Your University of Virginia Retirement Plan. Guiding you through exciting plan changes ahead

Transcription

1 Your University of Virginia Retirement Plan Guiding you through exciting plan changes ahead

2 It s a great time to review your University of Virginia retirement benefits The University of Virginia has selected Fidelity Investments and TIAA CREF as our ongoing retirement service providers, effective October 19, This change is based on the work of the UVa Retirement Administrative Committee and follows a review of the retirement programs and recommendation process in light of new federal regulations that require greater oversight of investments and plan administration of retirement plans. With this change, you will now have access to 94 new investment options through your Fidelity account, beginning October 5, Together with Fidelity and TIAA CREF, UVa will offer a new level of service and a renewed commitment to help you prepare for retirement. Use this guide as a resource to help you make the best investment decisions for your future. Review the changes and familiarize yourself with the key dates so that you understand how your account may change during the transition period. Table of Contents Page(s) Plan Changes 3 Important Dates 4 Investment Lineup Changes 5 6 New Investment Options 7 10 Next Steps 11

3 There are some exciting changes ahead A New Investment Lineup several changes to our lineup have been made in order to provide a diversified range of low cost mutual fund options from nationally recognized fund families, including Fidelity s mutual funds and target date funds along with 96% of the funds previously offered at Vanguard. Fidelity Freedom K Funds Fidelity s lower cost lifecycle funds. Loans Beginning October 19, 2011, UVa is offering the ability to take a loan through your Fidelity account. Loans were not previously available through Vanguard or Fidelity. In person Guidance* dedicated representatives from each of our retirement providers are ready to meet with you on Grounds to help with managing your retirement account(s). Fidelity Investor Center access the Richmond, Va., Investor Center with professionals trained to know all about the University of Virginia plans. *Although consultations are one on one, guidance provided by Fidelity is educational in nature, is not individualized, and is not intended to serve as the primary or sole basis for your investment or tax planning decisions.

4 Important dates Please review the calendar of events below so that you can understand how account activities will be affected during the blackout period and conversion to Fidelity. This calendar will help you plan ahead for any actions you may want to take. Date September and October Prior to October 4, 2011 October 4, p.m. October 5, 2011 October 19, 2011 Plan Activity One on one consultations and webcasts Fidelity will be on Grounds in September and October to help answer your questions about the plan changes. Visit for a complete schedule of events and links to on demand webcasts which you can view at your own pace, any time. Review your investments in your Fidelity account If you do not want your current investments to transfer to the new, lower cost investment options at Fidelity as shown on pages 5 6, you must make an exchange in your account before 4 p.m., Eastern time on October 4, Transition into new investments Assets held in one of the 16 Fidelity funds that are transferring into a new, lower cost share class are scheduled to be transferred according to the chart on pages 5 6. New funds available in your Fidelity account 94 Funds that were previously available through Vanguard are now available through your Fidelity account. See pages 7 10 for a complete list of these new investment options. Loans now available in your Fidelity account UVa is now offering the ability to have a loan against your Fidelity account; this was not an option previously. For more information or to ask questions, please call to speak with a Fidelity representative. The effective date of plan changes depends upon the accurate, timely transfer of data. If this does not occur, the delivery of services and investment options described here could be delayed.

