Investment Information for All Plans
To make choosing investments easier, the fund options will largely become the same for the Faculty Retirement Plan, Optional Retirement Plan, and 457 Deferred Compensation Plan after the transition.
Please note that the Minnesota State Retirement System, the pension plan available to Civil Service and Labor-represented employees, is a defined benefit plan and is not affected by the retirement plan transition.
Although the plan’s investments are now grouped by investing style, you are free to choose investments from any group and mix however you would like.
Target Date Funds
Some investors prefer a simple approach to choosing and managing their investments. The University of Minnesota Plans offer the JPMorgan Smart Retirement Blend funds. Each of these funds is professionally managed, age-based, diversified mix of stocks, bonds, and short-term investments—all in one fund.
Just pick the fund with the date closest to the year you expect to retire—that’s the fund’s target date. The fund will automatically adjust from higher risk to lower-risk investments as it approaches its target date and moves beyond. The result is you only have one fund to monitor. The expense ratios are as of September 30, 2019.
|Target Date Funds||Target Retirement Year||Expense Ratios for FRP and 457 Plan (as of 9/30/19)||Expense Ratios for ORP (as of 9/30/19)|
|JPMorgan SmartRetirement Blend Income Fund||On or before December 31, 2017||0.25%||0.29% (JIYBX)|
|JPMorgan SmartRetirement 2020 Fund||2018-2022||0.24%||0.29% (JSYRX)|
|JPMorgan SmartRetirement 2025 Fund||2023-2027||0.24%||0.29% (JBYSX)|
|JPMorgan SmartRetirement 2030 Fund||2028-2032||0.24%||0.29% (JRBYX)|
|JPMorgan SmartRetirement 2035 Fund||2033-2037||0.24%||0.29% (JPYRX)|
|JPMorgan SmartRetirement 2040 Fund||2038-2042||0.24%||0.29% (JOBYX)|
|JPMorgan SmartRetirement 2045 Fund||2043-2047||0.24%||0.29% (JMYAX)|
|JPMorgan SmartRetirement 2050 Fund||2048-2052||0.24%||0.29% (JNYAX)|
|JPMorgan SmartRetirement 2055 Fund||2053-2057||0.25%||0.29% (JTYBX)|
|JPMorgan SmartRetirement 2060 Fund||2058 and later||0.26%||0.29% (JAAYX)|
Core Investment Lineup
If you feel comfortable choosing investments on your own, Fidelity will also offer a core fund lineup of investments that represents the major asset classes. 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.
Use this list of funds to customize your own asset mix to something that makes sense for your own risk tolerance and your time left until retirement. The expense ratios are as of September 30, 2019.
|Asset Type||Fund Name||Expense Ratios (as of 9/30/19)|
|Money Market||Vanguard Federal Money Market (VMFXX)||0.11%|
|Stable Value||Minnesota Life General Account (not available in the 457 Plan)||n/a|
|Stable Value||Minnesota Life General Account Limited||n/a|
|Inflation Protection||Vanguard Inflation-Protected Securities Institutional Shares (VIPIX)||0.07%|
|U.S. Diversified Bond||Vanguard Total Bond Market Index Fund Institutional Plus Shares (VBMPX)||0.03%|
|Environmental, Social & Governance (ESG) Focused||Calvert Bond Fund R6 (CBORX)||0.46%|
|Environmental, Social & Governance (ESG) Focused||Calvert U.S. Large-Cap Responsible Index Fund R6 (CSXRX)||0.19%|
|U.S. Large Blend||Vanguard Institutional Index Fund Institutional Plus Shares (VIIIX)||0.02%|
|U.S. Small/Mid Blend||Vanguard Extended Market Index Fund Institutional Plus Shares (VEMPX)||0.05%|
|Developed Markets (non-U.S.)||Vanguard Developed Markets Index Fund Institutional Plus Shares (VDIPX)||0.04%|
|Emerging Markets||Vanguard Emerging Market Stock Index Fund Institutional Shares (VEMIX)||0.1%|
The plans will also offer an open self-directed brokerage account where you can invest in any mutual fund on the open market that is administered on Fidelity’s platform.
During the Early Choice Window in February 2020, you will have the opportunity to choose funds from the new fund lineup for contributions made after April 1, 2020, and any balances transferring to Fidelity.
If you do not choose investment options from the new lineup, your current account balances and future investment elections will automatically transfer to the investment option that the University of Minnesota believes most closely aligns with your current investment choices. Look for more information regarding the mapping strategy to be sent to you in January 2020.
A “blackout period” is the brief time when you won’t be able to exercise your rights otherwise available under University of Minnesota retirement plans. A blackout period is required to make sure that all information is transferred accurately from your current investment provider to Fidelity.
During this brief period of time you will not be able to direct or diversify investments in your individual accounts, or get a distribution or loan.
The blackout period will begin in mid- to late- March 2020, and is expected to end the week of April 12, 2020. More information and exact dates will be sent to you in January 2020.
On April 1, 2020, investment options not included in the University of Minnesota’s new fund lineup will no longer be available. At that time, all assets and future contributions in the closing investments will be automatically transferred (or mapped) into the new fund lineup. More information about the specifics of fund mapping will be communicated and posted in January 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 email@example.com.
For questions about your current account, contact your current plan’s vendor.