As a result of the University’s periodic review of retirement plan investments, we are pleased to announce the following changes to our investment line-up for University contributions to the Faculty Retirement Plan, the Medical Center Retirement Plan, and the Cash Match Plan:

• Two new funds will be added to the Vanguard line-up:  In addition to the current funds available from Vanguard, participants will be able to invest in the Vanguard Small Cap Value Index and the Vanguard Developed Markets Index.  These funds are available today.
   
• The Fidelity fund line-up will change:  Two new funds will be available to Fidelity Investors, the American Century Large Company Value fund and the American Beacon Small Cap Value Plan fund.  The Fidelity Growth and Income fund and the Janus Mid Cap Value fund will no longer be available.  These changes will take effect October 1.
  
  If you currently have retirement contributions invested in one of the two funds to be deleted, we urge you to contact Fidelity as soon as possible after October 1 to reallocate your contributions among the new funds offered.  In order to make changes prior to your next retirement plan contribution date,  we recommend that you contact Fidelity by:
   
• Oct 14 - if you are an Academic Division employee paid on a semi-monthly basis
• Oct 14 - if you are a Medical Center employee
• Oct 31 - if you are an Academic Division employee paid on a monthly basis

If you do not contact Fidelity by the applicable date, ANY FUTURE CONTRIBUTIONS THAT YOU HAVE ALLOCATED TO AN ELIMINATED FUND WILL BE INVESTED INSTEAD IN A FIDELITY FREEDOM FUND, BASED ON YOUR DATE OF BIRTH, as described below.  Please keep in mind that you may, at any time, change which funds you use and redirect existing funds to one of the other available choices.

Although you may maintain existing investments in funds that will be eliminated, please be advised that you do so at your own risk.  The University takes no responsibility for the investment performance of any fund offered by the Plans, particularly an eliminated fund.

• The TIAA-CREF line-up will remain the same:  The University is exploring with TIAA-CREF the possibility of adding some mutual funds to the current annuity fund lineup in the near future.

This is an excellent opportunity to review your retirement portfolio, to determine whether your investment allocations reflect your goals, your time horizon, and your level of risk tolerance.  Ideal portfolios can become outdated as investment returns increase your exposure to certain types of investments, as changes to your personal financial situation make an impact on your planning, or as your retirement draws nearer.    Take advantage of the expertise our vendors can provide by scheduling a one-on-one session here at the University or by calling their telephone service centers.  All three vendors have sophisticated planning tools available on their web sites or through their representatives, and they are waiting to assist you.

These changes will not apply to money you have deducted from your salary for the Tax Deferred Savings Program (403(b)).  You will continue to have access to the full range of options offered by each of these three vendors.  If you have questions about the upcoming plan changes, please contact the UHR Office of Employee Benefits at 924-4392 or benefits@virginia.edu. 

QUESTIONS AND ANSWERS ABOUT THE RETIREMENT PLAN
INVESTMENT SELECTIONS

 How do I change my investments with my current vendor?
You must contact the vendor directly to reallocate contributions among the funds offered.

What happens if I am currently investing in an eliminated fund?
If you are currently investing in an eliminated fund, and you do not redirect your investments prior to October 14 or 31 (depending on your next pay date as described above), your new contributions will be invested in a Fidelity Freedom Fund based on your date of birth:

1/1/1900 – 12/31/1932 Fidelity Freedom Income Fund®

1/1/1933 – 12/31/1937 Fidelity Freedom 2000 Fund®

1/1/1938 – 12/31/1942 Fidelity Freedom 2005 Fund®

1/1/1943 – 12/31/1947 Fidelity Freedom 2010 Fund®

1/1/1948 – 12/31/1952 Fidelity Freedom 2015 Fund®

1/1/1953 – 12/31/1957 Fidelity Freedom 2020 Fund®

1/1/1958 – 12/31/1962 Fidelity Freedom 2025 Fund®

1/1/1963 – 12/31/1967 Fidelity Freedom 2030 Fund®

1/1/1968 – 12/31/1972 Fidelity Freedom 2035 Fund®

1/1/1973 – Current Fidelity Freedom 2040 Fund®

The money that you have already invested in the eliminated fund will be permitted to remain there, but your continued investment is undertaken at your own risk.

Can I invest with more than one vendor?
You may identify only one vendor for each plan in which you participate.  However, you may use a different vendor for each plan.  For example, if you participate in the Medical Center Retirement Plan and the Cash Match Plan, you could choose TIAA-CREF for the Medical Center Retirement Plan and Fidelity for the Cash Match Plan.

How do I enroll with a new vendor?
To change your retirement vendor, contact the UHR Benefits Division for the forms you need.  All completed forms must be returned to the UHR Benefits Division, NOT sent directly to the vendor.

Do these changes affect the money I invest through salary deferral?
No, you will continue to have access to the vendors’ full family of funds through the Tax Deferred Savings Program (403(b)).

Why can’t I invest the University’s retirement contributions in anything I want?Even though you are permitted to direct the investment of the retirement contributions the University makes on your behalf, the University is legally required to identify a diverse range of funds that it has determined are appropriate for your retirement investments.