RIT Retirement Plan Simplification FAQs

If you do not find the answer to a question you have:

  • To Submit a New Question, please fill out this form; or
  • Call the Benefits Hot Line at (585) 475-5016/v and leave your detailed question as well as your name and contact information.
FAQs: 

How do I change the percentage of my pay that I contribute to the retirement plan? (added 12/21/2011)

Complete the Before Tax Salary Reduction Agreement, which you can find on the HR website in the Retirement Benefits section, indicating the new percentage of pay you wish to contribute. Submit this form to your Benefits Representative in Human Resources. Your new contribution rate will be effective the first payroll period administratively possible following receipt of the agreement in the Human Resources Department.

How often may I change my contribution percentage? (added 12/21/2011)

You can change your contribution percent at any time.

If I currently have only a TIAA-CREF account and after the transition I have a Fidelity account, will my beneficiary information automatically transfer to Fidelity? (added 12/21/2011)

No, you will need to complete a beneficiary form for your Fidelity account. Instructions will be provided in our next mailing in January.

How do I view and update my beneficiary information? (added 12/21/2011)

 

See the information below for Fidelity and TIAA-CREF:

Fidelity: 
For Fidelity, you cannot view or change your beneficiaries online; to learn what your current designation is, you can call Fidelity at (800) 343-0860/v and (800) 259-9734/TTY. For your convenience, you will find the Fidelity beneficiary designation form online athttps://401k.fidelity.com/static/dcl/shared/documents/WPS_PublicSite/Documents/403b_BeneficiaryDesignation_427490.pdf.

TIAA-CREF: 
You can view and update your beneficiary information after you log into the secure website at www.tiaa-cref.org. For questions or to request a beneficiary designation form, you can call TIAA-CREF at (877) 209-3144/v and (800) 842-2755/TTY.

I prefer not to receive all this paper. How do I change my preferences so I can receive statements , prospectuses and other plan information electronically? (added 12/21/2011)

See the information below for Fidelity and TIAA-CREF electronic delivery:

Fidelity:

  1. Log on to Fidelity NetBenefits: www.fidelity.com/atwork. If you have not previously logged in, you must set up a login ID and password.
  2. Click on your plan name.
  3. Visit Your Profile tab.
  4. Click Email Address to enter your preferred email address.
  5. Review Mail Preferences and Email Settings to elect which types of communication you would prefer to receive electronically.

TIAA-CREF:

  1. Log on to TIAA-CREF's website: www.tiaa-cref.org/eDelivery
  2. Click Sign Up for eDelivery
  3. Enter your User ID and Password
  4. Read the Terms and Conditions of eDelivery
  5. Click Edit My eDelivery Preferences
  6. Provide email address for eDelivery
  7. Click Save My eDelivery Preferences

I have an account from a prior university where I used to work. Will these changes impact that account? (added 1/17/2012)

If you completed a rollover (i.e., moved those funds into the RIT plan), then these changes do apply to you. If, on the other hand, you left your funds within that university’s plan, these changes do not apply to you. Since many colleges and universities are making similar changes, this prior university may contact you about changes they are making to their plan.

Why are you moving away from Fidelity and TIAA-CREF? (added 2/1/2012)

The Retirement Plan Investment Committee’s goal was not to move away from our current recordkeepers. Instead, the goal was to offer highly rated funds. The review and recommendations resulted in many non-Fidelity and non-TIAA-CREF funds.

Why is Fidelity the recordkeeper for Tier 1, 2, and 4 and not TIAA-CREF? (added 2/17/2012)

RIT conducted a comprehensive Request for Information (RFI) that included both Fidelity and TIAA-CREF as well as other top recordkeepers in the retirement plan industry. This process was conducted by an independent consultant and included an in depth analysis on services (e.g., recordkeeping participant account records, plan administration, etc.) and costs to be the recordkeeper for the Retirement Savings Plan. Based on the analysis, the Retirement Plan Investment Committee chose Fidelity to serve in the capacity of our recordkeeper for Tiers 1, 2 and 4. This decision was made in the best interests of the participants to provide a diversified and cost effective investment line-up, while at the same time reduce the administration fees paid by the participants and offer enhanced participant tools and services. As we are sensitive and appreciate the importance of the role that TIAA-CREF provides to our participants, a decision was made to still provide access to a limited number of the TIAA-CREF investments.

What is Morningstar? (added 2/20/2012)

Morningstar is a highly-regarded independent investment research firm, rating primarily stocks and mutual funds. They use a "star" rating system, from 1 star to 5 stars, with 5 being the highest rating. Morningstar provides data on approximately 330,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 5 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets.

Will the information on my paystub be different (added 12/21/11)

Yes. Currently, there are separate contribution amounts for each plan as well as separate contribution amounts for Fidelity and TIAA-CREF contributions. In addition, there is a separate contribution for the TIAA-CREF SRA account under the Voluntary Plan. We are pleased to combine and simplify all these contributions into three. The contributions will be combined and identified on your paystub as follows:

New Description Old Names
Ret Fid PreTx your pre-tax contributions to Fidelity Bas Fid PreTx plus Vol Fid PreTx
Ret TC PreTx your pre-tax contributions to the TIAA-CREF RA Bas TC PreTx plus Vol TC PreTx
Ret SRA PreTx your pre-tax contributions to the TIAA-CREF SRA Vol SRA
 

 

What is the difference between the TIAA-CREF RA and SRA? (added 12/21/11)

The RA and SRA offer the same fund choices, but there are a couple of differences:

TIAA Traditional Liquidity and Guaranteed Interest Rate

  1. Under the RA, there are liquidity restrictions for the TIAA Traditional funds. This means that you could only transfer 10% per year over a 9 year and 1 day period into another investment option under the plan. Because of the liquidity restriction, the guaranteed interest rate is higher than under the SRA. As of December 1, 2011, the guaranteed interest rate is 3.35% under the RA.
  2. Under the SRA, there are no liquidity restrictions for the TIAA Traditional funds. This means that you could transfer all or a portion of your TIAA Traditional fund balance into another investment option under the plan. In exchange for this flexibility, the guaranteed interest rate is lower than under the RA. As of December 1, 2011, the guaranteed interest rate is 3.00% under the SRA.

Loans under the Plan are available only from an SRA account

Will there be any changes for me because of the merger? (added 12/21/11)

 

Since the contributions will be combined, there will be a change in how your contribution amount is calculated.

  • Currently, your contributions to the Basic Plan are calculated on your base pay only (not overtime, teaching overload, summer salary, etc.).
  • Currently, your contributions to the Voluntary Plan are calculated on all pay (including overtime, teaching overload, summer salary, etc.).
  • With the plan merger, your contributions to the Retirement Savings Plan will be calculated on all pay. Therefore, if you have pay over and above your base pay, you will see a higher amount going into the retirement plan. While for some people a larger contribution is a good thing, others may want to decrease their contribution percentage slightly, to maintain a similar contribution level annually.