5 Investment lineup changes There will be a new investment lineup available to all employees with Fidelity accounts. The new line up, available October 5, 2011, includes: The change of 16 existing Fidelity funds to lower cost funds Addition of 94 Funds previously available at Vanguard to the Fidelity platform New Fund Information The current suite of 12 Fidelity Freedom Funds is being removed and will be replaced by a suite of Fidelity Freedom K Funds, effective at 4 p.m. Eastern time on October 4, The Fidelity Freedom K Funds are a new series of Fidelity target date retirement mutual funds. All existing balances and future contributions in the Fidelity Freedom Funds will be transferred to the Fidelity Freedom K Funds shown in the chart below. The Fidelity Freedom K Funds have the same management team, investment objectives and invest in the same underlying funds as the Fidelity Freedom Funds. Because they are designed as Fidelity s institutional target date series of mutual funds, Fidelity Freedom K Funds have a lower expense ratio than the corresponding target date Fidelity Freedom Funds, resulting in lower expenses for plan participants. Similarly, there are four additional Fidelity Funds that will be replaced by Class K shares, resulting in lower expenses. How your Account is Affected At 4 p.m. Eastern Time on October 4, 2011, all existing balances and future contributions will be transferred as shown in the chart below. No action is required on your part to effect these changes. The transfer of balances will appear as an exchange in your account history and on your quarterly statement and you may receive a prospectus as a result of this transaction. The Fidelity funds with lower share classes are shown in the chart below. Current Investment Option Fidelity Blue Chip Growth Fund Expense Ratio: 0.94% Fidelity Contrafund Expense Ratio: 0.92% Fidelity Diversified International Fund 2 * Expense Ratio: 0.98% Fidelity Freedom Income Fund Expense Ratio: 0.46% Fidelity Freedom 2000 Fund Expense Ratio: 0.47% Fidelity Freedom 2005 Fund Expense Ratio: 0.58% Fidelity Freedom 2010 Fund Expense Ratio: 0.62% Fidelity Freedom 2015 Fund Expense Ratio: 0.63% Fidelity Freedom 2020 Fund Expense Ratio: 0.69% Fidelity Freedom 2025 Fund Expense Ratio: 0.73% New Investment Option Fidelity Blue Chip Growth Fund Class K Expense Ratio: 0.75% Fidelity Contrafund Class K Expense Ratio: 0.79% Fidelity Diversified International Fund Class K 2 Expense Ratio: 0.79% Fidelity Freedom K Income Fund Expense Ratio: 0.41% Fidelity Freedom K 2000 Fund Expense Ratio: 0.41% Fidelity Freedom K 2005 Fund Expense Ratio: 0.49% Fidelity Freedom K 2010 Fund Expense Ratio: 0.52% Fidelity Freedom K 2015 Fund Expense Ratio: 0.52% Fidelity Freedom K 2020 Fund Expense Ratio: 0.56% Fidelity Freedom K 2025 Fund Expense Ratio: 0.59%

6 Fidelity Freedom 2030 Fund Expense Ratio: 0.75% Fidelity Freedom 2035 Fund Expense Ratio: 0.77% Fidelity Freedom 2040 Fund Expense Ratio: 0.78% Fidelity Freedom 2045 Fund Expense Ratio: 0.79% Fidelity Freedom 2050 Fund Expense Ratio: 0.80% Not applicable Fidelity Freedom K 2030 Fund Expense Ratio: 0.61% Fidelity Freedom K 2035 Fund Expense Ratio: 0.63% Fidelity Freedom K 2040 Fund Expense Ratio: 0.63% Fidelity Freedom K 2045 Fund Expense Ratio: 0.64% Fidelity Freedom K 2050 Fund Expense Ratio: 0.65% Fidelity Freedom K 2055 Fund (New!) Expense Ratio: 0.67% Fidelity Low Priced Stock Fund 1 * Expense Ratio: 0.99% Fidelity Low Priced Stock Fund Class K 1 Expense Ratio: 0.85% The transfer of assets depends on the timely liquidation and delivery of assets from Vanguard. A delay may result in a change to the above noted dates. Expense ratio data as of August 16, This is a share class change 1 This fund assesses a short term trading fee of 1.50% for shares held less than 90 days. 2 This fund assesses a short term trading fee of 1.00% for shares held less than 30 days. *A short term trading fee will not be charged as part of this reallocation but existing short term trading fee periods (if any) will move from the transferring fund to the Class K fund. If you request a change either before or after this transition without satisfying the required holding period, you may incur a short term trading fee.

