your transition guide— the road to retirement · 2017-09-15 · that’s why we’re pleased to...

Your Transition Guide—the road to retirementAnnouncing changes to the Cranbrook Educational Community Retirement Program

2 Questions? Call 800-842-2252 or visit TIAA.org/cranbrook

Table of contentsA new chapter is about to start 1Action plan for the changes 2For current TIAA participants 3For Empower participants 4Target-date fund birth chart 5Your new investment menu 6-7Understanding retirement plan fees 8Retirement Plan Portfolio Manager 9Retirement plan investment advice 10On-site events 10Q&A 11-12About TIAA 13We’re here to help Back cover

Questions? Call 800-842-2252 or visit TIAA.org/cranbrook 1

A new chapter is about to start Helping you plan and save for the future is important. That’s why we’re pleased to announce the following changes to the retirement program at Cranbrook Educational Community. Whether you are currently making salary deferral contributions or not, we encourage you to review this Transition Guide carefully to learn how your current retirement plan accounts will be affected and to discover the new and exciting retirement saving and investment opportunities that will be available to you.

No longer employed by Cranbrook Educational Community? You are receiving this Guide because you have investments in one or more of the Cranbrook Educational Community Retirement Plans. Even though you are not actively contributing, you should review this information carefully to learn how your account could be affected.

What you need to know • TIAA will become the single service provider for the Cranbrook

Educational Community Retirement Program. TIAA was selected by Cranbrook in order to deliver comprehensive retirement services at a reasonable cost. As a result of this change, all participants will receive a new account at TIAA.

• Cranbrook is introducing a new investment menu and new accounts will be issued to all participants for the 401(a) Plan and the Section 403(b) Plan. The new investments, carefully selected by Cranbrook, give you the ability to create a diversified retirement portfolio that matches your risk tolerance, investment goals and preferences.

All current mutual fund balances will be transferred to the new accounts. Any balances in existing TIAA and CREF annuity accounts will remain where they are although no new contributions, rollovers or transfers may be made to them. See page 4 for information about the Guaranteed Interest Fund.

• There will be an open election period where you can set up your investment allocation. During this time, retirement plan participants can select from the new investment options before the new accounts receive the first contribution and mutual fund balances are transferred. If no action is taken during the open election period, all contributions and mutual fund balances will be directed to the age-appropriate lifecycle fund. You can make changes to your allocation at any time.

• There will be increased transparency on fees. A new fee structure is being implemented to make it easier to see the cost of each investment option, as well as fees paid for plan administration.

• You can receive personalized advice on the plan’s investment options from a TIAA financial consultant. This service is available as part of your retirement program, at no additional cost to you. Investment advice is available online, by phone or through a one-on-one advice session.

• Retirement Plan Portfolio Manager will be available. This optional service is designed to monitor your retirement account, providing investment advice based on your needs and goals. Also known as a managed account, the service gives you professional oversight and a systematic, disciplined approach to managing your money.

• There will be a Blackout Period for Empower balances. To facilitate a smooth transfer of current investment balances to TIAA, a brief “Blackout Period” will take place. During this time, you will not be able to change your investment choices, make withdrawals or transfer funds. The Blackout Period applies to balances currently invested at Empower. Please review the enclosed Blackout Notice for additional details. Any scheduled payroll contributions will continue to be deducted from your paycheck and deposited to your new TIAA account during the Blackout Period.

Retirement plan changes start in October.Key dates Event

Week of October 2, 2017 On-site seminars begin.

October 6, 2017 You will be enrolled in a new account. TIAA will mail you a confirmation kit with important information on making the most of your participation with TIAA.

Open Election Period starts.

October 13, 2017 Your new TIAA accounts receive the first payroll contribution.

October 16, 2017 at 4 p.m. (ET) Blackout Period expected to begin for Empower participants. See accompanying notice for details.

October 24, 2017 On or about this date, account balances transfer from Empower to TIAA. TIAA becomes the single service provider for the retirement plan. Please note: The date of the transfer depends on the accurate, timely transfer of data from Empower to TIAA. If this does not occur, the transfer could be delayed.

November 7, 2017 Blackout Period for Empower participants expected to end. You can now access and update your entire retirement account at TIAA, including balances transferred from Empower. Please note: The end of the Blackout Period depends on the accurate, timely transfer of data from Empower to TIAA. If this does not occur, the end of the Blackout Period could be delayed.

Week of November 13, 2017 Any mutual fund balances in current TIAA accounts will be transferred to the new accounts.