The RIT matching contribution to the Retirement Savings Plan will continue to be the same and calculated on base pay.

Here are two examples:

Pay and Contribution Information Hired Before 1/1/06 Hired After 1/1/06
  Contrib% Old Plans New Plan Contrib% Old Plans New Plan
Base Pay Per Pay Period   $1,200.00 $1,200.00   $1,200.00 $1,200.00
Overtime   $90.00 $90.00   $90.00 $90.00
Total Pay   $1290.00 $1290.00   $1290.00 $1290.00
Basic Plan (base pay) 2% $24.00 N/A 5% $60.00 N/A
Voluntary Plan (total pay) 7% $84.00 N/A 4% $48.00 N/A
Total Old Plans Contribution   $108.00     $108.00  
Total New Plan Contribution (total pay) 9%   $116.00 9%   $116.00

 

Why is RIT making these changes? (added 2/13/2012)

 

In our November, 2011 mailing to your home address, we mentioned that there were recent changes in the legal and regulatory environment driving these changes. Below is a more detailed explanation.

RIT initiated the Retirement Savings Plan simplification actions in response to new requirements by the U.S. Department of Labor for all 403(b) retirement plans; these new requirements are impacting most colleges and universities. RIT, as the plan sponsor, is now required to monitor fund investment performance as well as the fees that participants incur.

Previously, we offered a large number of investment options (over 200), whose performance varied. By offering a smaller number of funds, we are able to meet the new DOL requirements as well as provide only highly-rated investment options to our plan participants.

The RIT Retirement Plan Investment Committee worked with an independent investment consultant to choose the new fund lineup. To learn more about how the funds were chosen, refer to the FAQ on the Retirement Plan Simplification website athttp://www.rit.edu/fa/humanresources/benefits/retirement/faq.html#47.

We encourage you to take advantage of the many resources we have made available to help you make your decisions.

  • Comprehensive website dedicated to the Retirement Plan Simplification initiative with many resources, including Frequently Asked Questions (FAQs) that are updated regularly http://www.rit.edu/fa/humanresources/benefits/retirement/simplified.html
  • Four mailings to your home address (posted on the website)
  • Over 20 meetings for employees and retirees (schedule posted on the website)
  • 12 Help Desk sessions where plan participants can get hands-on help from Fidelity and TIAA-CREF (schedule posted on the website)
  • Online video explaining the changes (posted on the website)
  • Additional on-site counseling dates with TIAA-CREF and Fidelity (schedule and registration information posted on the website)

While the DOL requires these changes, RIT’s ultimate goal continues to be to provide support for our employees as they plan for retirement.

What do I need to do now? (changed 12/21/11)

You should take the time to review your current investments and compare them with the list of funds available in the new fund lineup. Begin to develop your new investment strategy. Take advantage of resources available through RIT, Fidelity and TIAA-CREF.

When will the four new fund tiers be available? (added 12/21/2011)

The four new fund tiers will be available beginning February 1, 2012. At that time, employees may begin to make elections to contribute their payroll contributions to the new funds. Also beginning February 1, employees and other plan participants will be able to transfer existing balances to the new funds. The current funds will still be available in February.

How did the committee select the new fund lineup? (added 12/21/2011)

The committee hired Aon Hewitt, a global investment consultant, to identify and recommend best in class funds based on both qualitative and quantitative factors. The new fund lineup was constructed to offer participants a diversified portfolio at the lowest cost possible.

What is Tier 1 - Target Retirement Date Funds? (added 12/21/11)

Tier 1 is a series of funds designed for investors expecting to retire around the year indicated in the fund name. The funds are managed by professional fund managers to become gradually more conservative over time as people move closer to retirement. The investment risk of each fund changes over time as it moves to more conservative investment options. The RIT Retirement Plan Investment Committee monitors the performance and fees for Tier 1.

What is Tier 2 - Core Mutual Funds? (added 12/21/11)

These are best in class mutual funds recommended by the professional investment advisors retained by the RIT Retirement Plan Investment Committee, and selected by the committee, representing best-in-class funds within each of the key asset classes. Refer to the FAQ that explains asset classes. The RIT Retirement Plan Investment Committee monitors the performance and fees for Tier 2.

What is Tier 3 - Annuities? (added 12/21/11)

Annuities are insurance contracts issued by an insurance company that let you accumulate money until retirement and then receive a regular payment (often monthly) for your lifetime. An annuity can be fixed or variable. A fixed annuity pays a fixed rate of interest on your investment dollars, which is adjusted periodically. A variable annuity pays an interest amount that will vary depending on the performance of the investment accounts you choose for the annuity. The RIT Retirement Plan Investment Committee monitors the performance and fees for Tier 3.

What is Tier 4 - Self-Directed Brokerage Account? (added 12/21/11)

 

This account provides a way to invest some or all of your retirement savings in a wide range of mutual funds from many different fund families. The brokerage account is available for a participant who:

  • has the knowledge and expertise to research and evaluate a broad universe of mutual funds;
  • wants to take personal responsibility for monitoring the performance and fees of each fund he/she elects; and
  • wishes to have greater choice than is available under the other three tiers.

Important Information regarding the brokerage account option:

  1. There may be additional fees for investing in the brokerage account.
  2. RIT's Retirement Plan Investment Committee is not responsible for monitoring investment performance or fees of any of the mutual funds accessed through the brokerage account.
  3. Caution: only sophisticated investors should invest through a brokerage account.

When will I be required to contribute to the new funds? (added 12/21/2011)

Beginning March 1, 2012 all new contributions to the Plan must go to approved investments in Tier 1, 2, 3, and/or 4. Employee and RIT matching contributions will begin to be invested in the new investment options (including the brokerage account) elected by the employee or, if applicable, in the continuing options identified below as "active"; if no election has been made, contributions will be invested in the Tier 1 - target retirement date fund closest to your 65th birthday (the default fund or "qualified default investment alternative", or QDIA).

What happens to current investment offerings? (added 12/21/2011)

There are three categories for existing Fidelity and TIAA-CREF investments:

  • Active: Funds that will continue to be offered for future contributions, existing balances, and transfers in or out.
  • Frozen: Funds that will not be available for future contributions or transfers, but existing balances may remain and be transferred out if you elect to do so.
  • Eliminated: Funds that will not be available for future contributions or existing balances
What funds will be in these categories? (added 12/21/2011)

There are two Fidelity funds that will remain active; all other Fidelity funds will be eliminated. Some TIAA-CREF funds will be active, some frozen and some eliminated. Refer to the chart below for details.

