in October.

Employees were taken by surprise when they received the brochure on new retirement plans via email, since the decision to re-examine the plan had not been announced beforehand.

At 61, Craig Dudczak, chair of the budget and fiscal affairs committee and an associate professor of communication and rhetorical studies, said he was especially interested in the changes because of where he is in his career.

Dudczak said his concern was that the changes were suddenly dropped on employees without allowing for greater campus discussion beforehand.

“Do we have meaningful conversations being made in advance of decisions being made?” he said.

In response to the questions raised by the unanticipated change, Alston was invited to the October USen meeting to discuss the changes and spoke briefly on the topic.

Alston said the Administrative Benefits Committee, which is authorized by SU’s Board of Trustees to handle topics such as retirement, looked into the changes. She said it was “a fairly normal process” and that perhaps employees were taken by surprise because at least three years have passed since the last retirement plan change.

An employee’s retirement fund depends on a combination of university contributions, optional employee contributions and the choices the employee makes regarding his or her plan. Before the changes, only funds specific to financial services organization TIAA-CREF were available at SU.

Bruce Carter, chair of the Agenda Committee and USen moderator, said he was unaware that the university was planning to change the retirement plan and heard from other faculty members who were unaware as well.

The explanation Alston gave the senate for changing the plan was “very reasonable, but did not involve a broad cross section of faculty,” Carter said.

Alston said the changes came about after SU employees inquired whether retirement plan platforms other than TIAA-CREF would be available.

SU will now be offering funds from TIAA-CREF, Vanguard, T. Rowe Price, American Funds and Oppenheimer Funds, among others. Older choices like TIAA Traditional Annuity, CREF Stock Account and TIAA Real Estate Account will still be available.

Some funds that SU employees could previously use are being eliminated, and four investment options will be restricted. Starting Monday, the balances in these accounts will be moved to a replacement fund most similar to the eliminated fund. Employees who wish to update their retirement portfolio differently must do so before Friday at 4 p.m.

For further information, the university is asking SU employees use the information packet mailed to their SU email account in September or call TIAA-CREF at (855) 842-2873.

Published on October 25, 2012 at 3:01 am

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