Optional Retirement Plan Transition
Important: The retirement plan transition is delayed until June 12, 2020. Please read this announcement the Retirement Plan Governance Committee sent about the delay here.
The Optional Retirement Plan (ORP) is one of the two voluntary retirement plans offered through the University that will transition to Fidelity as the sole service provider for new contributions on June 12, 2020. On this page, you will find information on how the transition will affect the ORP.
If you are a retiree, beneficiary, or former employee with a balance in the ORP, you can find more information on installment payments here.
What Is Staying the Same
- Employee contribution elections. Your ORP payroll deductions will continue without interruption.
- Option to invest in the Minnesota Life General Account and Minnesota Life General Account Limited. The University has worked with Securian and Fidelity to continue to offer the ML General Account and ML General Account Limited in the new fund lineup.
Streamlined Investment Offerings
To make your investment decisions easier while still offering a variety of investment options, the University will now 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.
Roth And Rollover Options
As of June 12, 2020, the University is adding some new plan provisions to the ORP.
- You will be able to make Roth contributions to the plan. Roth contributions are after-tax contributions, but the earnings on those contributions may be tax free if you meet certain conditions. You can discuss with a tax or retirement advisor to see if Roth contributions may be right for you.
- The ORP will also accept rollovers into the plan from other qualified retirement plans. A process to roll over funds from other qualified plans will be available to employees after the plan transition.
Your Current Account Balance
Your current ORP balance will not automatically transfer to Fidelity as part of the transition except for a few Securian assets* and all Deutsche assets. After the transition, contact your current vendor and Fidelity to determine your options for moving your current ORP balances to Fidelity if you want to consolidate accounts.
*Assets in the following funds at Securian will automatically transfer to Fidelity:
- Minnesota Life General Account
- Minnesota Life General Account Limited
- Minnesota Life Separate Account A
- Fund D - Ivy Funds VIP Balanced
- Fund D - SFT Core Bond Fund - Class 2
- Fund D - SFT Government Money Market Fund
- Fund D - Ivy VIP Growth - Class II
- Fund D - SFT Index 500 Fund - Class 2
- Fund D - Ivy VIP Small Cap Growth - Class II
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.
Starting with the paycheck closest to the transition, your contributions will be deposited in your Fidelity account. You can change the amount you contribute to the ORP online once the plan is live in mid-June 2020.
After the plan’s transition, new loans from the ORP will only be available from Fidelity. Securian and TIAA will no longer administer new loans. If you wish to take a new loan prior to the transition, you must initiate that process before the blackout dates.
Any outstanding loans from Securian will transfer to Fidelity. A separate letter will be mailed to participants with loans to provide more details regarding how the process will change. Any loans with TIAA prior to the transition will have the same payment instructions with TIAA.
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 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.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.