Why did the Task Force propose modifying the investment choices under the plan? Why will the number of options be reduced?
There are five different investment sponsors with whom participants can invest their voluntary retirement savings today (American Century, Fidelity Investments, Lincoln Financial Group, TIAA-CREF, and VALIC). Through the investment sponsors, participants have 381 investment alternatives. The University’s goal is to maintain a broad array of investment options with reduced participant costs. The current plan includes redundant investment options, higher fees, several underperforming funds, and too many choices, resulting in confusion as to account diversification. Eliminating investment options with overlapping investment styles will reduce confusion in the fund selection process for participants. Decreasing the number of investment options from 381 to 19 will allow effective communication on the individual investment options. The new menu will provide participants with the ability to monitor the fees they pay, reduce overall expenses, and diversify their portfolios from a broad spectru