Company Fund Name Category
Fidelity Fidelity Contrafund (share class change only) Active
Fidelity Spartan Extended Market Index Fund Active
Fidelity All Other Fidelity Funds Eliminated
TIAA-CREF TIAA Traditional Active
TIAA-CREF CREF Stock Active
TIAA-CREF Money Market Active
TIAA-CREF CREF Bond Market Frozen
TIAA-CREF CREF Equity Index Frozen
TIAA-CREF CREF Global Equities Frozen
TIAA-CREF CREF Growth Frozen
TIAA-CREF CREF Inflation-Linked Bond Frozen
TIAA-CREF CREF Social Choice Frozen
TIAA-CREF TIAA Real Estate Frozen
TIAA-CREF TIAA-CREF International Equity Index Fund Eliminated
TIAA-CREF TIAA-CREF Large-Cap Value Index Fund Eliminated
TIAA-CREF TIAA-CREF Mid-Cap Growth Fund Eliminated
TIAA-CREF TIAA-CREF Mid-Cap Value Fund Eliminated
TIAA-CREF TIAA-CREF Small-Cap Blend Index Fund Eliminated
TIAA-CREF TIAA-CREF Lifecycle Funds (all) Eliminated

 

What happens to the balances in the funds that are eliminated? (added 12/21/2011)

Employees and other plan participants can transfer existing balances to the new funds and/or the brokerage account between February and May, 2012. On June 1, 2012, existing balances in any funds being eliminated will be moved to the target retirement date fund closest to your 65th birthday (the default fund or "qualified default investment alternative", or QDIA). Participants may transfer their balances to any fund(s) in the new lineup or the brokerage account at any time.

What happens to the balances in the funds that are frozen? (added 12/21/2011)

Employees and other plan participants can transfer existing balances to the new funds and/or the brokerage account between February and May, 2012. On June 1, 2012, existing balances in any frozen funds will remain in the frozen fund. You can transfer these funds to any available option in the Plan at any time.

Why are some funds frozen? (added 12/21/2011)

TIAA-CREF annuity funds that are not included in the active lineup are frozen because the individual contracts underlying these funds do not give RIT, the plan sponsor, the right to transfer existing money out of these funds. Only the plan participant holding these funds can do so. Therefore, the existing money in these funds will remain unless the plan participation takes action to transfer it to another fund(s). However, no additional contributions can be directed to the frozen funds, nor can money be transferred into the frozen funds on and after March 1, 2012.

What is the default fund? (added 12/21/2011)

The Retirement Plan Investment Committee has designated the Vanguard Target Retirement Series as the legally-designated "qualified default investment alternative (QDIA)" - the default fund. This default fund will be the Vanguard Target Retirement Fund closest to your 65th birthday. T his is the case even if you are currently invested in a Fidelity Freedom Fund or a TIAA-CREF Lifecycle Fund that does not correspond to your 65th birthday. If you are over 65, the default fund will be the Vanguard Target Retirement Income Fund.

What is the default fund for me? (added 12/21/2011)

 

The following chart shows the Target Retirement Date Fund based on your date of birth.

Your Birth Date Vanguard Target Retirement Date Fund Name Retirement Date Range
Before 1942 Vanguard Target Retirement Income Fund Investor Shares Retired before 2007
January 1, 1942-December 31, 1947 Vanguard Target Retirement 2010 Fund Investor Shares 2007-2012
January 1, 1943-December 31, 1952 Vanguard Target Retirement 2015 Fund Investor Shares 2013-2017
January 1, 1953-December 31, 1957 Vanguard Target Retirement 2020 Fund Investor Shares 2018-2022
January 1, 1958-December 31, 1962 Vanguard Target Retirement 2025 Fund Investor Shares 2023-2027
January 1, 1963-December 31, 1967 Vanguard Target Retirement 2030 Fund Investor Shares 2028-2032
January 1, 1968-December 31, 1972 Vanguard Target Retirement 2035 Fund Investor Shares 2033-2037
January 1, 1973-December 31, 1977 Vanguard Target Retirement 2040 Fund Investor Shares 2038-2042
January 1, 1978-December 31, 1982 Vanguard Target Retirement 2045 Fund Investor Shares 2043-2047
January 1, 1983-December 31, 1987 Vanguard Target Retirement 2050 Fund Investor Shares 2048-2052
January 1, 1988, and later Vanguard Target Retirement 2055 Fund Investor Shares 2053 and beyond

 

So then why shouldn't I just let it default? (added 12/21/2011)

It is best to make an informed decision after reviewing the options to ensure your retirement money is invested according to your preferences and risk tolerance.

Why does RIT have the right to map/move my money if I do not make a new election? (added 12/21/2011)

As plan sponsor, RIT established the 403(b) plan and the custodial accounts that hold the plan assets. Under the terms of the custodial agreements, the plan sponsor has the right to take these steps. This is the case for the funds being eliminated, for the Fidelity funds being continued and for all the new funds in Tier 1 and Tier 2. In the case of the TIAA-CREF funds being frozen or continued, the underlying arrangement is governed by an individual contract between the plan participant and TIAA-CREF, and the plan sponsor does not have the right to map/move these assets, only the plan participant has this authority.

Why didn't [my favorite fund] make the lineup? (added 12/21/2011)

The committee hired Aon Hewitt, a global investment consultant, to identify and recommend best in class funds based on both qualitative and quantitative factors. The new fund lineup was constructed to offer participants a diversified portfolio at the lowest cost possible. Most of the existing funds were not selected for the streamlined lineup.

What is a short-term trading fee? (added 12/21/2011)

Short-term trading fees are paid directly to the mutual funds, not to Fidelity Investments or TIAA-CREF. They are assessed to help protect long-term investors and fund performance from the effects of short-term trading and to discourage market timing activity. Market timing can hurt fund performance by increasing trading costs, and may also cause the portfolio manager of the fund to maintain excess cash. This, in turn, impairs the portfolio manager's ability to effectively manage the fund according to the fund's objectives.

How can I avoid having any short term trading fees during this process? (added 12/21/2011)

Short-term trading fees will not apply to money that is mapped on June 1, 2012. If you wish to transfer money before that date, you will receive a message from Fidelity when you attempt to make the transfer on their website or by phone if short-term trading fees will apply.

What is an active fund? (added 12/21/2011)

With actively managed funds, the fund manager makes specific investments with the goal of outperforming an investment benchmark index. Funds strategically aim to generate retursn that eat the major market index over the long term.

What is a passive fund? (added 12/21/2011)

With the passively managed funds, the fund manager does not choose the investment funds; instead the funds are automatically selected to match an index or part of the market. Funds are strategically designed to generate returns that closely mirror the performance and risks of a major market index (such as the S&P 500) over the long term.

What is an index fund? (added 12/21/2011)

See "what is a passive fund" above.

What is an annuity? (added 12/21/2011)

An annuity is a contract, usually issued by an insurance company, which provides income for a specific period of time. Tier Three includes annuities administered by ITAA-CREF.

Will these investment funds remain in place for good or will there be further changes? (added 12/21/2011)

The RIT Retirement Plan Investment Committee will monitor the fund performance and fees.

Where can I learn more about the funds (added 12/21/2011)

The document mailed to you in December called Investment Information for the RIT Retirement Savings Plan contains detailed descriptions of each of the funds. There are a number of reputable online resources, the most well-known of which is Morningstar (www.morningstar.com).

What happens if I do not make a new election?

