Faculty Retirement Plan Transition
Important: The retirement plan transition is delayed until June 12, 2020. Please read this announcement the Retirement Plan Governance Committee sent regarding the delay here.
The Faculty Retirement Plan (FRP), the primary retirement account for all faculty members and Professional and Academic staff, will transition to Fidelity as the sole plan service provider on June 12, 2020. On this page, you will find information on how the transition will affect the FRP.
What Is Staying the Same
- University and employee contribution rates. If you started at the University on or after January 2, 2012, you contribute 5.5% of your covered salary and the University contributes 10%. Academic employees who started before that date contribute 2.5% of covered salary while the University contributes 13%.
- Minnesota Life General Account and Minnesota Life General Account Limited. The University has worked with Securian and Fidelity so that we can continue to offer both of these investment options in the fund lineup.
- Vesting. All funds will remain immediately fully vested.
Streamlined Investment Offerings
To make your investment decisions easier while still offering a variety of choices 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
Most employees with an FRP balance will see their account balances automatically transferred to Fidelity during the transition. There are two exceptions to this:
- Balances made from contributions before June 30, 1989 will not transfer automatically. If you believe you made contributions before that date, please review your FRP account statements and find more information for your plan vendor.
- Any balance with TIAA will not transfer. Please see the TIAA page for more details.
Choose Your Investments
If you didn’t make an investment election for the new investment lineup during the Early Choice Window by March 17, 2020, your current balance and all future contributions will transfer according to the fund mapping strategy. Due to the transition delaying until June 12, more information on another window to make changes before the transition will be made available soon.
If you made contributions to the Faculty Retirement Plan prior to June 1, 1989, not all assets are moving to Fidelity. Please review your account and review the plan information for your vendor found the left-hand navigation.
Your contributions will be directed to your chosen investments in the new investment lineup at Fidelity starting with the paycheck nearest the transition date.
If your current beneficiary election on file includes a Social Security number (and your balance transfers to Fidelity) that election will transfer to Fidelity. If your beneficiary does not transfer or you wish to change your beneficiary, you can make that change at any time after the transition.
Beneficiary elections made during the Early Choice Window will only apply to balances at Fidelity. If you have balances in other vendors and would like to update your beneficiaries for all plan accounts, please make sure to do so through your current plan service provider. Read the beneficiary fact sheet (pdf) for more information.
Call Fidelity at 800-343-0860 for help or investment advice. To make an appointment with a Fidelity representative, call the Fidelity reservation line at 800-642-7131, go online to NetBenefits.com/UMN.
You can contact Total Compensation 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.