The University System of Georgia, Atlanta, will merge the individual 403(b) and 457(b) plans administered by each of its institutions into one 403(b) and 457(b) plan across the entire system, notices posted on USG's website said.
Effective May 1, the system — composed of 26 public institutions in the state, including the Georgia Institute of Technology, Georgia State University and the University of Georgia – — will make the enhancements, giving its Optional Retirement Plan, 403(b) and 457(b) plans "consistent investment options ... consistent provider options and a new fee structure," an FAQ on the upcoming changes said.
Fidelity, TIAA and VALIC will be the plan providers and were "selected based on performance and cost," as the new fee structure is expected to provide $7 million in savings to plan participants. As such, the system will be dropping investment providers Lincoln Financial Group, Primerica, MassMutual, AXA, Ameriprise, Peach State Reserves and USAA, the system's website said.
Under the new fee structure and enhanced transparency, administrative fees will be reduced across all providers. Fees also will be charged as a line item in plan participants' quarterly statements, starting July 1.
"The basic design of each retirement plan will not change at this time. Eligibility and immediate vesting will remain the same," USG's website said.
More information on the changes can be found in an announcement and a separate FAQ posted on the system's website.
The size of the plans could not be learned immediately. A spokeswoman for the system could not immediately provide additional information.