Stanford Report, December 8, 2011

New year, new names for Stanford retirement plans

The merger of Stanford's retirement plans will take place without any action required by participating employees. Employee contributions will continue to go into the same investment options they have selected. The merged plan will function the same as each separate plan does today.

Stanford currently provides two separate retirement savings plans that will merge into a single plan on Jan.  1, causing some minor name changes.  The merged plan is designed to improve employees' understanding of their retirement savings options and streamline plan administration.

This merger will take place without any action required by participating employees. Employee contributions will continue to go into the same investment options they have selected. The merged plan will function the same as each separate plan does today, with eligibility, enrollment requirements, "Basic" and "Match" contributions, and fund options unchanged. The only difference will be slight name changes.

Name changes

The merged plan will retain the Stanford Contributory Retirement Plan name, but will now have three "accounts:"

  • The Tax-Deferred Annuity Plan will become the Tax-Deferred Account (TDA).
  • The Stanford Contributory Retirement Plan will become the Contributory Retirement Account (CRA).
  • The Temporary-Casual Account (TCA), which was specifically created at the beginning of this year to comply with IRS regulations, will retain its name. It provides a benefit for temporary and casual employees who exceed 1,000 hours of employment in a year.

No Action Required

Stanford is legally required to inform all employees who are eligible to participate in any of the retirement savings plans, regardless of whether they actually participate, of any plan changes. As a result, all employees – even those who do not contribute to any retirement plan – will receive a package of additional information  around the middle of December. The package contains a letter of explanation, a newly revised Stanford Contributory Retirement Plan booklet (also called a Summary Plan Description, or SPD), and two legally required  financial statements. Again, the package is informational only and no action is required.

During the winter closure, employees can contact Fidelity, Stanford’s retirement plan administrator, to ask questions, enroll or make changes to their retirement account. TIAA-CREF also is available during the closure period for those who have an account. Contact information and hours of operation are available on the Stanford Benefits website  at http://benefits.stanford.edu.