Cash Match

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Cash Match
October 13, 2004
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Cash Match

• Enacted in Legislation in 1999
• VCU matches 50 up to a maximum of 20 each pay
  period of contribution to
• Tax-Deferred Annuity (TDA) Program or
• Deferred Compensation Plan
• State dollars VCU has fiduciary responsibility

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Background

• June 2003 Investment Committee developed an
  Investment Policy Statement
• Guidelines and objectives for use in managing
  plans asset classes
• Covers ORP and Cash Match
• November 2003 Board of Visitors approved
  Investment Policy Statement and vendor/fund
  offerings

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Cash Match- Evaluation

• VCU Investment Committee and Palmer Cay
  Consulting evaluation included
• Review of entire investment platform, by vendor
• Focus on
• Style
• Performance to benchmark peers
• Volatility
• Expenses

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Cash Match- Evaluation

• Investment options need to
• Cover the risk/return spectrum
• Provide exposure to all sectors of the market
• Complement each other to allow for creation of
  diversified portfolios
• Consistent with the ORP Investment Policy
  Statement

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Approved Vendors

• Fidelity and TIAA-CREF
• Provide the best combination of
• Investment options
• Fees
• Communications
• Services

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Approved Funds
Funds available in the following asset classes

• Large Value
• Domestic Index
• Large Growth
• Aggressive Value
• Aggressive Growth
• Global
• International Equity

• Fixed Account
• Money Market
• Core Bond
• Asset Allocation (only Fidelity)
• Real Estate
• Treasury Inflation Protected Securities

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Whats Changing?

• VALIC is no longer an approved Cash Match vendor
• Approved funds for Cash Match with Fidelity and
  TIAA-CREF have changed

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Whats staying the same?

• Participants with Cash Match through DCP can
  continue to have Great West as Cash Match vendor
• Participants may continue to invest in TDA with
  no changes
• Keep VALIC as TDA vendor
• Keep same funds with Fidelity and TIAA-CREF

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VALIC Participants

• May keep VALIC as TDA vendor
• Must change Cash Match vendor to
• Fidelity or
• TIAA-CREF
• If they do not make an election by October 29,
  their Cash Match enrollment will default to
  Fidelity

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What happens to current investments?

• Participants can leave their money in their
  current investments
• Will need to complete a fiduciary acknowledgement
  form by October 29
• Participants can roll their money into their new
  accounts
• All Cash Match contributions after November 9
  will be invested in the approved funds and vendors

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Participants in non-approved funds

• Participants in non-approved funds with Fidelity
  or TIAA-CREF must select new allocations for
  future contributions by October 29, or they will
  default as follows
• In Fidelity to appropriate Freedom Fund
• In TIAA-CREF to Money Market Account

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What has to be done?

• October 1-29 Open Enrollment
• If VALIC for Cash Match change CM vendor
• If in non-approved funds for Cash Match change
  allocations
• Can leave old money in non-approved vendor or
  fund and do a fiduciary acknowledgement form
• Can roll old money into approved vendor or fund

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Questions about Cash Match

• www.hr.vcu.edu/benefits/CashMatch.htm
• Benefits_at_vcu.edu