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University of Nebraska Plan Overviews

When planning your retirement investment, it's important to understand the difference between the various plan options. The University of Nebraska offers three retirement plans for faculty and employees. Each plan has its own features, requirements, and eligibility.

Below are the three plans offered by the University, an Overview and the feature that sets each plan apart.

Tier 1

3.5% Employee/6.5% Match

Tier 2

5.5% Employee/8.0% Match

The Unversity offers a ROTH option for employees. The money the employee contributes is "after tax" and grows "tax free". There is no employer match.

Participation allowed in 457(b) Deferred Compensation Plan as long as they have “elected to defer” the maximum in the other plans which is $20,500 for employees under 50 and $27,000 for those over 50.

University of Nebraska System's 2022 Retirement Plan Enhancements

RECORDKEEPING FEE - (Not a big deal!)

The University is being transparent about what the plan participant's cost is. Fidelity has an annual cost of $29 and TIAA is $38 regardless of how many accounts you have. If you have balances with both then your annual cost will be $67 ($29+$38). Pick the recordkeeper that offers the best services and features. Do not worry that TIAA is $9 more than Fidelity. That is the cost of two lattes. Choose one to keep your life simple.



Two Lattes



Recordkeeping fee pays for:

  • On-campus retirement reps from TIAA/Fidelity

  • Core Administrative Services

      • Enrollments

      • Website and Participant portals

      • Distributions

      • Phone Support

      • Investments(buy/sell, custody)

      • Investment advice and education

      • Website and Participant portals

      • Statements and tax documents

The Fiduciary Advisors of will not receive any reimbursement from the University of Nebraska, TIAA, or Fidelity for the education, meetings, webinars, investment planning, etc. that they provide.


You can decide to move your balances from one recordkeeper (Fidelity or TIAA) to the other (except the TIAA Traditional Annuity). It will require some paperwork and time. Work with an advisor to make this happen.


An employee can make the decision not to invest in the Vanguard Targeted Date funds and instead invest into the various Vanguard Core funds which can be seen below.


Some bigger changes here....Moving from a 9 year withdrawal to a 7 year withdrawal period and reducing the minimum rate from 3% to 1%. The bigger decision is do you really need to select the annuity option? Participants need to have a good understanding of how the TIAA Traditional Annuity works with investment returns and distributions. Typically payroll contributions that go into the TIAA Traditional Annuity cannot be transferred out. The participant will need to retire to set up a distribution (10yrs or 7 yrs) from the TIAA Annuity. So, if your Annuity balance is $252,000 when you retire, you will be able to only withdraw $28,000 or $36,000 on an annual basis not the entire amount.

Balances currently in the EXISTING TIAA Traditional Annuity will remain there and all new contributions will go toward the NEW TIAA Traditional Annuity after November 1, 2022. The differences are below:

Existing TIAA Traditional Annuity

9 year withdrawal period

3% minimum crediting rate guarantee

Current crediting rate is 3.25%

NEW TIAA Traditional Annuity

7 year withdrawal period

1% minimum crediting rate guarantee

Current crediting rate is 3.50%





TIAA/CREF Variable Annuities


If a University employee is utilizing Fidelity's 403(b) the current balances in Fidelity funds will not be mapped to the Vanguard Target Funds. Employees will be able to continue to transfer between the Fidelity funds. New contributions to the the 403(b) will be directed into the Vanguard Target Dated funds. Employees can transfer money from the old 403(b) account to the new 403(b) account only. Not the other way.

TIAA/CREF Variable Annuities

Existing balances in TIAA/CREF Variable Annuites will not be mapped to Vanguard Funds including:

  • CREF Bond Market

  • CREF Equity Index

  • CREF Global Equities

  • CREF Growth

  • CREF Inflation-Linked Bond

  • CREF Money Market

  • CREF Social Choices

  • CREF Stock

  • TIAA Real Estate

  • TIAA Traditional

Roth In-Plan Conversion

New for 2022 - Employees will be able to do a Roth In-Plan conversion. Meaning you have the opportunity to convert pretax assets such as those currently in the 403(b)plan or rolled-over from a former employer’s plan into a designated Roth account. You definitely want to understand the tax implications before you do this.

If you would like to see how Retirement Ready you are, complete our easy quiz and receive our report - The Prius of Retirement Investments