|
     
Your enrollment election is made in two steps. First, you decide what percentage of your contributions and the University’s contributions you want invested with TIAA-CREF and what percentage you want invested with Vanguard.
 | TIAA-CREF is an insurance company that offers a variety of investment funds in the form of annuity contracts ranging from the TIAA Retirement Annuity, which guarantees a stated rate of interest, to a CREF Global Equities Account, which invests in securities traded on world markets. To find out about TIAA-CREF, visit TIAA-CREF’s website at www.tiaa-cref.org or call (800) 842-2776 to talk to a representative.
|
| Vanguard is one of the largest mutual fund companies in the United States. It offers more than 60 mutual funds in the form of custodial accounts. Each fund invests your contributions in a certain type of investment such as stocks or bonds (or a combination of both) and each fund has a distinct investment strategy. To find out about Vanguard, visit Vanguard’s website at www.vanguard.com or call (800) 523-1188 to talk to a representative. |
You may divide your contributions and the University’s contributions between these companies in 25% increments, as shown below.
TIAA and CREF
In Combination
|
Vanguard
|
100%
|
0%
|
75%
|
25%
|
50%
|
50%
|
25%
|
75%
|
0%
|
100%
|
|
Although TIAA-CREF and Vanguard are the two investment companies currently available under CRP, the University has the right, upon reasonable notice to participants, to add or eliminate an investment company.
Second, for each investment company you select, you must specify the investment funds in which you want your contributions invested. The types of investment funds currently available under CRP are summarized below:
| TIAA Retirement Annuity. The TIAA Retirement Annuity is a fixed annuity contract. Contributions are used to purchase a contractual or guaranteed amount of future retirement benefits. Once purchased, the guaranteed benefit of principal plus interest cannot be decreased, but it can be increased by dividends. If you choose to have your accumulations in the TIAA Retirement Annuity paid in the form of a lifetime annuity, the amount of your annuity income will consist of the guaranteed amount plus dividends that may be declared each year. Dividends, if any, may increase or decrease and changes are usually gradual. Note that withdrawal and transfer restrictions apply. Lump sum distributions are generally not available for accumulations invested in the TIAA Retirement Annuity unless your accumulations are invested in a TIAA Group Retirement Annuity (“GRA”) and you elect a lump sum distribution within 120 days following your termination of employment. Transfers to other investment funds are also restricted -- TIAA requires that transfers from the TIAA Retirement Annuity be made over a 10-year period and the minimum transfer is $10,000 or, if you have less than $10,000 in accumulations, the balance of your accumulations.
|
| TIAA Real Estate Account and CREF Accounts. The TIAA Real Estate Account and the CREF Accounts are variable annuity contracts. Contributions to the TIAA Real Estate Account and to any of the CREF Accounts are used to purchase accumulation units, or shares of participation in an underlying investment portfolio. Each account has its own investment objective and portfolio of securities and the value of the accumulation units changes each business day. You may also choose to receive annuity income from the TIAA Real Estate Account and any of the CREF Accounts but if you so choose, there is no guaranteed baseline income or declared dividends. Instead, your annuity income is based on the value of the accumulation units you own, a value that changes daily. Lump sum distributions are available from accumulations invested in the TIAA Real Estate Account and any of the CREF Accounts.
|
| Vanguard Funds. The Vanguard funds are mutual fund custodial accounts. Contributions to a Vanguard fund are used to purchase accumulation units, or shares of participation in the fund. Each Vanguard fund has its own investment objective and portfolio of securities and the value of the accumulation units changes each business day. Lump sum distributions are available from accumulations invested in the Vanguard funds. If you wish to have your accumulations in a Vanguard fund paid in the form of a lifetime annuity, those accumulations must first be transferred to a TIAA-CREF investment fund. |
The University has the right to add other investment funds and to remove any existing investment funds upon reasonable notice to participants.
It is important that you carefully choose your investments because the benefits payable from your retirement savings account will depend on the performance of the investment funds you choose over the years. To help you make informed investment decisions:
| General descriptions of the investment objectives and risk and return characteristics of each investment fund, including information relating to the type and diversification of assets or investment strategy of each investment fund, are included with the CRP enrollment application.
|
| More detailed information may be obtained directly from the investment company, including the following:
|
 | Copies of any prospectus or financial reports for each fund, if applicable.
|
| A list of assets and a description of investment contracts for each fund.
|
| Current share values and net performance history for each fund.
|
| A description of the annual operating expenses for each fund.
|
| A description of any distribution or transfer restrictions for each fund. |
To find out about TIAA-CREF’s investment funds, visit TIAA-CREF’s website at www.tiaa-cref.org or call (800) 842-2776 to talk to a TIAA-CREF representative. To find out about Vanguard’s investment funds, visit Vanguard’s website at www.vanguard.com or call (800) 523-1188 to talk to a Vanguard representative. You may also obtain this information from the Benefits Office.
|
The University of Chicago®