Human Resources announces changes to retirement fund lineup
June 29, 2015
Two upcoming changes to Purdue's retirement fund lineup are being made as recommended by the University's retirement plan committee. The changes will be effective July 30.
"Monitoring the performance and cost effectiveness of the investment options is one of the important roles of the committee," says Eva Nodine, director of benefits. "Adjusting the lineup by staying on top of market changes and taking advantage of expense reduction opportunities is expected to save our faculty and staff participants nearly $500,000 over the course of the coming year."
Many Purdue retirement plan participants have relied upon the Vanguard Target Date fund to grow their retirement savings. Given the popularity of this investment option, Purdue is able to leverage the purchasing power and take advantage of a new share class offered by Vanguard for each of its target retirement funds. Target retirement funds are based off an investor’s age, and asset allocation becomes more conservative the closer an investor is to retirement. For more information on target retirement funds, visit https://investor.vanguard.com/mutual-funds/target-retirement/#/. This change will result in a significant reduction in expenses.
In addition, the PIMCO Total Return Fund is being removed as an investment option and will be replaced with the Voya Intermediate Bond Fund. Information about the new Voya fund can be found at http://investments.voya.com/Investor/Literature/Prospectuses-Annual-Reports/index.htm?psc=1539&p=37&tab=Mutual+Funds.
Retirement plan participants will receive emails and notices with additional information about the changes. Funds will be automatically transferred to the new accounts on July 30. Those who currently invest in the PIMCO fund will be able to move those funds to a different fund.
To review current investments and contribution amounts, employees can log in to Fidelity’s website at https://nbpreview.fidelity.com/public/nb/purdue/home.