If you do not make a new election for your future contributions by March 1, your future contributions and RIT's matching contributions will be invested in the default fund. If you do not transfer your existing balances in funds being eliminated by June 1, your existing balances will be transferred to the default fund. However if you elect to participate in the brokerage account, any remaining balances in eliminated funds will be moved to the brokerage account on June 1 rather than to the default fund.

How do I find out if an investment option I am currently in has a short term trading fee? (added 12/21/2011)

Please log on to NetBenefits at www.fidelity.com/atwork to view the prospectus of each fund available to you in the Plan, or call 1-800-343-0860 to speak with a Fidelity representative Monday through Friday, between 7:30 a.m. and 11 p.m. Central time. All mutual fund fees, including short-term trading fees, are fully disclosed in each funds' prospectus. You will also find the information in the Investment Information for the RIT Retirement Savings Plan that Fidelity is sending to participants in late December.

In the 38-page Investment Information mailing, the CREF Bond Market account showed up in both the Frozen and Eliminated sections. Which is correct? (added 1/10/2012)

There was a typo in the booklet and we apologize. The CREF Bond Market account will be a Frozen Fund. We are updating the online version of this booklet.

To make investment changes and to view my Tier 1, Tier 2, and Tier 4 investments, will I need to login to each fund family’s website (i.e., Vanguard, T. Rowe Price, PIMCO, etc.)? (added 1/10/2012)

No. Fidelity will be the recordkeeper for the Tier 1, Tier 2, and Tier 3 investments even though many of the funds are not Fidelity funds. Therefore, you would log into the Fidelity website (or call Fidelity) for all funds in Tiers 1, 2, and 4. Your Fidelity quarterly statements will have information on all the funds in Tiers 1, 2, and 3 – even the non-Fidelity funds. You will log into the TIAA-CREF website (or call TIAA-CREF) for all funds in Tier 3 (Annuities). Your TIAA-CREF quarterly statements will have information on all the funds in Tier 3.

I have balances in several of the TIAA-CREF frozen funds. Can I transfer balances among these funds after February 1? (added 1/10/2012)

No. The frozen funds are closed to “new” money, which includes 1) payroll contributions and 2) transfers in from other funds, including other frozen funds. You can transfer funds out of the frozen funds at any time to any of the active funds.

Why are some funds “frozen” and why are some funds “eliminated?” (added 1/10/2012)

Aon Hewitt (the RIT Retirement Plan Investment Committee’s advisor) did not recommend the frozen or eliminated funds for the RIT Retirement Savings Plan. RIT does not have the authority to transfer the balances in the funds that are categorized as “frozen” because these accounts were established as individual contracts between the plan participant and TIAA-CREF. Therefore, the balances are only able to be transferred by the participant. The eliminated funds were established under group custodial agreements between the recordkeepers and RIT. Therefore, RIT does have the right to transfer those balances to the Default Fund (Tier 1-Target Retirement Date Fund Series). If the funds designated as “frozen” had not been under individual contracts, they would have been designated as “eliminated” and RIT would have transferred any existing balances to the Default Fund on June 1, 2012.

Is there a fee to transfer among Tier 1, Tier 2, and/or Tier 3? (added 1/17/2012)

No, there are no charges to move your investments among these tiers.

I am nearing retirement and would prefer not to change my investments. What can I do to keep my retirement funds invested as they currently are? (added 1/17/2012)

If your account is currently invested in funds that will remain active, you do not have to make any changes. For instance, if your investments are currently 50% TIAA Traditional and 50% CREF Stock, you can keep your money where it is.

If your account is currently invested in funds that will be frozen or eliminated, there may be several alternatives available to you:

  1. For money invested in Fidelity funds, you can open a BrokerageLink account and do an in-kind transfer as of June 1, 2012. You can find detailed information about BrokerageLink and the in-kind transfer in the Investment Guide you received in the mail in early January as well as the brokerage account section on the HR Retirement Plan Simplification website.
  2. For money invested in TIAA-CREF funds other than the Lifecycle Funds, you can open a BrokerageLink account and transfer your money from TIAA-CREF to Fidelity. You should contact a Fidelity retirement consultant for assistance with transferring money from TIAA-CREF to Fidelity. The TIAA-CREF annuities and mutual funds, with the exception of the Lifecycle Funds, are available in BrokerageLink.
  3. If you are age 59-1/2 or older, you have the right to rollover your existing plan balances to an Individual Retirement Account with either TIAA-CREF or Fidelity. This would allow you to continue to invest in the funds you are currently using. However, please note that, to do this on an ongoing basis, you would need to transfer money from time to time following your initial transfer. This is because your future contributions and RIT’s contributions can only be sent by RIT to the RIT Retirement Savings Plan accounts at Fidelity and TIAA-CREF.

Will I still be able to do automatic rebalancing with my Fidelity account? (added 1/17/2012)

No. If you invest in Tiers 1, 2 or 4, the investment options for which Fidelity is the recordkeeper, please note that the automatic rebalancing feature will no longer be available beginning June 1, 2012. The reason is that the availability of the BrokerageLink account (Tier 4) is not compatible systematically with the automatic rebalancing feature. This affects you even if you are not participating in BrokerageLink, as it must be consistently applied to all participants in a particular plan. However, you can rebalance your Fidelity account yourself by taking these steps:

  1. Log on to your account through www.Fidelity.com/atwork.
  2. From the home page, click on the Select Action link next to your plan name, select Change Investments from the rop-down menu, then select Rebalance.
  3. Enter the percentage of the balance in each of your investment options that you wish to direct to each investment option you choose — your selections must add up to 100%.
  4. View the online prospectus for each fund in which you are investing.
  5. Confirm your elections.

I get a confirmation after June 1 for money RIT moved to Tier 1. (added 1/17/2012)

No. The information will be reflected online at Fidelity as well as in your June 30, 2012 quarter-end statement.

What was the process the Retirement Plan Investment Committee used to pick funds for the new lineup? (added 1/27/2012)

RIT’s Retirement Plan Investment Committee chose an independent investment advisor, Aon Hewitt, to assist the Committee. Aon Hewitt recommended “best-in-class” funds for the lineup and is working with the Committee to develop a process to review the funds on a regular basis in the future.
The Committee met with Aon Hewitt to review the plan’s future investment structure. The review included a discussion and decisions on the number of funds, use of active versus passive management, appropriate asset classes, etc. The investment committee reviewed materials from Aon Hewitt that benchmarked the current plan structure versus other colleges and universities on a variety of metrics including: number of funds, vehicle choice, current asset mix (utilization), prevalence of target date funds, use of index funds, etc.
Based on that discussion, the Aon Hewitt team then made recommendations to the committee for funds within the chosen asset classes. The committee thoroughly considered qualitative and quantitative criteria presented in addition to the fund performance, including the impact of fund fees. A summary of some of the relevant factors considered by the committee regarding each fund include the following:

  1. Organization and People (ownership structure, compensation policies, professional turnover, succession planning, business focus, level of assets, fees imposed, etc.)
  2. Investment Process (consistent investment philosophy, repeatable process, strong research capabilities, etc.)
  3. Performance Record - Short and long-term performance (after fees are deducted) was reviewed compared to a passive benchmark and versus the appropriate peer group of funds.