Action plan for the changesAll plan participants, including current TIAA participants, will have the option to select investment options from the new menu during an investment election period, starting October 6, 2017. While changes to your investment elections can be made at any time, the investment election period allows you to select from the new investment options prior to October 10, 2017, when the changes go into effect.

Starting on October 6 you can:• Access your new account online at TIAA.org/cranbrook.

• Update your investment allocation for future contributions and mutual fund balances.

• Review your beneficiary designation and update if needed.*

Once the transition is complete, you will be able to make changes to your existing balances. For details on how the balances and future contributions will transfer, refer to pages 3-4.

Have questions?• Attend a seminar to get a guided tour of the plan changes

(page 10).

• Schedule an advice session with a financial consultant to get personalized retirement plan advice (page 10).

• Use the online Retirement Advisor tool. It provides investment advice based on your goals and risk tolerance. You can access this tool by logging in to your new account, at TIAA.org/retirementadvisor.

* For married participants: Under many retirement plans, spouses are entitled to receive 50% of the participant’s retirement plan assets. If you would like to direct less than 50% to your spouse, you and your spouse will need to complete a spousal waiver form for each affected contract.

Photograph by James Haefner, courtesy of Cranbrook Center for Collections & Research.


For current TIAA participantsNew accountsYou will be enrolled in new accounts on October 6, 2017, and TIAA will send you an enrollment confirmation. Your current beneficiary designation(s) will be applied to your new accounts.

Open election period for future contributions and mutual fund balance transfersFrom October 6 to October 13, 2017, you may set up your investment allocation and make updates to your beneficiary designations for your new accounts. While you can make changes at any time, the open election period allows you to set your preferences before the first contribution is made to the new accounts. Log in to your account at TIAA.org/cranbrook and select from the new investment menu. First time users will need to register for online access and set up a user ID and password.

Starting October 13, 2017, all contributions will be directed to the new accounts. If you took no action during the open election period, contributions will be directed to the lifecycle fund of a year that is closest to when you reach age 65, based on your year of birth as shown in the chart on page 5. For example, if you will turn 65 in 2044, contributions will be directed to the Lifecycle 2045 fund.

Your mutual fund balances will be transferred to the new accounts according to your investment allocation during the week of November 13, 2017. If you take no action during the open election period, your balances will transfer to the age-appropriate lifecycle fund. You can transfer these balances to other investments on the menu once the transfer is complete.

Existing annuity account balancesAny TIAA and CREF annuity balances will remain where they are, although no new contributions or rollovers may be made to them. You will only be permitted to transfer your remaining annuity balances among the CREF Money Market Account, CREF Stock Account and TIAA Traditional Annuity.

Your current annuity account balances are held in Retirement Annuity, Supplemental Retirement Annuity, Group Retirement Annuity and/or Group Supplemental Retirement Annuity contracts. In your new accounts, balances in annuities will be held in Retirement Choice contracts. You may transfer any of your existing annuity account balances to the new contracts. However, there are a few differences between the current contracts and the new Retirement Choice contract, which mostly apply to the TIAA Traditional Annuity and are highlighted below.

• Under the Retirement Choice contract, TIAA Traditional has a rate guarantee that is between 1% and 3%, determined annually, which may be lower than the guaranteed rate in your current contract.* The adjustable rate guarantee in the new contracts allow TIAA to be more responsive to the prevailing interest rate environment, and provides the potential for higher credited rates through the crediting of additional amounts.**

• When TIAA Traditional balances are transferred out of an existing contract, you risk giving up a favorable crediting rate on older contributions.

• TIAA Traditional balances in the Retirement Choice contract can be liquidated within a shorter time frame than under the existing Retirement Annuity and Group Retirement Annuity contracts.

• Moving money from an existing contract to a new contract is a permanent decision. Money cannot be moved back into your current contract.

For more details, see the Contract Comparison chart located at TIAA.org/comparison. We recommend you speak to a TIAA financial consultant by calling 800-842-2252 to discuss your options before making any transfers.

* Guarantees are subject to Teachers Insurance and Annuity Association of America’s claims-paying ability.** TIAA’s Board of Trustees declares whether additional amounts will be paid in March of each year. Additional amounts are not guaranteed. Such additional

amounts, when declared, remain in effect for the “declaration year” which begins each March 1 for accumulating annuities and January 1 for payout annuities. Additional amounts are not guaranteed for periods other than the period for which they were declared.


