457 Deferred Compensation Plan Transition
The 457 Deferred Compensation Plan (457 Plan) is one of the two voluntary retirement plans offered through the University that will transition to Fidelity as the sole service provider for new contibutions on April 1, 2020. On this page, you will find information on how that transition will affect the 457 Plan.
If you are a retiree, beneficiary, or former employee with a balance, you can find information on installment payments here.
What Is Staying the Same
- Employee contributions. Your current 457 Plan contribution elections will continue without interruption through the transition.
- Minnesota Life General Account Limited. The University has worked with Securian and Fidelity to continue offering this investment option in the new fund lineup.
Streamlined Investment Offerings
To make your investment decisions easier while still offering a meaningful choice of investment options, the University will group funds by investing styles.
- Target Date Funds—this is a single diversified fund solution approach to investing. The University will offer age-based target date funds that will automatically adjust your investment mix as you get closer to the retirement date.
- Core Funds—You can choose your own mix of investments from this low-cost lineup of funds selected by the University to provide a broadly diversified set of core options across short-term investments, bonds, and stocks. This also includes two options that focus on investing in alignment with environmental, social and governance ("ESG") related principles. The Minnesota Life General Account and Minnesota Life General Account Limited from Securian will be available as part of the core funds.
- Fidelity BrokerageLink®—this solution provides more options to investing where you can choose your own mix of investments from thousands of mutual funds within a Fidelity self-directed brokerage account.
Your Current Account Balance
Assets held at Securian and Vanguard will transfer to the 457 Plan already available at Fidelity. TIAA balances will not move to Fidelity as part of the transition to Fidelity. Contact TIAA for information on what options are available for your account.
Choose Your Investments
Since the 457 Plan will have new investment options at Fidelity, we encourage you to make investment elections for your current balance and your future contributions during the Early Choice Window that will occur at Fidelity February 1 through March 20, 2020.
If you don’t make an investment election for the new investment lineup during Fidelity Open Choice Window by March 20, 2020, your current balance and future contributions will be invested according to the fund mapping strategy.
Starting with your April 8, 2020, paycheck, contributions will be deposited in your Fidelity account. You can change the amount you contribute to the 457 Plan online once the plan is live in mid-April 2020.
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 firstname.lastname@example.org.
For questions about your current account, call your current plan’s vendor.