If I am currently in a target retirement date fund (Fidelity Freedom Fund and/or TIAA-CREF Lifecycle Fund) does it make sense to do nothing and let RIT automatically transfer the funds to the Vanguard Target Retirement Date Funds? (added 2/1/2012)

You could certainly to choose to take no action. However, it is important to note that the automatic transfer could transfer your funds to a different target date. For example, if you elected to invest in the 2020 fund today, the automatic transfer may not go to the Vanguard 2020 fund if it is not nearest your 65th birthday as outlined in the Investment Information (pages 25 and 26 found at http://www.rit.edu/fa/humanresources/files/docs/investmentInfo.pdf).

Are the expense ratios generally higher in Tier I vs Tier II? (added 2/1/2012)

The expense ratios vary by fund not by tier. You can find the fund performance and expense ratio information for Tier 1 and Tier 2 at http://www.rit.edu/humanresources/files
/docs/fundperformance.pdf.

I am trying to make my future investment elections on the Fidelity website based on the instructions sent in late January. It appears that I have to make a different election for the difference sources (my contributions versus RIT’s contributions), but th

The directions we included in the late January mailing were written as though the participant was investing all sources (e.g., employee contributions, RIT contributions) in the same manner, which is accurate for most participants. It has come to our attention that a small number of plan participants have made different investment elections for the different sources; this may be been intentional or it may have been an oversight.

Therefore, when you log on to make investment changes to your future contributions and/or transfer (exchange) balances, what is displayed may be different than what we explained in our late January mailing. When making a change in your future contribution investments, the Select Funds section display is arranged by separate sources (e.g., your pre-tax contributions, RIT’s contributions), and would require you to enter your contribution elections multiple times for each separate source.

If you would like to have future contributions invested in the same manner, you can do the following:

  • When you click on Select Funds, the page that opens is titled Change Your Investment Elections.
  • Beneath the title, it says “Changes you make below are applied to all of your sourcesindividually. Or, you can choose to invest your sources the same way.“
  • Click on “invest your sources the same way.”
  • It will now read “Changes you make below are applied to all of your sources thesame way. Or, you can choose to invest your sources differently.”
  • You will now have a consolidated view that will allow you to make your investment elections so they apply to both your own and RIT’s contributions consistently, without having to enter the same information multiple times.

Additionally, if you are going to transfer existing balances within Fidelity, the instructions for doing so are on page three of the January, 2012 mailing referenced above. You can have these be the same or different by source as well. You will see two options when on the transfer (exchange) screen; click on the option you prefer:

  • Use all eligible sources(s)/source group(s) proportionally
  • Select specific source(s)/source group(s).

If you need any further assistance, you should contact Fidelity.

When I logged into the Fidelity system, the ticker symbol for the Spartan Extended Market Index Fund is different than what RIT published in late December. What is the correct information? (added 2/14/2012)

Effective as of the close of business on February 17, 2012, there will be a share class change for this fund that impacts ALL fund holders; it is not related to the changes RIT is making. The new share class has a lower expense ratio (lower cost). The fund’s investment objective, strategies and risk remain the same.
The new ticker symbol is FSEVX and has an expense ratio of.07%; the previous share class (FSEMX) has an expense ratio of .10%.
For those who hold this fund, any balance in the existing share class of the fund will be exchanged into the new share class. If your future contributions election includes this fund, they will be automatically directed to the new share class. You do not need to take any action to receive this new, lower cost share class.

If the Retirement Plan Investment Committee determines that a fund needs to be replaced, what action do I need to take? (added 2/23/2012)

You do not need to take any action. If a fund is replaced, the assets from the prior fund will be automatically transferred to the replacement fund. Employees will be notified prior to the change that the fund is being replaced.

I am worried because I don’t have time to make my decisions right now. Will I be able to make decisions later? (added 2/23/2012)

Absolutely. It is not a crisis if you don’t take any action right now – you can always make changes in the future. There are two key dates; if you miss one or both, you can still take action at a later time.

Fidelity is the recordkeeper for the Tier 1 funds, so you would simply log into your Fidelity account to move the Default Fund balance to another Tier 1 fund, Tier 2 Core Mutual Funds, or Tier 4 Brokerage Account. If you want to transfer any funds in the Default Fund to the Tier 3 Annuities with TIAA-CREF, you should contact TIAA-CREF to help you with that transfer.

  1. Future contributions – payroll contributions after March 2 can go only to Active funds; they cannot go to Eliminated or Frozen funds. If your current payroll contributions go to Eliminated or Frozen funds and you take no action, beginning on March 15 or 16 (depending on your payroll), your contributions will go to the Default Fund (the Tier 1 Target Retirement Fund nearest your 65th birthday). You can move the funds in the Default Fund to another option in the plan at any time. There are no short-term trading fees for the Tier 1 funds.
  2. Existing balances – on June 1, 2012, existing balances in Eliminated funds will be transferred to the Default Fund (the Tier 1 Target Retirement Fund nearest your 65th birthday). Existing balances in Frozen funds will remain in the Frozen fund – you can move those out at any time. You can move the funds in the Default Fund to another option in the plan at any time. There are no short-term trading fees for the Tier 1 funds.
I used to contribute to TIAA-CREF. My contributions from my March paycheck defaulted – they went to the Tier 1 Target Retirement Date fund at Fidelity. How can I change them back to TIAA-CREF? (added 3/13/2012)

You can make a change to direct your future contributions to an Active fund at TIAA-CREF (TIAA Traditional, CREF Stock, or CREF Money Market).

  1. Log into your TIAA-CREF account (or call TIAA-CREF at (800) 842-2776/v and (800) 842-2755/TTY) and change your investment election for future contributions to an Active fund. Refer to the mailing HR sent in January on how to make this change online (http://www.rit.edu/fa/humanresources/files/docs/ChangeInvestments.pdf).
  2. You will also need to complete a new Salary Reduction Agreement (http://www.rit.edu/humanresources/files/forms/retirementplanbeforetax.pdf) to indicate the portion of your contributions that you want to go to TIAA-CREF (refer to sample completed forms at http://www.rit.edu/humanresources/files/docs/SampleForms.pdf). Return your completed form to the Human Resources Department.
  3. If you would like to move the contributions that went the Tier 1 fund at Fidelity back to TIAA-CREF, request the appropriate form from TIAA-CREF (phone number in #1 above).
My contributions from my March paycheck defaulted – they went to the Tier 1 Target Retirement Date fund at Fidelity. How can I change the investment election for my future contributions and move the balances within Fidelity? (added 3/13/2012)

Log in to your account at Fidelity (go to www.fidelity.com/atwork). If you have not logged in before, click on the Register Now link on the left menu section. You can change the investment election for the future contributions as well as transfer the balances to a different fund. Refer to the mailing HR sent in January on how to make these changes online (http://www.rit.edu/fa/humanresources/files/docs/ChangeInvestments.pdf).

