Indianapolis Public Schools is making a change to its current employee investment program by moving from a multi-company to a single company mutual fund platform for its Tax-Sheltered Annuity (TSA) and Roth 403(b) plan.

The change is effective July 1, 2019.

Tax-Sheltered Annuity (TSA) and Roth 403(b) Enhancement FAQs

Why is IPS making this change?

  • Reducing the number of vendors to one company offers employees a more streamlined investment program and a uniform education platform. One vendor also allows for less confusion, increased participation, and encourages employees to start saving for retirement.
  • The new plan’s services and investment lineup will reduce an employee’s annual participant expenses by offering flexibility to access their retirement plan without additional costs at retirement. Lowering investment costs keeps more money in the employee’s accounts and strengthens fee structure and investment choices.
  • A one-vendor mutual fund platform allows employees to invest by pooling money with the money of other investors and investing it in a portfolio of other assets (e.g., stocks, bonds). This means employees will be able to invest in portfolios that wouldn’t be affordable alone but are made affordable by investing alongside other investors.
  • Mutual funds alleviate some of the risks that come with individual stock investments. Allowing employees to pick one fund, which contains different stocks, alleviates the worry of “putting too many eggs in one basket.” This makes mutual funds an easier way to make a diversified investment.

What company will provide the new investment platform?

  • AIG-VALIC will be the only IPS TSA and Roth payroll-approved vendor available.

Will there be informational/educational sessions I can attend?

  • AIG-VALIC will have several employee education sessions and webinars planned during July and August to provide an overview of the new mutual fund platform.
  • The company will also visit each district location to allow any employee to select their investment and establish beneficiaries.

When can I enroll?

  • New enrollment begins June 1, 2019.
  • AIG-VALIC will schedule times to come out and visit all district locations. Emails with more enrollment information will be sent soon.
  • If an employee currently makes contributions to AIG-VALIC, those contributions will continue and no action is needed.

When will this change occur?

  • It will be included in the August 16, 2019, pay; the first pay of the 2019-2020 school year.

What is the last pay date a deduction will be taken for a vendor other than AIG-VALIC?

  • The last pay date will be August 2, 2019. After this date, no additional contributions will be taken via payroll deduction.

Do I have to participate in the TSA and Roth Program?

  • While financial investments are a personal decision and investing in a 403(bplan can be a good advantage to save for retirement on a pretax basis, it is not mandatory that employees participate.

What happens to my current deduction for another vendor?

  • It will no longer be an option to contribute to prior vendors via IPS payroll and contributions will stop.
  • Funds in these accounts will remain intact unless the employee chooses to move them.
  • There is no specific window for an employee to move funds. It is at the employee’s discretion when and what to do, if anything, with their financial accounts. Employees will need to contact their financial advisors to discuss options.
  • An employee’s current deduction amount to another vendor will automatically transition to the AIG-VALIC mutual fund program. If this is NOT an employee’s preference, they must fill out a Salary Reduction Agreement (SRA) form requesting the deduction be canceled by August 2, 2019.
  • The Salary Reduction Agreement Form can be obtained here.

What happens if I currently have a VALIC account and do not meet with a AIG-VALIC advisor?

  • The current account will automatically be established with a default to a Target Date Fund, which is appropriated by age.

What happens if I do not want my current deduction amount with a prior vendor to go to AIG-VALIC?

  • Complete the SRA form provided and cancel your current deduction.
  • If an employee does not cancel their deduction to their former TSA company via an SRA, the current account will automatically be established with AIG-VALIC as a default to a Target Date Fund, which is appropriated by age.
  • The Salary Reduction Agreement Form can be obtained here.

How can I make changes to my current deduction amount?

Will IPS continue to match my contribution?

  • Yes. IPS will continue to supplementary match up to $105/$175 per year.

Where can I find more information and forms?

  • Additional information will be emailed and also posted on the IPS Benefits website under TSA & Roth 403b.

Any questions concerning the plan change should be directed to BenefitsDept@myips.org.