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[March 3, 2005] In the next few months, participants in the University’s Defined Contribution Plan (DC Plan) and Tax-Deferred 403(b) Plan (403(b) Plan) will receive information about important changes in account and recordkeeping services for the two plans. Beginning in July 2005, participant account and recordkeeping services for the DC and 403(b) Plans will be provided by Fidelity Investments Tax-Exempt Services Company, which already provides these services for UC’s Deferred Compensation 457(b) Plan. The UC Office of the Treasurer will provide oversight responsibility for the assets and investment options of the DC and 403(b) Plans, as well as the 457(b) Plan. This change will not affect existing UC in-house services and operations of the UC Retirement Plan (UCRP), which provides regular pension benefits. Enhanced services, expanded investment options Recognizing that UC’s own system resources are operating at capacity, last year the Board of Regents approved partnering with an independent provider of account and recordkeeping services. The partnership is part of a long-term, multi-phased effort to improve services for DC Plan and 403(b) Plan participants, as well as the investment options available in those and the 457(b) Plans. “We are very pleased that with this transition, we will be able to offer a number of service enhancements and streamlined account management processes that faculty and staff have requested over the years,” said Judy Boyette, UC associate vice president for Human Resources and Benefits. “We also now have the opportunity to explore a wider range of investment options for participants,” she added. Among the enhanced service features that participants can expect are the following:
Fidelity selected on rigorous criteria Fidelity Investments Tax-Exempt Services Company was selected as the new services provider from a field of applicants in a competitive search process led by UC Human Resources and Benefits and the Office of the Treasurer. Bidding firms were evaluated on a number of criteria, notably long-term suitability, service level, and cost. Fidelity demonstrated particular strength in its sophisticated consumer web-based tools, its commitment to state-of-the-art technology, and its dedication to providing quality customer service. A joint UC and Fidelity team is currently finalizing the transition plan. Participants will receive detailed informational mailings about the transition and service changes in the coming months. UC-managed investment funds for the plans After the transition, participants will still be able to contribute to the six existing UC-managed funds. In addition, the Treasurer’s Office will review and update the overall investment choices, creating a set of prudently selected options within a range of asset classes called “Core Funds.” These Core Funds will be available in the DC, 403(b), and 457(b) Plans, and all communication and financial education efforts will focus on these funds. Says UC Treasurer David Russ, “Our goal is to build and maintain a set of Core Funds which addresses the needs of all our participants. We see this as a natural role in our on-going mission of serving the financial management needs of our community.” Once the Core Funds are selected, the Treasurer’s Office will monitor them on an on-going basis and will make changes if needed. Fidelity, Calvert Participants in Fidelity Investments and the Calvert Group Socially Responsible Investment Funds will continue to have access to those investment options. More information In the spring, DC Plan and 403(b) Plan participants will receive detailed transition information and service guides. As it becomes available, additional information will also be posted on the At Your Service website and announced in this newsletter, as well as in local faculty and staff communications. |
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