Beginning in January, TIAA-CREF set up a new RA contract and some of my contributions started going to their Lifecycle Fund. Why did that happen and how can I make a change? (added 3/13/2012)

 

HR sent e-mails to employees who were impacted by this new contract. The following information is taken from that communication. RIT merged the Basic Retirement Plan and the Voluntary Retirement Plan effective January 1, 2012. Below is a chart showing how contributions were deposited to your account at TIAA-CREF prior to the merger and how they are now deposited after the merger:

  Prior to January 1, 2012   Beginning January 1, 2012
1 Your contributions to the Basic Plan went to the Basic Plan RA contract --> There are no new employee contributions going to the previous Basic Plan contract
2 RIT’s contributions to the Basic Plan went to the Basic Plan RA contract --> RIT’s contributions continue to go to the previous Basic Plan RA contract
3 Your contributions to the Voluntary Plan to an RA contract, went to the Voluntary Plan RA contract --> All of your RA contributions go to the previous Voluntary Plan RA contract
4 Your contributions to the Voluntary Plan to an GSRA/SRA contract, went to the Voluntary Plan GSRA/SRA contract --> All of your GSRA/SRAcontributions go to the previous Voluntary Plan GSRA/SRA contract

NOTES: RA is a Regular Retirement Annuity 
GSRA/SRA is a Group Supplemental Retirement Annuity/Supplemental Retirement Annuity

As in the past, in order to receive the RIT matching contributions, the employee’s contributions need to be deposited into an RA account. Due to the Plans merging, there are no longer employee contributions being deposited into the previous Basic Plan contract (#1 above). Instead, all employee RA contributions are being deposited into the previous Voluntary Plan contract (#3 above). However, you had not been contributing to an RA contract in the Voluntary Plan in the past. Therefore, TIAA-CREF automatically set up a new RA contract for you and your January payroll contributions went to this new contract. Your contributions were invested in a TIAA-CREF Lifecycle Fund (the prior default fund with TIAA-CREF).

Because the TIAA-CREF Lifecycle Fund is an Eliminated fund, no payroll contributions can go to this fund after March 2. Therefore, if you didn’t make an investment change, beginning with the March 15 semi-monthly and March 16 bi-weekly payroll, these contributions were sent to the default fund – the Tier 1 Target Retirement Date fund nearest your 65th birthday. Fidelity is the recordkeeper for Tier 1 so the contributions were sent to Fidelity instead of TIAA-CREF.

You can certainly make a change – you do not need to leave your contributions in the Tier 1 fund.

    • If you would like them to be directed back to TIAA-CREF
      • Contact TIAA-CREF at (800) 842-2776/v and (800) 842-2755/TTY. A representative can help you complete the set up of this contract.
      • After you have completed the account set up, the representative will help you change your future contributions and existing balances in the Lifecycle Fund to an Active fund (TIAA Traditional, CREF Stock, or CREF Money Market) or you can log into your TC account online and make the change.
      • You will also need to complete a new Salary Reduction Agreement (http://www.rit.edu/fa/humanresources/files/forms/retirementplanbeforetax.pdf) to indicate the portion of your contributions that you want to go to TIAA-CREF (refer to sample completed forms at http://www.rit.edu/humanresources/files/docs/SampleForms.pdf). Return your completed form to the Human Resources Department.
      • To move the contributions that went to the Tier 1 fund at Fidelity, ask Ken to get you the form you need to fill out to transfer the balance back to TIAA-CREF.
    • If you would like to leave your contributions directed to Fidelity, you can simply log in to your account at Fidelity (go to www.fidelity.com/atwork). If you have not logged in before, click on the Register Now link on the left menu section. You can change the investment election for the future contributions as well as transfer the balances to a different fund. Refer to the mailing HR sent in January on how to make these changes online (http://www.rit.edu/fa/humanresources/files/docs/ChangeInvestments.pdf).
Where can I learn more about the brokerage account, BrokerageLink?

Click here to refer to a brochure with details about BrokerageLink

 

 

    At the top of page 24 on the Investment Information, it says that I can get a Brokerage Account application beginning February 1, 2011. Is that a typo? (added 1/10/2012)

    Yes, there was a typo in the booklet and we apologize. The date should have read February 1, 2012. We are updating the online version of this booklet.

    If I transfer funds to Tier 4-Brokerage Account, will I have a taxable event? (added 1/10/2012)

    No. The Tier 4 investments will still be part of the RIT Retirement Savings Plan. You will be able to view and change your investments on the Fidelity website.

    What does “in-kind” transfer mean and how will it work? (added 1/10/2012)

    The in-kind transfer is available for any Fidelity funds that are being eliminated (all Fidelity funds except the Contrafund and the Spartan Extended Markets Index Fund). The in-kind transfer is not available for any TIAA-CREF funds. If you have opened a brokerage account by May 15, 2012, any remaining balances in eliminated Fidelity funds will be transferred, in-kind (i.e., without selling and repurchasing), to the brokerage account on June 1, 2012.

    How can I find out the expense ratio and other fees for investing in Tier 4? (added 1/17/2012)

    Here is a direct link to search the page on the Fidelity website:http://personal.fidelity.com/research/funds/?bar=p

    OR:

    Part way down the page, there is a section called “Search with Fund Evaluator.” This section has a number of filters for the search including performance, Morningstar ratings, etc. In addition, there is a checkbox where a person can choose to review funds that have no additional fees or load charges. There are over 1,700 funds that have no additional fees (other than the standard expense ratio).

     

    • Go to www.fidelity.com.
    • At the top of the home page, click the "Research" tab.
    • A series of additional links will appear. Click the one titled "Mutual Funds"
    I am trying to make my future investment elections on the Fidelity website based on the instructions sent in late January. It appears that I have to make a different election for the difference sources (my contributions versus RIT’s contributions), but th

     

    The directions we included in the late January mailing were written as though the participant was investing all sources (e.g., employee contributions, RIT contributions) in the same manner, which is accurate for most participants. It has come to our attention that a small number of plan participants have made different investment elections for the different sources; this may be been intentional or it may have been an oversight.

    Therefore, when you log on to make investment changes to your future contributions and/or transfer (exchange) balances, what is displayed may be different than what we explained in our late January mailing. When making a change in your future contribution investments, the Select Funds section display is arranged by separate sources (e.g., your pre-tax contributions, RIT’s contributions), and would require you to enter your contribution elections multiple times for each separate source.

    If you would like to have future contributions invested in the same manner, you can do the following:

    • When you click on Select Funds, the page that opens is titled Change Your Investment Elections.
    • Beneath the title, it says “Changes you make below are applied to all of your sources individually. Or, you can choose to invest your sources the same way.“
    • Click on “invest your sources the same way.”
    • It will now read “Changes you make below are applied to all of your sources the same way. Or, you can choose to invest your sources differently.”
    • You will now have a consolidated view that will allow you to make your investment elections so they apply to both your own and RIT’s contributions consistently, without having to enter the same information multiple times.

