UC streamlines Retirement Savings Program investment fund menu
UC is streamlining the menu of investment funds available through the UC Retirement Savings Program (RSP) — your 403(b), 457(b), and Defined Contribution Plans. The new structure offers investment options in a broad range of asset classes and is designed to make choosing investments easy, no matter what kind of investor you are — hands-on or hands-off.
Beginning July 2, 2015, the updated fund menu will consist of professionally managed funds that are monitored by the Office of the Chief Investment Officer of the Regents (CIO), including:
- UC Pathway Funds — each fund has a diversified mix of assets with a target allocation that adjusts over time as each fund approaches its target date and
- An updated menu of 15 additional investment funds representing a comprehensive range of asset classes
Participants currently invested in any of the affected funds will receive a personalized statement and Decision Guide in the mail in late April.
Why the streamlined fund menu?
UC is streamlining the fund menu for several reasons. The first is to respond to what is often referred to as “choice overload;” many people are overwhelmed by the number of investment choices, and either do not participate in a plan at all or participate but do not make considered investment decisions. Therefore, one goal of streamlining the fund menu is to simplify the fund selection process in order to motivate people to participate or to participate more thoughtfully.
The streamlined fund menu will also help RSP participants make better investment choices by reducing overlap between similar options. For those participants who desire more choice, the Fidelity BrokerageLink option will still be available. Finally, the smaller menu will enhance UC’s ability to monitor funds and offer high-quality funds in a range of asset classes, with expenses that are generally lower than many similar publicly traded investment options.
If you are invested in funds that will no longer be included in the fund menu, you may need to take action by Thursday, July 2, 2015, 1 p.m. (PT) if you want to transfer those investments to another fund. For details and instructions, please read the Decision Guide that will be mailed to you later this month or visit ucfocusonyourfuture.com.
For more information about the changes, read UCnet’s Q&A with Deputy CIO Arthur Guimaraes.
Fidelity will be offering classes on the fund menu changes. See this Link article for more information about the class and how to register.