For Empower participantsNew accountsYou will be automatically enrolled in new TIAA accounts on October 6, 2017. TIAA will mail you a confirmation of this automatic enrollment. Your new TIAA account will have your beneficiary designated as “Estate” and your investment election allocated to an age-appropriate target-date lifecycle fund unless you take action during the open election period. Once you receive your confirmation, we recommend you immediately establish a TIAA secure user ID and password so that you can update your beneficiary information. You may do this online at TIAA.org/cranbrook. Please note, if you already have a login for another retirement account with TIAA, you will use the same credentials for the new account.

Open election period for future contributions and mutual fund transfersFrom October 6 to October 13, you have the opportunity to set up your investment allocation for your new accounts. While you can make changes to your accounts at any time, the open election period allows you to set your preferences before the first contribution is made and before your mutual fund balances are transferred to the new accounts. Log in to your account at TIAA.org/cranbrook and select from the new investment menu.

Starting October 13, 2017, all contributions will be directed to the new accounts at TIAA. If you took no action during the open election period, contributions will be directed to the lifecycle fund of a year that is closest to when you reach age 65, based on your year of birth as shown in the chart on page 5. For example, if you will turn 65 in 2044, contributions will be directed to the Lifecycle 2045 fund.

On or about October 24, 2017, your current mutual fund balances with Empower are scheduled to be transferred to your new TIAA account and invested in the allocation you designated or to the corresponding lifecycle fund if you did not give instructions during the open election period.

Blackout PeriodTo help ensure the smooth transfer of account balances from Empower, there will be a brief Blackout Period. During this time, you will not be able to perform transactions (i.e., change investments, make withdrawals, take a loan, transfer funds, etc.). The Blackout Period is expected to begin at Empower on or around October 16, 2017, at 4 p.m. (ET).

Please note: The date of the plan changes and the end of the Blackout Period depend on the accurate, timely transfer of data from Empower to TIAA. If this does not occur, the end of the Blackout Period could be delayed. Payroll contributions for the retirement plans will continue to be withheld during the Blackout Period. See the enclosed Blackout notice for more details.

How your account balances will transferYour Empower balances will be liquidated and transferred to your new TIAA account, with the exception of any assets in the Guaranteed Investment Fund. The process involves multiple transactions and you will receive a few confirmations: (1) the liquidation or sale of your Empower mutual fund balances, (2) the transfer of the cash proceeds to TIAA, (3) the temporary investment of cash received at TIAA into the Vanguard Treasury Money Market Fund (VUSXX), and (4) a final transfer to your designated investment allocation in your new TIAA account. Please note, if you took no action during the open election period, your final transfer will be invested in the age-appropriate TIAA-CREF Lifecycle Fund. Once these steps are complete and the Blackout ends, you may login to your account and make additional changes at any time.

If you have assets in the Guaranteed Interest FundAssets invested in the Empower Guaranteed Interest Fund are subject to a 12-month contractual delay before funds are eligible to be liquidated and transferred to your new TIAA account. During that time, Empower will continue to administer this investment and you will be allowed to execute any plan-permitted transaction. At the end of the 12-month period, you will receive additional information on the transfer of these funds to TIAA. In the meantime, if you have any questions, you may contact Empower at 855-756-4738.


Target-date fund birth chartPlease locate your birth year in the chart below to identify the age-appropriate TIAA-CREF Lifecycle Fund that corresponds to the year nearest to the year you turn age 65.

Birth year New investment option Ticker

Before 1948 TIAA-CREF Lifecycle 2010 Fund – Institutional Class TCTIX

1949-1953 TIAA-CREF Lifecycle 2015 Fund – Institutional Class TCNIX

1954-1958 TIAA-CREF Lifecycle 2020 Fund – Institutional Class TCWIX

1959-1963 TIAA-CREF Lifecycle 2025 Fund – Institutional Class TCYIX

1964-1968 TIAA-CREF Lifecycle 2030 Fund – Institutional Class TCRIX

1969-1973 TIAA-CREF Lifecycle 2035 Fund – Institutional Class TCIIX

1974-1978 TIAA-CREF Lifecycle 2040 Fund – Institutional Class TCOIX

1979-1983 TIAA-CREF Lifecycle 2045 Fund – Institutional Class TTFIX

1984-1988 TIAA-CREF Lifecycle 2050 Fund – Institutional Class TFTIX

1989-1993 TIAA-CREF Lifecycle 2055 Fund – Institutional Class TTRIX

1994-present TIAA-CREF Lifecycle 2060 Fund – Institutional Class TLXNX


Annual Fund Operating Expenses

Plan Servicing Fee Calculations (A + B = C)

Investment Options Ticker

Gross Expense

Ratio2 (%)

