News

Tax-deferred Annuity (TDA) / 403(b) changes for calendar year 2024

TDA

In order to implement process improvements and to comply with recent SECURE Act 2.0 changes, the Â鶹´«Ã½ Human Resources (Â鶹´«Ã½ HR) is updating the Tax-deferred Annuity (TDA) vendor list.

As of January 1, 2024, Â鶹´«Ã½ will no longer support TDA payroll deductions to the following vendors:

  1. AXA Equitable
  2. Horace Mann
  3. Invesco (formerly Oppenheimer)
  4. PFS Investments
  5. Templeton
  6. T. Rowe Price
  7. Fiduciary Trust Company (formerly Waddell & Reed and Ivy Investments)

Â鶹´«Ã½ HR will maintain TDAs with TIAA, Fidelity, Lincoln, and Corebridge (formerly VALIC/AIG). Â鶹´«Ã½ HR will also temporarily maintain TDAs with American Funds, Vanguard, and VOYA (Northern Life/ING). Due to low participation in American Funds, Vanguard, and VOYA (Northern Life/ING), these vendors will be reviewed again in the new calendar year.  

Why are we changing?

  • Low Participation
    Each of the seven (7) vendors has historically low participation. Over the last 5 years, all seven (7) of these vendors maintained only 20 employee accounts or less.
  • Process Improvement
    This change allows Â鶹´«Ã½ HR to increase efficiency and provide cost savings by reducing the number of vendors in which Â鶹´«Ã½ HR prepares, sends, and reconciles biweekly payments.

How does this affect me?

    • Universal Availability
      All Â鶹´«Ã½ employees - including temporary and student employees - are eligible to participate in a TDA. Specific communications have (and will continue to be) sent to Â鶹´«Ã½ employees who are contributing to a TDA vendor that is no longer being supported.

  • Employees who currently participate in a TDA with one of the affected vendors
    If you are currently participating in a TDA with one of the vendors, your will automatically be stopped on December 16th, 2023. This will be paid out to the vendor on your December 29, 2023 paycheck - the final paycheck of 2023. No further payroll deductions will be taken and sent to the vendor. Direct communication will be sent to these employees with next steps.

  • Employees who are not affected
    If you currently have an open TDA with TIAA, Fidelity, Lincoln, Corebridge (formerly VALIC/AIG), American Funds, Vanguard, or VOYA (Northern Life/ING), you do not need to take any action at this time. You may update your current biweekly deduction amount and/or yearly goal amount at any time.
  • Questions
    Please reach out to us at (907) 450-8242, email us at ua-benefits@alaska.edu, or set up an appointment.

Emailed via benefits newsletter on 11/28/23, 12/5/23, 12/12/23. Individual emails sent to affected employees on 11/1/23, 12/12/23.
Contact Benefits:  (907) 450-8242  | ua-benefits@alaska.edu | schedule one-on-one time