    Additionally, if you are going to transfer existing balances within Fidelity, the instructions for doing so are on page three of the January, 2012 mailing referenced above. You can have these be the same or different by source as well. You will see two options when on the transfer (exchange) screen; click on the option you prefer:

    • Use all eligible sources(s)/source group(s) proportionally
    • Select specific source(s)/source group(s).

    If you need any further assistance, you should contact Fidelity.

    When I logged into the Fidelity system, the ticker symbol for the Spartan Extended Market Index Fund is different than what RIT published in late December. What is the correct information? (added 2/14/2012)

    Effective as of the close of business on February 17, 2012, there will be a share class change for this fund that impacts ALL fund holders; it is not related to the changes RIT is making. The new share class has a lower expense ratio (lower cost). The fund’s investment objective, strategies and risk remain the same.

    The new ticker symbol is FSEVX and has an expense ratio of.07%; the previous share class (FSEMX) has an expense ratio of .10%.

    For those who hold this fund, any balance in the existing share class of the fund will be exchanged into the new share class. If your future contributions election includes this fund, they will be automatically directed to the new share class. You do not need to take any action to receive this new, lower cost share class.

    If the Retirement Plan Investment Committee determines that a fund needs to be replaced, what action do I need to take? (added 2/23/2012)

    You do not need to take any action. If a fund is replaced, the assets from the prior fund will be automatically transferred to the replacement fund. Employees will be notified prior to the change that the fund is being replaced.

    I am worried because I don’t have time to make my decisions right now. Will I be able to make decisions later? (added 2/23/2012)

    Absolutely. It is not a crisis if you don’t take any action right now – you can always make changes in the future. There are two key dates; if you miss one or both, you can still take action at a later time.

    1. Future contributions – payroll contributions after March 2 can go only to Active funds; they cannot go to Eliminated or Frozen funds. If your current payroll contributions go to Eliminated or Frozen funds and you take no action, beginning on March 15 or 16 (depending on your payroll), your contributions will go to the Default Fund (the Tier 1 Target Retirement Fund nearest your 65th birthday). You can move the funds in the Default Fund to another option in the plan at any time. There are no short-term trading fees for the Tier 1 funds.
    2. Existing balances – on June 1, 2012, existing balances in Eliminated funds will be transferred to the Default Fund (the Tier 1 Target Retirement Fund nearest your 65th birthday). Existing balances in Frozen funds will remain in the Frozen fund – you can move those out at any time. You can move the funds in the Default Fund to another option in the plan at any time. There are no short-term trading fees for the Tier 1 funds.

    Fidelity is the recordkeeper for the Tier 1 funds, so you would simply log into your Fidelity account to move the Default Fund balance to another Tier 1 fund, Tier 2 Core Mutual Funds, or Tier 4 Brokerage Account. If you want to transfer any funds in the Default Fund to the Tier 3 Annuities with TIAA-CREF, you should contact TIAA-CREF to help you with that transfer.

    I used to contribute to TIAA-CREF. My contributions from my March paycheck defaulted – they went to the Tier 1 Target Retirement Date fund at Fidelity. How can I change them back to TIAA-CREF? (added 3/13/2012)

    You can make a change to direct your future contributions to an Active fund at TIAA-CREF (TIAA Traditional, CREF Stock, or CREF Money Market).

     

    1. Log into your TIAA-CREF account (or call TIAA-CREF at (800) 842-2776/v and (800) 842-2755/TTY) and change your investment election for future contributions to an Active fund. Refer to the mailing HR sent in January on how to make this change online (http://www.rit.edu/fa/humanresources/files/docs/ChangeInvestments.pdf).
    2. You will also need to complete a new Salary Reduction Agreement to indicate the portion of your contributions that you want to go to TIAA-CREF (refer to sample completed forms at http://www.rit.edu/fa/humanresources/files/docs/SampleForms.pdf). Return your completed form to the Human Resources Department.
    3. If you would like to move the contributions that went the Tier 1 fund at Fidelity back to TIAA-CREF, request the appropriate form from TIAA-CREF (phone number in #1 above).
    My contributions from my March paycheck defaulted – they went to the Tier 1 Target Retirement Date fund at Fidelity. How can I change the investment election for my future contributions and move the balances within Fidelity? (added 3/13/2012)

    Log in to your account at Fidelity (go to www.fidelity.com/atwork). If you have not logged in before, click on the Register Now link on the left menu section. You can change the investment election for the future contributions as well as transfer the balances to a different fund. Refer to the mailing HR sent in January on how to make these changes online (http://www.rit.edu//fahumanresources/files/docs/ChangeInvestments.pdf).

    Beginning in January, TIAA-CREF set up a new RA contract and some of my contributions started going to their Lifecycle Fund. Why did that happen and how can I make a change? (added 3/13/2012)

    HR sent e-mails to employees who were impacted by this new contract. The following information is taken from that communication. RIT merged the Basic Retirement Plan and the Voluntary Retirement Plan effective January 1, 2012. Below is a chart showing how contributions were deposited to your account at TIAA-CREF prior to the merger and how they are now deposited after the merger:

      Prior to January 1, 2012   Beginning January 1, 2012
    1 Your contributions to the Basic Plan went to the Basic Plan RA contract --> There are no new employee contributions going to the previous Basic Plan contract
    2 RIT’s contributions to the Basic Plan went to the Basic Plan RA contract --> RIT’s contributions continue to go to the previous Basic Plan RA contract
    3 Your contributions to the Voluntary Plan to an RA contract, went to the Voluntary Plan RA contract --> All of your RA contributions go to the previous Voluntary Plan RA contract
    4 Your contributions to the Voluntary Plan to an GSRA/SRA contract, went to the Voluntary Plan GSRA/SRA contract --> All of your GSRA/SRA contributions go to the previous Voluntary Plan GSRA/SRA contract

    NOTES: RA is a Regular Retirement Annuity 
    GSRA/SRA is a Group Supplemental Retirement Annuity/Supplemental Retirement Annuity

    As in the past, in order to receive the RIT matching contributions, the employee’s contributions need to be deposited into an RA account. Due to the Plans merging, there are no longer employee contributions being deposited into the previous Basic Plan contract (#1 above). Instead, all employee RA contributions are being deposited into the previous Voluntary Plan contract (#3 above). However, you had not been contributing to an RA contract in the Voluntary Plan in the past. Therefore, TIAA-CREF automatically set up a new RA contract for you and your January payroll contributions went to this new contract. Your contributions were invested in a TIAA-CREF Lifecycle Fund (the prior default fund with TIAA-CREF).

    Because the TIAA-CREF Lifecycle Fund is an Eliminated fund, no payroll contributions can go to this fund after March 2. Therefore, if you didn’t make an investment change, beginning with the March 15 semi-monthly and March 16 bi-weekly payroll, these contributions were sent to the default fund – the Tier 1 Target Retirement Date fund nearest your 65th birthday. Fidelity is the recordkeeper for Tier 1 so the contributions were sent to Fidelity instead of TIAA-CREF.