Net Expense Ratio2

(%)

A. Revenue Sharing3

(%)

B. Servicing Fee/Credit

(%)

C. Total Administrative

Cost (%)

Guaranteed

TIAA Stable Value4 N/A 0.000 0.000 0.130 0.005 0.135

TIAA Traditional Annuity4 N/A 0.000 0.000 0.150 (0.015) 0.135

Fixed Income (Bonds)

PIMCO Income Fund – Institutional PIMIX 0.450 0.450 0.000 0.135 0.135

TIAA-CREF Bond Fund5 – Institutional TIBDX 0.310 0.310 0.000 0.135 0.135

Multi-Asset

TIAA-CREF Lifecycle 2010 Fund5 – Institutional TCTIX 0.490 0.370 0.000 0.135 0.135

TIAA-CREF Lifecycle 2015 Fund5 – Institutional TCNIX 0.500 0.380 0.000 0.135 0.135

TIAA-CREF Lifecycle 2020 Fund5 – Institutional TCWIX 0.520 0.400 0.000 0.135 0.135

TIAA-CREF Lifecycle 2025 Fund5 – Institutional TCYIX 0.530 0.410 0.000 0.135 0.135

TIAA-CREF Lifecycle 2030 Fund5 – Institutional TCRIX 0.540 0.420 0.000 0.135 0.135

TIAA-CREF Lifecycle 2035 Fund5 – Institutional TCIIX 0.550 0.430 0.000 0.135 0.135

TIAA-CREF Lifecycle 2040 Fund5 – Institutional TCOIX 0.550 0.440 0.000 0.135 0.135

TIAA-CREF Lifecycle 2045 Fund5 – Institutional TTFIX 0.570 0.450 0.000 0.135 0.135

TIAA-CREF Lifecycle 2050 Fund5 – Institutional TFTIX 0.580 0.450 0.000 0.135 0.135

TIAA-CREF Lifecycle 2055 Fund5 – Institutional TTRIX 0.640 0.450 0.000 0.135 0.135

TIAA-CREF Lifecycle 2060 Fund5 – Institutional TLXNX 1.600 0.450 0.000 0.135 0.135

TIAA-CREF Lifecycle Retirement Income Fund5 – Institutional TLRIX 0.520 0.370 0.000 0.135 0.135

These new choices offer you more flexibility to create a diversified1 retirement portfolio.To learn more about the new investment options, go to TIAA.org and enter the ticker symbol in the site’s search feature.

Please note: Your Guaranteed options are fixed annuities that pay you interest at competitive crediting rates that are announced in advance. There is no explicit expense ratio because these are fixed annuities.

Your new investment menu

continued


Your updated investment menu continued

Annual Fund Operating Expenses

Plan Servicing Fee Calculations (A + B = C)

Investment Options Ticker

Gross Expense

Ratio2 (%)

Net Expense Ratio2

(%)

A. Revenue Sharing3

(%)

B. Servicing Fee/Credit

(%)

C. Total Administrative

Cost (%)

Real-Estate

TIAA Real Estate Account6 (variable annuity) QREARX 0.850 0.8500 0.240 (0.105) 0.135

Equities (Stocks)

American Funds Growth Fund of America Fund – R6 RGAGX 0.330 0.330 0.000 0.135 0.135

American Funds Washington Mutual Investors Fund – R6 RWMGX 0.300 0.300 0.000 0.135 0.135

Ivy International Core Equity Fund – N IINCX 0.830 0.830 0.000 0.135 0.135

Nuveen Small Cap Value Fund5 – I FSCCX 1.070 1.000 0.250 (0.115) 0.135

Oppenheimer Developing Markets Fund – Y ODVYX 1.070 1.070 0.250 (0.115) 0.135

T. Rowe Price International Discovery Fund7 PRIDX 1.200 1.200 0.150 (0.015) 0.135

T. Rowe Price Mid-Cap Growth Fund RPMGX 0.770 0.770 0.150 (0.015) 0.135

TIAA-CREF International Equity Index Fund5 – Institutional TCIEX 0.060 0.060 0.000 0.135 0.135

TIAA-CREF S&P 500 Index Fund5 – Institutional TISPX 0.050 0.050 0.000 0.135 0.135

TIAA-CREF Small-Cap Equity Fund5 – Institutional TISEX 0.420 0.420 0.000 0.135 0.135

Vanguard Extended Market Index Fund – Admiral VEXAX 0.080 0.080 0.000 0.135 0.135

Vanguard Selected Value Fund – Investor VASVX 0.350 0.350 0.000 0.135 0.135

1 Diversification is a technique to help reduce risk. It is not guaranteed to protect against loss.2 Gross expense ratio includes all of an investment’s expenses. Net expense ratio takes into account any investment fee waivers and expense reductions,

giving an indication of what is currently being charged.3 “Revenue Sharing” is a term that describes the practice when investment providers share in the cost of plan administration. Please note that TIAA

Traditional, TIAA Real Estate, TIAA Stable Value, and all CREF Annuity accounts do not have an explicit revenue share. Rather they have a “plan services offset” that is applied to your plan’s administrative and recordkeeping costs.

