Faculty and Voluntary Retirement Plan Transition

The University is moving the Faculty Retirement Plan (FRP), Optional Retirement Plan (ORP), and the 457 Deferred Compensation Plan (457 Plan) to a single service provider for new contributions, Fidelity Investments, on April 1, 2020.

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Why Are The Plans Transitioning to One Service Provider?

In order to meet retirement plan best practices, the University of Minnesota's fiduciary body, the Retirement Plan Governance Committee (RPGC), went through a process of due diligence to review its benefit plans and compare them to other higher education institutions.

The RPGC determined that moving to a single service provider and simplifying the investment fund lineup would best meet its objectives of improving the retirement plan experience for employees. Through that process, the University chose Fidelity Investments to be the sole service provider of retirement contributions after April 1, 2020.

The benefits of the transition to Fidelity include making plan provisions more understandable and accessible, promoting and improving education and one-on-one consultations, and restructuring and simplifying the fund lineup.

What Will Happen After The Transition

There are a number of key changes to the retirement plans to be aware of:

  • All new contributions after April 1, 2020, will go to a Fidelity account.
  • Some current balances will transfer automatically to Fidelity during the transition. Not every balance will transfer automatically, so please see this chart of what is transferring automatically or search for your plan or vendor to see how your current balance will be handled.
  • Simplified fund choices. Currently there are hundreds of investment options to choose from among many plan service providers. By having one plan service provider, the University is simplifying your investment choices while still giving you a variety of choices among many asset classes.
  • Online transactions. Before the transition, you had to conduct most plan transactions by filling out paper forms. With Fidelity, you can change your investments and choose your beneficiaries all online for the Faculty Retirement Plan. For the ORP and 457 Plans you can also enroll and change your contribution rates online.

You can find considerations for retirees, beneficiaries, and former employees here.

What Is Staying the Same

There are a lot of changes to highlight with the transition to Fidelity, but here is what is not changing:

  • The Minnesota State Retirement System, also known as the MSRS, is not affected by the transition to Fidelity. The MSRS is the primary retirement plan for Civil Service and Labor-represented employees (who are not Faculty).
  • The University of Minnesota’s contributions to the primary retirement plans for all employee groups will not change.
  • The Minnesota Life General Account and General Account Limited funds will continue to be fund options in the plans as before.

Timeline

More information will be added to this site and communicated to employees as it becomes available.

Date          What to look for Action Steps
October 2019
  • Initial transition announcement
  • Fidelity representatives during the benefits fairs
  • Review all materials carefully
  • Visit Fidelity at benefits fairs for more information
  • Check which accounts you have with plan vendors
January 2020
  • Transition materials will be sent out
  • Fidelity will be onsite with seminars
  • Review your transition materials
  • Attend a Fidelity seminar or Help Desk
February 2020
  • Early Choice Window will be open
  • Select investments for your new Plan account at Fidelity
March 2020
  • Blackout period begins

 

  • If you need to make changes to your accounts, make sure you do so through your current provider prior to this date
April 2020
  • April 1 - assets will transfer to Fidelity
  • Week of April 13, 2020 - all plan services will be available through Fidelity
  • Begin using Fidelity's retirement planning resources by visiting NetBenefits.com/AtWork

 

 

Find Information by Plan Type

Find Information by Current Plan Vendor

 

 

 

Find Help

You can contact University Benefits by calling 4-UOHR (612-624-8647 or 800-756-2363) and select option 1 or you can send an email to benefits@umn.edu.

For questions about your current account, contact your current plan’s vendor.