Frequently Asked Questions
About Changes to the CSU TSA Program
In addition to the questions below information will be updated on the CSU's online benefits portal as it becomes available.
- What is the Unique Identifier that Retirement Manager requires in order to log-in?
- The Unique Identifier in Retirement Manager is the employee’s Social Security Number (SSN). When the employee logs on for the first time, the employee will have to provide his/her Social Security Number (SSN), last name and date of birth. Retirement Manager will prompt the employee to create a password. Thereafter, each time the employee logs into Retirement Manager, the employee’s SSN and a password that the employee created will need to be used to gain access.
- On November 3 or 4, I tried to make a total contribution of $2000 on Retirement Manager. Retirement Manager would not allow me to contribute more than $1,375.00 per month. Why couldn't I contribute more of my salary?
- As of November 5, 2008, the $1,375.00 per month limitation has been removed from Retirement Manager. Employees may defer up to the 402(g) limit of $16,500 and the 414(v) age 50 catch-up allowance of $5,500, if applicable. Employees may contribute up to their current monthly salary, but once contributions reach the applicable limits, Retirement Manager will not submit future deductions for processing on an employee’s behalf to the State Controller’s Office.
- I will be teaching in spring 2009, and decided to enroll in Retirement Manager during November 2008, but I was not recognized. Why?
- For purposes of the special TSA enrollment period, CSU provided AIG Retirement with a monthly eligibility file of active, eligible employees as of October 31, 2008. If you were not an active employee by that date, you will not be reflected in Retirement Manager during the open enrollment period. Retirement Manager will be updated each month with eligibility data of the prior business month.
- If I am a current participant of Fidelity, do I need to complete a new application to open an account?
- No. Existing Fidelity participants are not required to complete a new application.
- A customer service representative at Fidelity indicated that the U.S. Spartan Index Fund is one of the fund investment choices effective January 1, 2009, but it is not listed on Fidelity’s fund sponsor insert that is included in the Enrollment kit. Is this fund available?
- Yes, the U.S. Spartan Index fund is an available fund investment choice as of January 1, 2009. Fidelity has confirmed that the U.S. Spartan Index fund was inadvertently omitted from the fund sponsor insert.
- I am a current participant of TIAA-Cref and want to know if I need to complete a new application to open an account.
- No. Current TIAA-Cref participants are not required to complete a new application.
- Which of the five fund sponsors require both new and existing participants to complete an application to open an account?
- AIG Retirement, ING and MetLife.
- The MetLife website will not allow me to open a new account online. Why?
- In the next few days, MetLife plans to add information on its website for enrollees regarding online and paper enrollment. In the interim, participants can locate a MetLife representative by calling 866-796-4104 (Northern CA) or 866-294-0807 (Southern CA), to get assistance with opening an account.
- Will a fee be charged to participants by the Master Administrator?
- No, the Master Administrator is not charging a fee to participants, or to the CSU for its recordkeeping services.
- When can I select the fund investment choices of the fund sponsor(s) that I set up contributions for in Retirement Manager?
- AIG Retirement and ING both have the ability to allow you to designate your fund investment choices now for January 2009. The ability to designate Fidelity, MetLife and/or TIAA-Cref fund investment choices will be available as of January 1, 2009.
- If I do not choose my fund investment choices prior to the fund sponsor(s) posting my contributions in January, what will happen?
- Your contributions will be invested in a default fund disclosed by each fund sponsor. You can opt to make an exchange to a different fund investment choice(s) at a later date.
- The Enrollment kit states that I need to enroll by November 28, 2008, if I want a contribution to be deducted from my December pay period (January 1, 2009) pay warrant. Will I be able to enroll between November 29-December 31?
- No. Once the special enrollment period ends, access to Retirement Manager will be temporarily disabled until January 1, 2009 in order to process enrollments. As of January 1, 2009, and thereafter, enrollments, and contribution changes will need to be submitted in Retirement Manager by a certain cutoff date each month. Click here to see the cutoff dates for the monthly pay periods in 2009.
- What is the minimum amount I can contribute to a TSA?
- The CSU Tax Sheltered Annuity Program requires a $15.00 minimum monthly contribution (per fund sponsor). During the open enrollment period, Retirement Manager is unable to restrict contributions under $15.00. Please note, effective January 1, 2009, Retirement Manager will be reconfigured to prohibit an employee from contributing less than $15.00.
- I was hired on November 3, 2008. Will I be able to participate in the special TSA enrollment?
- No. If you were not an active employee by October 31, 2008, you will not be reflected in Retirement Manager during the open enrollment period. Employees hired after October 31, 2008, are encouraged to enroll in Retirement Manager on or after January 1, 2009, and will be able to select a monthly contribution amount that will still allow them to exhaust the 2009 limits that are applicable.