4 TIAA Traditional Annuity and TIAA Stable Value are guaranteed insurance contracts and are not investments for federal securities law purposes. Any guarantees under annuities issued by TIAA are subject to TIAA’s claims-paying ability. Interest credited includes a guaranteed rate, plus additional amounts as may be established by the TIAA Board of Trustees. Such additional amounts, when declared, remain in effect for the “declaration year” which begins each March 1 for accumulating annuities and January 1 for payout annuities. Additional amounts are not guaranteed for periods other than the period for which they were declared.

5 A contractual fee waiver applies. See prospectus for the fee waiver expiration date.6 In order to provide the performance, stability, and liquidity attributes of a stable value option, participant transfers from stable value options are subject

to an industry standard 90-day equity wash rule. This means participants are prohibited from transferring from TIAA Stable Value directly to competing funds. Competing funds are plan investment options that exhibit a pattern of performance consistent with stability and include money market funds, short-term bond funds, the TIAA Real Estate Account, and the TIAA Brokerage Services Account. The TIAA Brokerage Services Account option is considered a competing fund since it offers access to competing funds. Participants wishing to transfer amounts from TIAA Stable Value to competing funds must first transfer to non-competing funds, where the amount originally transferred must remain for 90 days before the participant can then transfer the amount to one or more competing funds. In addition, to minimize the negative effects of frequent trading, transfers into TIAA Stable Value are restricted for 30 days following a transfer out.

7 A redemption fee waiver applies. See prospectus for the fee waiver expiration date.


Understanding retirement plan feesCranbrook Educational Community strives to keep the retirement program current with industry best practices. Please know that there have always been costs to participate in the program. However, your current cost to participate is paid for by the plan investment options. You have not seen an explicit charge before because these charges are currently bundled within the annual operating expense ratios of the investments. Under the new arrangement, your fees will be transparent.

General administrative services

Your plan charges an annual Administrative Fee to cover services such as recordkeeping, accounting, investment advisory and other plan and participant services.*

Effective October 1, 2017, an annual Plan Servicing Fee of up to 0.135%, $1.35 per $1,000 invested, will be deducted on a quarterly basis. This amount will be realized by assessing a fee or credit to each investment you choose within the plan. Each fee or credit will be applied to your account on the last business day of each quarter and is identified as a “TIAA Plan Servicing Fee” or a “Plan Servicing Credit” on your quarterly statements (see the “Investment-specific services” section for more detail).

If your account balance is less than $25 on the date that a fee is to be assessed, no fee will be charged.

Investment-specific services

Each of the plan’s investment options has a fee for investment management and associated services. Plan participants generally pay for these costs through what is called an expense ratio. Expense ratios are displayed as a percentage of assets. For example, an expense ratio of 0.50% means a plan participant pays $5 annually for every $1,000 in assets. Taking the expense ratio into consideration helps you to compare investment fees.

In some cases, investment providers share in the cost of plan administration. This practice is called “revenue sharing.” An investment company may pay a portion of an investment option’s expense ratio to TIAA, the recordkeeper, to help offset the cost of plan administration. The amount of any associated fee or credit is determined by comparing the Total Administration Cost to the Revenue Sharing amount. If the Revenue Sharing amount exceeds the Total Administration Cost, a credit is applied. If the Revenue Sharing amount is less than the Total Administration Cost, then a fee is applied.

For information on investment-specific expenses and fees, please refer to the investment chart on pages 6-7. You can also find the expense ratios and other fees and expenses at TIAA.org/cranbrook or in the prospectuses at TIAA.org/performance.

Redemption fee

This fee is designed to discourage frequent trading activities by investors, which drive up fund operating costs and reduce returns for long-term investors in the funds. It’s only charged when the mutual fund shares have not been held in an account for a specified period of time. Each mutual fund company imposes its own rules regarding the amount charged and the holding period, which are both detailed in the fund’s prospectus.