7 New investment options available through Fidelity Along with the funds mentioned in the chart under new investment options above, you will now have access to 94 additional funds through your Fidelity account that were previously available through Vanguard. These funds will be available through your Fidelity account beginning October 5, To invest in any of these funds, obtain additional information about these funds or if you have any questions visit: or call to speak to a Fidelity representative. New Investment Option at Fidelity Fidelity Managed Income Portfolio Invesco Real Estate Fund Institutional Class Keeley Small Cap Value Fund Class I MainStay High Yield Corporate Bond Fund Class I Northern Trust Emerging Markets Equity Index Fund 1 PIMCO High Yield Fund Administrative Class Thornburg International Value Fund Class R5 Vanguard Admiral Treasury Money Market Fund Investor Class 4 Vanguard Asset Allocation Fund Investor Vanguard Balanced Index Fund Signal Vanguard Capital Opportunity Fund Admiral 1 Vanguard Capital Value Fund Investor Vanguard Convertible Securities Fund Investor 1 Vanguard Developed Markets Index Fund Investor 2 Vanguard Diversified Equity Fund Investor Vanguard Dividend Appreciation Index Fund Investor Vanguard Dividend Growth Fund Investor Vanguard Energy Fund Admiral 1 Vanguard Equity Income Fund Admiral Vanguard European Stock Index Fund Signal 2 Vanguard Explorer Fund Admiral Vanguard Extended Market Index Fund Investor Vanguard FTSE All World ex US Index Fund Investor 2 Vanguard FTSE Social Index Fund Investor Vanguard Federal Money Market Fund Investor Class 4 Vanguard GNMA Fund Admiral Vanguard Global Equity Fund Investor Vanguard Growth Equity Fund Investor Vanguard Growth Index Fund Signal

8 Vanguard Growth and Income Fund Admiral Vanguard Health Care Fund Admiral 1 Vanguard High Dividend Yield Index Fund Investor Vanguard High Yield Corporate Fund Admiral 3 Vanguard Inflation Protected Securities Fund Admiral Vanguard Institutional Index Fund Institutional Vanguard Intermediate Term Bond Index Fund Signal Vanguard Intermediate Term Investment Grade Fund Admiral Vanguard Intermediate Term Treasury Fund Admiral Vanguard International Explorer Fund Investor 2 Vanguard International Growth Fund Admiral 2 Vanguard International Value Fund Investor 2 Vanguard Large Cap Index Fund Signal Vanguard LifeStrategy Conservative Growth Fund Investor Vanguard LifeStrategy Growth Fund Investor Vanguard LifeStrategy Income Fund Investor Vanguard LifeStrategy Moderate Growth Fund Investor Vanguard Long Term Bond Index Fund Investor Vanguard Long Term Investment Grade Fund Admiral Vanguard Long Term US Treasury Fund Admiral Vanguard Mid Cap Growth Fund Investor Vanguard Mid Cap Growth Index Fund Investor Vanguard Mid Cap Index Fund Signal Vanguard Mid Cap Value Index Fund Investor Vanguard Morgan Growth Fund Admiral Vanguard PRIMECAP Core Fund Investor 3 Vanguard PRIMECAP Fund Admiral 3 Vanguard Pacific Stock Index Fund Signal 2 Vanguard Precious Metals and Mining Fund Investor 1 Vanguard Prime Money Market Fund Investor Class Vanguard REIT Index Fund Signal 3 Vanguard Selected Value Fund Investor 3 Vanguard Short Term Bond Index Fund Signal Vanguard Short Term Federal Fund Admiral Vanguard Short Term Investment Grade Fund Admiral