- How is the CSU's TSA Program changing?
- The TSA Program will undergo several important changes for 2009. The most visible changes will be the consolidation of fund vendors and the addition of a Master Administrator, who will be responsible for administering the TSA Program. The CSU will establish a plan administrative committee to oversee the program and will adopt a written plan document that governs the plan.
- Why has the CSU decided to make these changes to the TSA Program now?
- Recent changes to IRS regulations mandate that employers who offer a 403(b) plan take a more active role in the oversight and governance of their plan. While the changes to the TSA Program are in response to these updated regulations, the CSU is committed to making the transition as smooth as possible. These changes will simplify participation in the TSA Program, will result in greater oversight of it, and are expected to reduce administrative fees paid by participants while improving the level of service they receive.
- When will the changes to the CSU’s TSA Program take effect?
- The changes to the TSA Program will take effect January 1, 2009. If you currently participate in the TSA Program and want to continue participating on that date, you’ll need to take action during the special enrollment period, which will be held October 2008 – November 2008. You’ll receive more information closer to that special enrollment period.
- How will the CSU decide who will be the new TSA Program Master Administrator?
- The CSU has received proposals from leading 403(b) plan administrators for the Master Administrator role. The final selection of the Master Administrator will be made by an evaluation committee appointed by the CSU.
- How will the changes to the TSA Program affect the number of funds offered?
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Currently, the TSA Program offers over 90 different investment product options from a variety of providers. Some of the funds overlap, and the large selection of options can be overwhelming.
To better manage and monitor the funds offered through the TSA Program, the number of funds will be reduced. While the number of options will be reduced from over 90 vendors and thousands of investment funds to a more streamlined selection, the options will continue to provide a broad range of choices for participants regardless of their investment strategies and tolerance for risk.
- Will the funds I’m currently invested in be available January 1, 2009?
- While the committee responsible for selecting the funds has not yet reached a final decision, it is likely that some of the funds in which you’re currently invested will not be available as of January 1, 2009. This is because the CSU is consolidating the number of funds offered. No decision has been made whether any of the funds currently offered will be offered as of January 1, 2009.
- What happens to my current investments if the CSU stops offering the funds in which I’m currently invested?
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Any money that you currently have invested in investment products offered through the TSA Program will remain invested in those products after January 1, 2009, even if those products aren’t offered by the TSA Program going forward. However, you’ll still be able to change investments within the products offered by your current vendor after January 1, 2009.
If you take action during the special enrollment period (October 2008 – November 2008), you’ll also be able to transfer the money you’ve invested in those products through the TSA Program to the new products that will be offered when the restructured TSA Program takes effect. In addition, you’ll be able to transfer your investments to the new funds at any time after that, based on your personal situation. Once you’ve transferred any prior investments to the new funds, you will not be able to transfer back to the closed funds. However, you’ll be able to transfer among any of the new funds at any time.
- When will the list of fund vendors be available?
- The committee selecting the fund vendors is conducting a thorough review to ensure that the restructured TSA Program will offer a selection of top-quality products. The CSU expects this process to be complete no later than September 15, 2008, and a list of fund vendors will be available shortly thereafter.
- If I enroll during the special enrollment period, when will the payroll contributions for the current TSA Program end and when will the contributions for the restructured TSA Program begin?
- Your last contribution for the current TSA program will end with the November pay period (which is the last pay period of the 2008 tax year). The TSA Program deduction taken out of the December pay period warrant will be applied to the restructured TSA Program effective January 1, 2009.
- What is the status of transferring 403(b) funds from one vendor to another before the special enrollment period?
- The CSU has placed a freeze on in-service transfers, with the exception of age 59½ rollovers. This means you cannot transfer funds from your current fund vendor to another fund vendor at this time. However, you still can change investment funds among those offered by your current fund vendor. Later in 2008, the CSU will notify you of the date you’ll be able to transfer your prior investments in the TSA Program to the new funds that will be offered once the restructured TSA Program takes effect.
- Will the changes to the CSU TSA Program have any effect on the DPA Savings Plus Program?
- No. The Savings Plus Program will continue to administer 401(k) and 457 Plans, which aren’t affected by the new IRS regulations regarding 403(b) accounts.
- How can I find more information about the changes to the TSA Program?
- The CSU is committed to giving you the information, tools, and resources you need to make decisions that are right for you. Before the special enrollment period, you’ll receive a packet with details about the Master Administrator, the new funds that will be offered, and the steps you’ll need to take to enroll. In addition, we’ll update the CSU’s online benefits portal with the most up-to-date information as it becomes available.