The T. Rowe Price International Discovery Fund (PRIDX) shown on page 7 is the only fund on this investment menu that has a redemption fee associated with it. See the prospectus at TIAA.org/cranbrook for more information.

All things considered

Fees are important, but they are just one factor in your decision-making process. In addition to fees and expenses, you should be sure your investment choices reflect your personal risk tolerance, the time frame until your retirement, and the appropriate balance allocation to suit your investment needs.

* Plan servicing fees can be deducted from Retirement Choice and Retirement Choice Plus contracts. However, plan servicing fees cannot be deducted from Retirement Annuity, Group Retirement Annuity, Supplemental Retirement Annuity and Group Supplemental Retirement Annuity contracts.


A new service is coming soon to your retirement plan. Instead of wondering if your portfolio needs adjusting every few months, Retirement Plan Portfolio Manager lets you delegate the job.Put another way, Retirement Plan Portfolio Manager is an optional service designed to monitor your retirement account so you don’t have to do all the work.

Retirement Plan Portfolio Manager provides investment advice based on your goals and needs. Also known as a managed account, the service gives you professional oversight and a systematic, disciplined approach to managing your money.

Your portfolio is reviewed on a quarterly basis—and adjusted as needed—to help keep it on track with your chosen allocations. Features include:

• Customized advice: Based on your goals, we’ll help you decide how much to save, an appropriate asset mix and specific investment options.

• Ongoing monitoring and portfolio adjustments: We’ll make adjustments based on market conditions and other factors that may affect your investments. These adjustments include quarterly asset reallocation and rebalancing.

• Modify direction as needed: You can update your preferences anytime and we’ll fine-tune our recommendations.

• Quarterly statements: Show adjustments made to your portfolio so you can see your current investment mix.

How much does it cost?

If you enroll in this service, an annual fee of 0.30% would be deducted from your account on a quarterly basis. The fee is based on an average daily balance of your enrolled plan during the quarter. For example: If you had an average balance of $10,000 in your account, the annual fee would be $10,000 x .30 = $30, a quarterly fee of $7.50 which would be deducted on the first day of the subsequent quarter.

Service for the retirement plans begins October 6, 2017.

You can get started by contacting a TIAA financial consultant. Just call 855-728-8422, weekdays, 8 a.m. to 7 p.m. (ET). Or if you prefer to enroll online, visit TIAA.org to log in to the secure site, and access the Retirement Advisor online tool under the Insights section on the What We Offer tab. Follow the steps in the tool to get your recommendations and sign up for the Retirement Plan Portfolio Manager.

Retirement Plan Portfolio Manager

Photograph by Colton Graub (CS ’13), courtesy of Cranbrook Center for Collections & Research.


On-site eventsReal-time answers to your questionsSeminars Consider attending a one-hour seminar presented by a TIAA financial consultant to learn more about the changes to the Cranbrook Educational Community Retirement Plans at the following dates and times:

Date Time Location

Wednesday, October 4 4 p.m. – 5 p.m. Cranbrook Institute of Science Auditorium

Thursday, October 5

10 a.m. – 11 a.m. Cranbrook School Assembly Hall – located on the 2nd Floor of Hoey Hall

1:30 p.m. – 2:30 p.m. Cranbrook House Library

4 p.m. – 5 p.m. Cranbrook School Kingswood Auditorium – located across the hall from the Kingswood Dining Hall

Friday, October 6 10 a.m. – 11 a.m. Cranbrook Art Museum deSalle Auditorium

As a participant in the plan, you have access to personalized retirement plan advice on the plan’s investment options from a TIAA financial consultant. This service is available as part of your retirement program at no additional cost to you.

TIAA’s advice is designed to help you answer key questions including:

1. Am I on track to reach my retirement savings goals? We’ll help you analyze how your investments are performing, and determine if you’re saving enough to help meet your needs.

2. Which combination of retirement plan investments is right for me?Get assistance picking the right investments, based on your plan’s investment options, diversifying properly and allocating contributions to balance your need for growth potential with your tolerance for risk.

3. How can I meet my income needs in retirement? Get help determining the amount you’ll need to meet your retirement income goals.

Retirement plan investment advice

How you can access advice

OnlineYou can get quick, convenient answers via the Retirement Advisor online tool. Visit TIAA.org/retirementadvisor and log in to your account.

By phone or in personYou can receive personalized retirement plan investment advice either over the phone or in person.

You can schedule your advice session by calling 800-732-8353, weekdays, 8 a.m. to 8 p.m. (ET) or online at TIAA.org/schedulenow.