9 Vanguard Short Term Treasury Fund Admiral Vanguard Small Cap Index Fund Signal Vanguard Small Capitalization Growth Index Fund Investor Vanguard Small Capitalization Value Index Fund Vanguard STAR Fund Investor Vanguard Strategic Equity Fund Investor Vanguard Strategic Small Cap Equity Fund Investor Vanguard Target Retirement 2005 Fund Investor Vanguard Target Retirement 2010 Fund Investor Vanguard Target Retirement 2015 Fund Investor Vanguard Target Retirement 2020 Fund Investor Vanguard Target Retirement 2025 Fund Investor Vanguard Target Retirement 2030 Fund Investor Vanguard Target Retirement 2035 Fund Investor Vanguard Target Retirement 2040 Fund Investor Vanguard Target Retirement 2045 Fund Investor Vanguard Target Retirement 2050 Fund Investor Vanguard Target Retirement 2055 Fund Investor Vanguard Target Retirement Income Fund Investor Vanguard Total Bond Market Index Fund Signal Vanguard Total International Stock Index Fund Signal 2 Vanguard Total Stock Market Index Fund Institutional Vanguard U.S. Growth Portfolio Fund Admiral Vanguard U.S. Value Fund Investor Vanguard Value Index Fund Signal Vanguard Wellesley Income Fund Admiral Vanguard Wellington Fund Admiral Vanguard Windsor Fund Admiral Vanguard Windsor II Fund Admiral 1 This fund assesses a short term trading fee of 1.00% for shares held less than 364 days. 2 This fund assesses a short term trading fee of 2.00% for shares held less than 60 days. 3 This fund assesses a short term trading fee of 1.00% for shares held less than 365 days. 4 This fund is frozen to new investments. Keep in mind the chart above contains changes for all of the UVa Plans at Fidelity. Because each plan has a slightly different investment line up, you may not be eligible to invest in all of the options shown above. Once the blackout period is complete, your account through Fidelity NetBenefits will show the specific fund list available to you at a plan level.

10 Next steps Review your investments Review the Investment Guide brochure included in this packet Attend a Webcast Meet with a Fidelity Workplace Planning and Guidance Consultant Register your e mail address online If you do not want your existing or future contributions to transfer to the new, lower cost Fidelity funds, you must contact Fidelity before 4 p.m. Eastern Time on October 4, 2011 and request a change. The accompanying brochure in this packet contains the new investment lineup offered through Fidelity. In this brochure you will find complete descriptions for all investments offered in the plans as of October 5, Visit for the most upto date schedule for events on Grounds plus links to view a prerecorded session at your own pace. Call Fidelity at , Option 1, or visit to schedule a one on one appointment at a time that s convenient for you, or if you live or work near the Richmond area, visit the Fidelity Investor Center in Glenn Allen, Va. Share your e mail address in your online account in order to receive important benefits information electronically. Log on to your account at Go to Your Profile and click on Address. Before investing in any investment options, please carefully consider the investment objectives, risks, charges, and expenses. For this and other information call Fidelity at or visit for a free mutual fund prospectus or, if available, a summary prospectus. For information on fixed annuities, contact Fidelity to request a fact sheet. Read them carefully before you invest. Keep in mind that investing involves risk. The value of your investment will fluctuate over time and you may gain or lose money. It is your responsibility to select and monitor your investments to make sure they continue to reflect your financial situation, risk tolerance, and time horizon. Most investment professionals suggest that you reexamine your investment strategy at least annually or when your situation changes. In addition, you may want to consult an investment adviser regarding your specific situation. Be sure you understand the plan guidelines and impact of taking a loan before initiating a loan from your plan account. Please be sure you understand the tax consequences of any withdrawal from the plans. This document provides only a summary of the main features of the University of Virginia Retirement Plans, and the Plan documents will govern in the event of any discrepancy. Unless otherwise noted, transaction requests confirmed after the close of the market, normally 4 p.m. Eastern time, or on weekends or holidays, will receive the next available closing prices. The investment options available through the plan reserve the right to modify or withdraw the exchange privilege. For a mutual fund, the expense ratio is the total annual fund or class operating expenses (before waivers or reimbursements) paid by the fund and stated as a percentage of the fund's total net assets. Expense ratios change periodically and are drawn from the fund s prospectus. For more detailed fee information, see the fund prospectus or annual or semiannual reports.

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