DC vs. DB Video TIAA Version

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Congratulations. You're now part of a great institution,

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and that means you've got a lot of great benefits to take advantage of,

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including a choice of retirement benefits.

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This video will explain the difference between your two options

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the defined benefit plan and the defined contribution plan.

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As a new

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employee, you may have a limited time to choose which plan you want.

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If you don't choose by the deadline, you'll be automatically enrolled in the defined benefit plan,

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and most of the time, that means you can never switch to the defined contribution plan.

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That's why it's important to understand what you're getting.

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Both plans are a great way to save for retirement,

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but they do have differences.

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Only you can decide which one is best for you.

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With the defined benefit plan, you'll get a fixed amount of income when you retire based on the number of years you've worked and how much you've earned.

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This gives you predictable, secure income for life once you retire.

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Some of the contributions to the plan may be made by your employer and the rest will come from you.

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All the investment choices are made for you,

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and investment returns don't affect the amount you get in retirement.

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While the defined benefit plan may be a good option, there is an important thing to consider.

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You may have to remain with your employer for a certain number of years before any employer contributions become vested or owned by you.

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So if you leave your job before that time, you won't receive any of the contributions made by your employer.

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That might add up to a lot of money.

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With a defined contribution plan. The amount of money you get when you retire will depend on how much has been contributed to the plan over the years,

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the performance of your investments,

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and the income options you choose at retirement.

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Like the defined benefit plan, your employer may also contribute to your plan.

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If you decide to leave your job at any time, all of your contributions are yours to keep,

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as well as any vested contributions made by your employer.

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With a defined contribution plan, you can choose your own investments to reflect your lifestyle and goals,

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including fixed or variable annuity options

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that can supply guarantee lifetime income. With flexible payout options.

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You may have a choice of providers for these retirement plans, including TIAA.

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TIAA has been providing retirement benefits not for profits, for over 100 years,

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and offers one on one advice and education at no additional cost.

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If you have other provider options, they may offer different benefits you should consider.

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While you may just be starting a new job,

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someday you'll be retiring too,

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so choose the plan that's right for you.

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Remember, you have a limited time to make your choice.

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If you need help deciding between the defined benefit plan and the defined contribution plan,

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contact your benefits representative

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or call a Tia Financial Consultant at (800) 842-2252.

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You should consider the investment objectives, risks, charges and expenses carefully before investing. Please call (877) 518-9161 or log on to tiaa.org for current product information and prospectuses that contain this and other information. Please read the prospectus carefully before investing.