Retirement Legacy Accounts - Human Resources at Ohio State

Retirement Legacy Accounts

Legacy vs. Ongoing Accounts

A legacy account is one that is held with a terminated provider (see below) or in a legacy investment with an approved provider that was funded prior to January 1, 2021.

An ongoing account is one that is administered only through an approved provider.

If you contributed to the Ohio State retirement plans prior to January 1, 2021, you may have a legacy account(s). An account is considered a legacy account if it is held with a terminated provider or in a legacy investment with an approved provider.

Even though you can no longer contribute to a legacy provider, you should periodically review the performance and costs of the investments available in your legacy account(s) to ensure that you are meeting your retirement savings goals.

On this page…

Legacy Providers

Below is a list of the legacy providers by plan. [See contact information for each provider]

Legacy Providers by Plan
ARP 403(b) Plan 457(b) Plan
  • Equitable
  • Great American
  • Lincoln National Life Insurance
  • Nationwide “Best of America”
  • The Hartford
  • Ameriprise Financial
  • Aspire Financial
  • Equitable
  • Lincoln National Life Insurance
  • Metropolitan Life Insurance
  • Nationwide
  • The Legend Group
  • T. Rowe Price
  • Corebridge Financial (formerly AIG Retirement Services)*
  • Lincoln National Life Ins.
  • VOYA Financial Advisors*
*Corebridge Financial and Voya are still approved ARP and 403(b) providers.

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Your Options

Active and former employees have several choices for managing legacy account balance(s). You may want to contact a financial advisor of your choosing to help evaluate the best approach for you.

1

Maintain your account balance with your legacy provider and/or legacy investment lineup.

You are not required to move your account balance, however as of January 1, 2021, no new contributions (including transfers and rollovers) can be moved into these legacy options. See below section on fees to understand the differences between the legacy and the investment options after January 1, 2021.
2

Transfer your account balance to an approved provider and/or the tiered investment lineup.

You may move or consolidate your account balance(s) by transferring them to an approved provider and/or into the tiered investment lineup.  To determine if this action is right for you, there several key considerations including – ongoing oversight, investments, and fees.

It’s important to understand how fees (i.e., total expense ratio) impact your retirement savings and account growth.  Talk to your provider to discuss fees that you paying for your account and if any charges for moving your account.

To initiate a transfer, call your selected approved provider and ask for a transfer request. The provider will help coordinate the request to transfer funds.

3

Convert your pretax 403(b)/457(b) balance to a Roth 403(b)/457(b).

Pretax account balances with legacy providers can be converted to a Roth (after-tax) 403(b)/457(b) by completing an in-plan Roth conversion. The account balance must be held with an approved provider. If you have a legacy account balance, you will first need to transfer all or a portion of your balance to an approved provider and then begin the process. See more information on Roth options.
4

Take a distribution or rollover your account balance to another employer’s plan or eligible retirement account.

This option is available for former employees and active employees in the 403(b) plan age age 59 1/2 or older. If you decide to move your account balance outside of the Ohio State plans, there are a few helpful pointers to consider. Before starting the process, contact your provider to discuss your account and if there are any associated fees with moving or distributing your account.

To initiate a rollover (moving money outside of the plan), call your legacy provider(s) and request the applicable paperwork to move your account balance. See Distributions, Loans & Hardships for more information.

To initiate a distribution, call your legacy provider(s) and request a distribution from your account(s), or go online and complete the necessary paperwork. See Distributions, Loans & Hardships for more information.

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Comparing Legacy and Ongoing Accounts

Enhancements have been made to the retirement plans to give you a better overall participant experience.  Consider the differences – ongoing oversight, investment options and account fees.

In general:

  • The funds in the legacy accounts may have a higher total expense ratio, which requires a higher positive return to overcome the higher fees.
  • Funds in the current investment lineup exclude many of the fees contained within a legacy account.
  • Most participants would benefit from a flat dollar record-keeping fee verses the legacy approach where the total expense ratio for each investment is applied as a percentage on the account balance.
  • Participants may transfer all or any portion of their legacy balance to the current investment lineup at any time, unless limited by your investment(s).
  • The university negotiates to keep ongoing account costs low.

Ohio State’s Retirement Oversight Committee (ROC), comprised of leaders from the university and Wexner Medical Center, regularly monitors the investments offered in Tiers 1 and 2 of the investment lineup and regularly makes recommendations to the chief human resources officer on administrative and investment decisions. The ROC does not have similar oversight of investments with legacy providers (see additional details on investments).

The university has ongoing service level agreements with approved providers to ensure compliance and support for participating employees. While legacy providers are held to compliance standards, they are not held to any specific service level guarantees.

Prior to January 1, 2021, the legacy investment menu consisted of any investment the provider offered for each plan. These investments may have higher costs associated with them.

The investment lineup (after January 1, 2021) offers lower administrative fees for most employees and access to lower cost, institutional share class investment options in Tiers 1 and 2. Learn more about the investments available in all tiers.

The university has taken steps to help reduce the fees on the retirement accounts and investments that you pay on contributions after January 1, 2021.

Fee Calculation Types
  • Percentage-based fees, such as the total expense ratio, are applied as a percentage of your account balance. The higher the total expense ratio, the higher your fees.
  • Flat Dollar fees are fixed dollar amounts. Flat fees remain static and do not increase as your account balance grows.

Understand the differences you are paying between your legacy and current account:

Fee Comparison Chart
Legacy
(prior to 1/1/21)
Tiers 1 & 2
(1/1/21 and after)
Tier 3
(1/1/21 and after)
Total Expense Ratio may include, but is not limited to:

  • Investment Management Fee1
  • Record-keeping Fee2
  • Mortality and Expense (M&E) Charge2
  • Separate Account Fee2
Total Expense Ratio includes:

  • Investment Management Fee1

The size and scale of the university’s plan assets is used to access lower total expense ratios (share class) investment options.

Total Expense Ratio includes:

  • Investment Management Fee1

Similar to legacy accounts, your access to lower cost total expense ratios depends on the value of your account balance.

Record-keeping Fee2 is paid as a percentage of your account balance and is included in the total expense ratio above. Record-keeping Fee2 is paid quarterly to your provider as a flat dollar amount.
Transaction Fees charged by your provider for participant directed activities which may include, but is not limited to:

  • Withdrawals
  • Hardships
  • Qualified Domestic Relations Orders (QDRO)
Negotiated Transaction Fees charged by your provider for participant directed activities which may include, but is not limited to:

  • Withdrawals
  • Hardships
  • Qualified Domestic Relations Orders (QDRO)

Additional fees for a self-directed brokerage account (applies only to Tier 3) may apply as determined by the provider and investment manager.

1Compensates the investment manager
2Uses revenue sharing to compensate the provider

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Evaluate Your Expense Ratios

Legacy Accounts

See the total expense ratios for legacy investments for each provider.

For legacy providers not listed below, please contact the provider directly.

Ongoing Accounts

See the total expense ratios for ongoing accounts by Tier.

Consult with your financial adviser
NOTE: Consolidating your legacy accounts and withdrawing funds from a retirement account should be considered carefully. This is a personal decision based on your individual scenario, retirement investments/provider and your timeline for retirement. Consult with your financial adviser for guidance specific to you.

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