Dear Retirement Plan Participants:
In early September, I sent you information announcing that the University is making changes to the funds available in the University of Virginia Retirement and Savings Plans including the Optional Retirement Plan (ORP), Medical Center Retirement Plan (MCRP), 403(b) Plan and Cash Match Plan. These changes do not affect the Virginia Retirement System (VRS) or the Commonwealth of Virginia 457 Deferred Compensation Plan.
As of September 26, 2016, the new, streamlined, three-tiered investment structure became available for viewing and selection in the UVA Retirement and Savings Plans.
In order to simplify your investment decision process and implement a consistent structure across all of the University’s Retirement and Savings Plans, a number of updates to the fund investment menu will be made. Effective February 1, 2017, many existing mutual fund options will be eliminated. If you take no action, the assets in the eliminated funds will be moved to funds that have similar investment objectives and risks, or else into a Tier 1 target-date fund.
Also effective February 1, 2017, five variable annuities will be “restricted” and will no longer accept new contributions, transfers or rollovers. If you currently contribute to any of the restricted investment options, any future contributions will be redirected into replacement options as shown in the enclosed Investment and Fund Transfers Guide.
Many of the eliminated mutual fund options will be available through the self-directed brokerage in Tier 3. You will need to open a brokerage account through TIAA or Fidelity to access these options. Variable annuities are not available through self-directed brokerage.
Take some time to decide whether you’d like to choose investments from the streamlined, three-tiered investment structure or, if you prefer, simply do nothing and allow your investments to transfer automatically to the new investment structure. If you want to make a change to your investment options prior to the transfers, you have until January 31, 2017 to do so. You may also make changes at any time after transfers are made on February 1, 2017.
Please read the enclosed guides and consider attending an information session between November 2016 and January 2017 for further details. It’s important for you to understand these updates so that you can make the best investment decisions to help you reach your savings goals.
Your work helps to ensure the success of the University, and in return, the University’s leadership team wants to help support your financial success. We are pleased to provide you with a simpler way to invest and the support you need to find financial well-being in retirement.
Patrick D. Hogan
Executive Vice President and Chief Operating Officer