Voluntary 403(b) Savings Plan Project

USF and the Division of Human Resources have taken steps to improve the retirement options for USF’s employees by embarking on a project to significantly enhance the Voluntary 403(b) Savings Plan to gain best in class investment options for plan participants. The project will strengthen its Voluntary 403(b) Savings Plan for the benefit of participants through vendor consolidation, improved communication, and technology enhancements.

The University engaged CAPTRUST, an external consultant, to assist with the comprehensive review of service providers, investment options, technology, and education opportunities for the future financial wellbeing of our participants. USF also formed a Retirement Plan Investment Committee that is charged to periodically review USF’s 403(b) plan and providers.

As part of the project, a Request for Proposal (RFP) process was initiated with all USF’s current vendors, and a thorough review and evaluation of the RFP responses was performed by CAPTRUST and the Committee. The University is happy to announce the process is complete.

Key enhancements to the Voluntary 403(b) Savings Plan that will be implemented in late February 2020 include:

  • Plan investments will be offered through a tiered, diversified menu of best-in-class investment options. These new investment menus will be available through two providers, Fidelity and TIAA.
  • The new investment options will be grouped into tiers: Target Date Funds, Passively Managed Funds, Actively Managed Funds and Self Directed brokerage account.
  • USF will introduce a single online web-based page for enrollments and changes, including resources that encompass tools and financial guidance.
  • A Roth option will be added, which will allow an employee to make voluntary 403(b) contributions on an after-tax basis.  A Self-Directed Brokerage option will be available to invest in any mutual fund not offered within the core investment menus of the two providers. 

What Will Not Change as Part of the Project

  • Eligibility and Overall Plan design
  • Contribution Limits

This project does not include the Retirement Plans managed by the State of Florida Division of Retirement:

  • State Retirement Plans or Providers (FRS Pension, Investment or SUSORP)
  • State 457 Deferred Compensation Plans or Providers

Next Steps

  • Review email communications from USF and Fidelity. Updates and information will be sent to your email address.
  • Prior to the effective date, current 403(b) participants will receive important communications and a Transition Guide to explain these enhancements in detail. The Transition Guide will also include information about the Town Hall meetings taking place on all USF campuses which will offer employees the opportunity to ask questions of Fidelity, TIAA and CAPTRUST representatives. 

USF is not alone in taking steps to improve our financial and compliance positioning, as many SUS and other universities have taken on this same effort. The Florida Department of Financial Services and Bureau of Deferred Compensation recently announced a reduction in the Investment Providers with the state’s Voluntary 457 Plan. Click here for additional information on those efforts. 

The Division of Human Resources, along with CAPTRUST, will keep you updated throughout this process.  As the project progresses, updates will be made to the DHR Retirement website, and webinars and town hall meetings will be held to communicate the forthcoming changes.  

Please check back often for updated information on this important project.