VIP Moves to CalSTRS Pension2SM

The CalSTRS Voluntary Investment Program (VIP) is transitioning to the CalSTRS Pension2SM personal wealth plan. This change will provide CalSTRS members with more choices and better services for their supplemental investment funds.

In its new role with CalSTRS, TIAA-CREF will administer supplemental investment funds using a new state-of-the-art recordkeeping system designed to put leading-edge technology and investment resources to work for investors. TIAA-CREF has been helping millions of people in the academic, medical and cultural fields prepare for retirement for nearly 90 years.

CalSTRS Pension2SM features include:

• New investment choices and mutual fund providers available through one source
• Objective advice and planning services
• Special CalSTRS Easy Choice Portfolios, tailored to members’ future plans and risk tolerance
• Educational tools, retirement planning calculators, topic specific web-based seminars
• A dedicated Web site for school employees, county offices of education and community college districts

CitiStreet is scheduled to move the VIP plan, employee information, and account information to the TIAA-CREF system on November 1, 2007.

Although the actual movement of funds occurs November 1, there is a required blackout period that runs from October 25 through November 12, 2007. Please see Important Notice Regarding Your Rights for details. After November 12, 2007, investments will be available through CalSTRS Pension2SM.

More Information

For questions, call the toll-free CalSTRS Pension2 information line at TIAA-CREF at 888-556-2950, Monday through Friday, 5 a.m. to 7 p.m. or Saturday, 6 a.m. to 3 p.m. (PT), or contact CalSTRS Active Financial Choices at 888-394-2060.

• Request For Information
• 403(b) Investing Checklist

Next Steps for Current VIP Participants

On November 1, 2007, all VIP accounts will automatically be enrolled in the new CalSTRS Pension2SM administered by TIAA-CREF. Your contributions and accumulations will be transferred under the new contract. You will have the opportunity to change your allocations and your investment options using the new choices after the close of the transition period.

Once the new contracts are issued you will receive the following:

• A welcome package from CalSTRS Pension2SM and TIAA-CREF
• Your contract
• A special beneficiary designation letter, which will contain important information about your beneficiary designation default (estate) and a beneficiary designation form you will need to complete and return to TIAA-CREF.

New Investment Choices

CalSTRS Pension2SM will feature some of the existing investment funds plus several new investment options. Select from 10 investment choices from well-known mutual fund families, such as Vanguard, TIAA-CREF, DFA, and Dodge & Cox. CalSTRS has developed easy choice portfolios and asset allocation models to coincide with each investor’s risk tolerance and future plans.

Investing in a 403(b) will never be easier: simply choose CalSTRS Pension2SM, pick the target date portfolio closest to your retirement date, and then decide if you are a conservative, moderate, or aggressive investor.