For employees holding a 457(b) Schwab Brokerage Account, please read and click on appropriate PDFs
PLEASE NOTE: THE DEADLINE HAS BEEN EXTENDED TO JANUARY 13, 2012.
Dear Participant,
Effective February 1, 2012, the Los Angeles Unified School District (LAUSD) has selected CalSTRS as the new Plan Provider for the LAUSD 457(b) Deferred Compensation Plan. CalSTRS will be replacing VALIC. As a participant of the 457(b) Deferred Compensation Plan, you have a Schwab PCRA Brokerage Account with VALIC for some or all of your retirement investments. The Schwab PCRA is available through a record keeping arrangement between LAUSD and VALIC.
CalSTRS has an agreement with TIAA-CREF to act as the record keeper and investment provider for the LAUSD 457(b) Deferred Compensation Plan. Due to this provider change, if you wish your current mutual funds to remain in a mutual fund window, you will need to transfer those assets to the TIAA-CREF Brokerage Services (TCBS) account. If TCBS does not receive your completed account application and transfer form, LAUSD will instruct VALIC to sell your current holdings and transfer the sale proceeds to the new default account for the LAUSD 457(b) Deferred Compensation Plan, the TIAA Traditional Annuity RCP.
Please be sure to complete, sign and return the enclosed TCBS Account Application and the TCBS Customer Account Transfer Form by December 23, 2011 (extended to January 13, 2012).
You will be receiving additional information about the selection of CalSTRS as the new Plan Provider in the coming weeks and your payroll contributions will continue to be withheld.
The information enclosed is required to initiate the transfer of your current mutual funds in your existing brokerage account to TCBS. Please pay special attention to the “Important Dates” section below as it contains critical deadlines.
Important Dates
December 23, 2011 (extended to January 13, 2012) – Deadline to return TCBS Account Application and TCBS Customer Transfer Form. Use the postage-paid return envelope to return the completed and signed documents prior to December 23, 2011. Once enrolled, you will receive instructions on how to access your account online.
December 30, 2011– If TCBS has not received your completed Account Application and Transfer Form, LAUSD will instruct VALIC to sell your current holdings and transfer the sale proceeds to the new default account for the LAUSD 457(b) Deferred Compensation Plan, the TIAA Traditional Annuity RCP.
January 24, 2012, 1:00 p.m. (PST)– The Plan Blackout Period begins. TIAA-CREF will initiate the transfer process of your brokerage assets. During the Blackout Period, you will be unable to perform any activity to your account. The blackout period is scheduled to end by February 14, 2012.
Please read and keep for your records the following documents:
- TCBS Customer Account Agreement
- TIAA-CREF Privacy Statement
- TIAA-CREF Business Continuity
- Summary Prospectus or the Federated Prime Cash Series Fund
Enclosed in this package you will find:
- TCBS Account Application
- TCBS Customer Account Transfer Form
- TCBS Customer Account Agreement
- Summary Prospectus for the Federated Prime Cash Series Fund
- TIAA-CREF Privacy Policy
- TIAA-CREF Business Continuity
If you have questions about establishing your brokerage account, please contact a TIAA-CREF consultant at 800-927-3059, Monday through Friday, 5 a.m. to 4 p.m. (PST). Select Option 1 for brokerage account and then Option 3 to “start investing with TIAA-CREF and all other questions.” You will be prompted to enter your Social Security number, but do not enter your number at that time. After a slight delay, the system will then transfer you to a consultant.
Thank you for your prompt response to completing and returning the enclosed account application and transfer form.
Sincerely,
Benefits Administration
Please read the prospectus and consider the investment objectives, risks, charges and expenses carefully before investing.
Links:
Retirement_Plan_Self-Directed_Brokerage_Account_Application_09
Pension_SDA_CAA_A12134_Final June 11