    You can certainly make a change – you do not need to leave your contributions in the Tier 1 fund.

      • If you would like them to be directed back to TIAA-CREF
        • Contact TIAA-CREF at (800) 842-2776/v and (800) 842-2755/TTY. A representative can help you complete the set up of this contract.
        • After you have completed the account set up, the representative will help you change your future contributions and existing balances in the Lifecycle Fund to an Active fund (TIAA Traditional, CREF Stock, or CREF Money Market) or you can log into your TC account online and make the change.
        • You will also need to complete a new Salary Reduction Agreement to indicate the portion of your contributions that you want to go to TIAA-CREF (refer to sample completed forms). Return your completed form to the Human Resources Department.
        • To move the contributions that went to the Tier 1 fund at Fidelity, ask Ken to get you the form you need to fill out to transfer the balance back to TIAA-CREF.
      • If you would like to leave your contributions directed to Fidelity, you can simply log in to your account at Fidelity (go to www.fidelity.com/atwork). If you have not logged in before, click on the Register Now link on the left menu section. You can change the investment election for the future contributions as well as transfer the balances to a different fund. Refer to the mailing HR sent in January on how to make these changes online (http://www.rit.edu/fa/humanresources/files/docs/ChangeInvestments.pdf).
    Where can I learn more about the brokerage account, BrokerageLink?

    Click here to refer to a brochure with details about BrokerageLink

     

     

      At the top of page 24 on the Investment Information, it says that I can get a Brokerage Account application beginning February 1, 2011. Is that a typo? (added 1/10/2012)

      Yes, there was a typo in the booklet and we apologize. The date should have read February 1, 2012. We are updating the online version of this booklet.

      If I transfer funds to Tier 4-Brokerage Account, will I have a taxable event? (added 1/10/2012)

      No. The Tier 4 investments will still be part of the RIT Retirement Savings Plan. You will be able to view and change your investments on the Fidelity website.

      What does “in-kind” transfer mean and how will it work? (added 1/10/2012)

      The in-kind transfer is available for any Fidelity funds that are being eliminated (all Fidelity funds except the Contrafund and the Spartan Extended Markets Index Fund). The in-kind transfer is not available for any TIAA-CREF funds. If you have opened a brokerage account by May 15, 2012, any remaining balances in eliminated Fidelity funds will be transferred, in-kind (i.e., without selling and repurchasing), to the brokerage account on June 1, 2012.

      How can I find out the expense ratio and other fees for investing in Tier 4? (added 1/17/2012)

      Here is a direct link to search the page on the Fidelity website:http://personal.fidelity.com/research/funds/?bar=p

      OR:

      • Go to www.fidelity.com.
      • At the top of the home page, click the "Research" tab.
      • A series of additional links will appear. Click the one titled "Mutual Funds"

      Part way down the page, there is a section called “Search with Fund Evaluator.” This section has a number of filters for the search including performance, Morningstar ratings, etc. In addition, there is a checkbox where a person can choose to review funds that have no additional fees or load charges. There are over 1,700 funds that have no additional fees (other than the standard expense ratio).

      I plan on opening a brokerage account. Could I get the Tier 2 mutual funds in the brokerage account? (added 1-17/2012)

      Yes, you can. However, it is likely that the expense ratio (i.e., cost) for funds are less expensive in Tier 2 than they are within the brokerage account; in addition, there could be other fees for these funds within the brokerage account. Therefore, we recommend that you check the expense ratio and fee information before you invest in the Tier 2 funds within the brokerage account.
      <div>&nbsp;</div>
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      <ol></ol>

      Is there a minimum amount I need to invest in the Tier 4 Brokerage Account? (updated 2/8/2012)

      In some cases, yes. If you invest in a fund that has no transaction fees, generally there is no minimum amount to invest. All funds that have transaction fees do have a minimum required. The minimum varies by fund, but is often $2,500. To learn what the minimum investment is for a fund that has a transaction fee, you can call Fidelity at (866) 956-3193.

      How can I set up my payroll contributions to go to the brokerage account? (added 2/1/2012)

      You can direct the percentage of your payroll contributions that goes to Tier 1, Tier 2, and/or Tier 4 online with Fidelity. To elect the specific fund(s) in the brokerage account that you want to have your payroll contributions directed to, contact the Fidelity BrokerageLink group at (866) 956-3193.

      Is there a minimum payroll contribution amount? (added 2/1/2012)

      No, there is no minimum payroll contribution amount.

      Is there a charge for my payroll contributions directed to the brokerage account? (added 2/1/2012)

      If your payroll contributions are directed to a fund that has no transaction fees, there is no charge for your payroll contributions. If your payroll contributions are directed to a fund that does have a transaction fee, there is a $5 charge each pay period. This charge will be deducted directly from your brokerage account.

      Do I have to transfer money into a fund in the brokerage account before I can begin payroll contributions? (updated 2/8/2012)

      No, if your payroll contributions are directed to a fund that has no transaction fees. In other words, you can begin directing payroll contributions without first transferring money into the non-fee fund.

      Yes, if your payroll contributions are directed to a fund that does have transaction fees. In other words, you would need to “seed” the fund with a transfer from another plan investment -- you must first transfer into the fund at least the minimum required amount.

      Please contact a Fidelity Brokerage Representative for more details.

      Are TIAA-CREF fund available in the Tier 4 Brokerage Account? (added 2/1/2012)

      TIAA-CREF mutual funds, except the TIAA-Lifecycle Funds, are available in Tier 4. TIAA-CREF annuities are not available in Tier 4.

      Can I do an in-kind transfer of my TIAA-CREF mutual funds? (added 2/1/2012)

      No, the in-kind transfer option is available only for Fidelity funds.

      I am trying to understand the different types of fees with the brokerage account. Can you give me a summary? (updated 2/8/2012)

      There are about 9,500 funds available in the brokerage account. There are really three categories for fees for the available funds:

      In addition, if you elect to have your payroll contributions go to a fund with additional fees (#2 and #3 above), you will pay $5 each pay period per fund for that deposit. There is no pay period charge for funds in #1 above. Please contact a Fidelity Brokerage Representative for questions related to specific funds.

      To understand what funds have fees, refer to the question How can I find out the expense ratio and other fees for investing in Tier 4?.

        1. About 1,700 have no additional fees over and above the expense ratio. All Fidelity funds are in this category.
        2. There are other funds that have a flat $75 charge (transaction fee) when you deposit money into the fund. The reason for this charge is that the investment company offering the fund does not share revenue with Fidelity.
        3. There are other funds that have load charges; these fees include a fee when you buy the fund (i.e., when you transfer money into the fund), when you sell the fund, and/or an ongoing fee to have the fund.

      Is there a fee to transfer among Tier 1, Tier 2, and/or Tier 3? (added 1/17/2012)

      No, there are no charges to move your investments among these tiers.