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Tax-deferred Annuity (TDA) / 403(b) changes for calendar year 2024

In order to implement process improvements and to comply with recent SECURE Act 2.0 changes, the University of Alaska Human Resources (ÁùºÏ²Ê»ã HR) is updating the Tax-deferred Annuity (TDA) vendor list.

As of January 1, 2024, ÁùºÏ²Ê»ã will no longer support TDA payroll deductions to the following vendors:

1. AXA Equitable
2. Horace Mann
3. Invesco (formerly Oppenheimer)
4. PFS Investments
5. Templeton
6. T. Rowe Price
7. Fiduciary Trust Company (formerly Waddell & Reed and Ivy Investments)

ÁùºÏ²Ê»ã HR will maintain TDAs with TIAA, Fidelity, Lincoln, and Corebridge (formerly VALIC/AIG). ÁùºÏ²Ê»ã HR will also temporarily maintain TDAs with American Funds, Vanguard, and VOYA (Northern Life/ING). Due to low participation in American Funds, Vanguard, and VOYA (Northern Life/ING), these vendors will be reviewed again in the new calendar year.  

Why are we changing?

• Low Participation
  Each of the seven (7) vendors has historically low participation. Over the last 5 years, all seven (7) of these vendors maintained only 20 employee accounts or less.
  

• Process Improvement
  This change allows ÁùºÏ²Ê»ã HR to increase efficiency and provide cost savings by reducing the number of vendors in which ÁùºÏ²Ê»ã HR prepares, sends, and reconciles biweekly payments.
  

How does this affect me?

• Universal Availability
  All ÁùºÏ²Ê»ã employees - including temporary and student employees - are eligible to participate in a TDA. Specific communications have (and will continue to be) sent to ÁùºÏ²Ê»ã employees who are contributing to a TDA vendor that is no longer being supported.
  
  
• Employees who currently participate in a TDA with one of the affected vendors
  If you are currently participating in a TDA with one of the vendors, your will automatically be stopped on December 16th, 2023. This will be paid out to the vendor on your December 29, 2023 paycheck - the final paycheck of 2023. No further payroll deductions will be taken and sent to the vendor. Direct communication will be sent to these employees with next steps.
  
  
• Employees who are not affected
  If you currently have an open TDA with TIAA, Fidelity, Lincoln, Corebridge (formerly VALIC/AIG), American Funds, Vanguard, or VOYA (Northern Life/ING), you do not need to take any action at this time. You may update your current biweekly deduction amount and/or yearly goal amount at any time.
  

• Questions
  Please reach out to us at (907) 450-8242, email us at ua-benefits@alaska.edu, or set up an appointment.

Emailed via benefits newsletter on 11/28/23, 12/5/23, 12/12/23. Individual emails sent to affected employees on 11/1/23, 12/12/23.
Contact Benefits:  (907) 450-8242  | ua-benefits@alaska.edu | schedule one-on-one time