IMPORTANT: The projections or other information generated by the Retirement Advisor tool regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results and are not guarantees of future results. Results may vary with each use and over time.


Q&A1. Why is Cranbrook Educational Community updating

the retirement program? Cranbrook Educational Community is committed to providing you with competitive retirement benefits and recently conducted a review of the retirement program. As a result of this review and bidding process, Cranbrook selected TIAA as the single provider for administrative recordkeeping and education services because TIAA offered the best overall value. The resulting changes are intended to give you the investments, services and tools you need to pursue your retirement savings goals.

2. I am not currently contributing. Am I affected by these changes? If you are an active employee, but you are not participating in the plan, now is a great time to enroll and start saving. After October 6, 2017, visit TIAA.org/cranbrook. In addition to enrolling, you can learn more about the plan, including performance information on the investment options and how to set up your investment strategy.

If you are no longer employed by Cranbrook, but you have balances in mutual funds, you will be enrolled in a new account. See pages 3-4.

3. How can I learn about the new investment options?A list of the new investment options is included in this guide. You can visit TIAA.org and enter the ticker symbol in the site’s search feature.

4. What if I would like help making investment choices?You can get personalized advice on the plan’s investment options from a TIAA financial consultant. This service is available as part of your retirement program at no additional cost to you.

To schedule an advice session, call TIAA at 800-732-8353, weekdays, 8 a.m. to 8 p.m. (ET) or schedule online at TIAA.org/schedulenow.

5. What should I expect from an advice session?You can expect a thorough review of your account and an action plan for moving forward. Advice sessions last approximately one hour. Bring all your investment account statements, including any retirement investments outside of the retirement program and your most recent Social Security statement, if available. A TIAA financial consultant will use this information to understand your current financial situation and develop an action plan. You may bring anyone you like to your session with you.

6. What happens to my current outstanding loan, systematic withdrawal, TPA (transfer payout annuity), or required minimum distribution? You will receive separate communications if any actions are required on your part.

continued

Photograph by James Haefner, courtesy of Cranbrook Center for Collections & Research.


7. How do lifecycle funds work?Each lifecycle fund consists of underlying mutual funds that invest in a broad range of asset classes. The allocations and risk level depend on how many years remain until the fund’s target date. To help reduce risk as the fund’s target date approaches, the fund’s mix of stocks, bonds and other types of investments is adjusted to a more conservative mix.

8. What else should I know about lifecycle funds?As with all mutual funds, the principal value of a lifecycle fund isn’t guaranteed and will fluctuate with market changes. The target date indicates when investors may plan to start making withdrawals. However, you are not required to withdraw your money at the target date. After the target date, some of your money may be merged into a fund with a more stable asset allocation.1 A TIAA financial consultant can help you decide whether a lifecycle fund is right for you.

9. Can I move money from an existing annuity TIAA account to a new one?Yes, but it’s a move you’ll want to weigh carefully. You may move money out of your existing TIAA annuity contracts to the new contracts, subject to any restrictions that apply to the investments. However, any money that you move out of your existing contract(s) cannot be moved back into them. Money in the TIAA Traditional Annuity deserves special attention. For instance, money moved out of TIAA Traditional in the existing contracts will no longer receive the 3% minimum guaranteed rate. In short, the pros and cons are different for every participant. A TIAA financial consultant can help you explore your options.

10. What is the Equity Wash rule?In order to provide the performance, stability and liquidity attributes of a stable value option, participant transfers from stable value options are subject to an industry standard 90-day “Equity Wash” rule. The rule prohibits transfers from TIAA Stable Value directly to “Competing Funds.” Competing Funds are plan investment options that exhibit a pattern of performance consistent with stability and includes the TIAA Real Estate Account—for TIAA Stable Value ONLY.

Participants wishing to transfer amounts from TIAA Stable Value to Competing Funds must first transfer to Noncompeting Funds, where the amount originally transferred must remain for 90 days before the participant can then transfer the amount to one or more Competing Funds.

11. What if I am splitting my contributions among TIAA and Empower?Effective October 13, 2017, all future contributions will be directed to TIAA only and contributions will no longer be split.

12. What are annuities?There are different types of annuities but they are typically designed to give you the opportunity to grow your money while you’re working and provide you with the option to receive income for life when you retire. In fact, annuities are the only retirement products that can guarantee to pay you (or you and a spouse or partner) income for life.

There are two types of annuities:

Guaranteed Annuities (also known as Fixed Annuities): Earn a minimum guaranteed interest rate on your contributions, plus the potential for additional amounts of interest. In retirement, guaranteed annuities can offer you income for life that will never fall below a certain guaranteed level and provide income that is guaranteed to last for your lifetime.2

Variable Annuities: Invest in a variety of asset classes and account values will fluctuate based on the performance of the investments in the accounts. It is possible to lose money in variable annuities. In retirement, variable annuities can provide an income stream that is guaranteed to last for your lifetime, but the actual amount will rise or fall based on investment performance.

For more information on annuities in employer-sponsored retirement plans see: TIAA.org/public/offer/products/annuities/retirement-plan-annuities.

Q&A continued

1 Lifecycle funds share the risks associated with the types of securities held by each of the underlying funds in which they invest. In addition to the fees and expenses associated with the lifestyle funds, there is exposure to the fees and expenses associated with the underlying mutual funds.

2 Guarantees are based on the claims-paying ability of the issuing company. To learn more about annuities, visit: TIAA.org/public/offer/products/annuities/retirement-plan-annuities.

Questions? Call 800-842-2252 or visit TIAA.org/cranbrook 1313 Questions? Call 800-842-2252 or visit TIAA.org/<microsite>

About TIAAProviding strong support on the road to retirement no matter where you are todayTIAA’s purpose has remained constant since TIAA was established nearly 100 years ago: We’re here to help you save for—and generate income during—retirement. Over the years, we’ve regularly enhanced the ways we deliver on our purpose.

As an organization with deep roots among nonprofits—in higher education, government, hospital/medical, research, religious institutions, K-12—TIAA is committed to continuous learning. And when we see opportunities to enhance our retirement plan services, we share them with the institutions we serve.

1918 | TIAA Teachers Insurance and

Annuity Association of America created

Retirement Plan Portfolio Manager Program (the “Program”) is a discretionary fee-based asset allocation advisory program provided by the TIAA-CREF Trust Company, FSB (TIAA Trust). The TIAA-CREF Trust Company is an affiliate to TIAA-CREF Individual & Institutional Services, LLC (“Services, LLC”). The Program invests and manages Eligible Retirement Plan assets (“Retirement Assets”) on a discretionary basis. Retirement Assets are managed according to the advice provided by the Program’s independent financial service. The financial service is an unaffiliated registered investment adviser that has been retained to provide us with independent third-party investment recommendations for the Program. This material is for informational or educational purposes only and does not constitute a recommendation or investment advice in connection with a distribution, transfer or rollover, a purchase or sale of securities or other investment property, or the management of securities or other investments, including the development of an investment strategy or retention of an investment manager or advisor. This material does not take into account any specific objectives or circumstances of any particular investor, or suggest any specific course of action. Investment decisions should be made in consultation with an investor’s personal advisor based on the investor’s own objectives and circumstances.Distributions from 403(b) plans before age 59½, severance from employment, death or disability may be prohibited, limited and/or subject to substantial tax penalties. Different restrictions may apply to other types of plans.Investment, insurance and annuity products are not FDIC insured, are not bank guaranteed, are not bank deposits, are not insured by any federal government agency, are not a condition to any banking service or activity, and may lose value.You should consider the investment objectives, risks, charges and expenses carefully before investing. Please call 877-518-9161 or go to TIAA.org/cranbrook for current product and fund prospectuses that contain this and other information. Please read the prospectuses carefully before investing.TIAA-CREF Individual & Institutional Services, LLC, Teachers Personal Investors Services, Inc., and Nuveen Securities, LLC, Members FINRA and SIPC, distribute securities products. Annuity contracts and certificates are issued by Teachers Insurance and Annuity Association of America (TIAA) and College Retirement Equities Fund (CREF), New York, NY. Each is solely responsible for its own financial condition and contractual obligations.©2017 Teachers Insurance and Annuity Association of America-College Retirement Equities Fund, 730 Third Avenue, New York, NY 10017

MT 166752 742501-856000 (09/17)247865

We’re here to helpNot sure where to begin? Let us help you take the next step!

You can update your account online by going to TIAA.org/cranbrook and selecting Log In.

If you’re new to TIAA, select Log in, then click on Register for Online Access. Follow the on-screen directions to gain online access to your account.

If you have any questions or would like assistance selecting your new investment options, you can call TIAA at 800-842-2252, weekdays, 8 a.m. to 10 p.m. or Saturday, 9 a.m. to 6 p.m. (ET).

Phone Online

You can schedule a one-on-one advice session by calling TIAA at 800-732-8353, weekdays, 8 a.m. to 8 p.m. (ET) or visit TIAA.org/schedulenow. There is no additional cost to you for this service.

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