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[Updated September 22, 2005]
Q Why is UC making this change?
A To provide the kinds of improved and expanded account services that many participants have been requesting for some time. UC systems and administrative resources are operating at maximum capacity, and the Regents made a business decision to make this transition to avoid delays in providing the industry-standard services that faculty, staff, and retirees want.
Q What's better for me with this change? What improvements will I see?
A Service enhancements such as a single website for managing your accounts; business day customer phone service access at Fidelity from 5 a.m. to 9 p.m. Pacific Time; daily rather than monthly account valuation; faster turnaround for plan transactions (days instead of weeks or months); planning calculators and other web tools; and quarterly statements showing all your DC, 403(b), and 457(b) plan activity. For more information see End of Transition Mailer for Faculty and Staff / for Retirees and Inactives.
Q How does this change affect the UC Retirement Plan (UCRP) --my defined benefit plan, my pension, etc.?
A This change will not affect UCRP, your CAP, pension checks, or other distributions from UCRP.
Q Will Fidelity now own or manage all our plans and funds?
A No. We are transitioning only participant services, recordkeeping, and transactional operations to Fidelity. UC will continue to administer the plans and be responsible for plan development and policies; and the UC Treasurer's Office will oversee the assets and investment options of the plans.
Q What are my investment options?
A You may now invest in an expanded group of Core Funds managed by the UC Treasurer's Office.
- Savings Fund
- Insurance Company Contract Fund (ICC)
- Equity Fund
- Bond Fund
- Balanced Growth Fund
- TIPS (Treasury Inflation-Protected Securities) Fund
- UC Domestic Equity Index Fund
- UC International Equity Index Fund
- UC Pathway Funds
- Dimensional Emerging Markets Portfolio
- Vanguard Real Estate Investment Trust (REIT) Index Fund
- Vanguard Calvert Social Index Fund
- Vanguard Small Cap Index Fund
See the FITSCo Investment Options brochure for more information.
Q Can I invest in the Fidelity or Calvert Funds?
A Yes. But you should be aware that these investment options are not reviewed by the Treasurer's Office. Other mutual funds are available if you establish a self-directed brokerage account at Fidelity (additional fee applies)
Q Will I have to pay any service fees or charges?
A Participants will continue to pay for plan expenses, such as administration and investment management, through the asset-based fees applied to each fund. These fees are charged before calculating the net asset values and may vary by fund.
The UC Funds (Pathway Funds, Balanced Growth Fund, Savings, Insurance Company Contract, TIPS, Domestic Equity Index Fund, Equity Fund, and International Equity Index Fund) have fees of 0.15 percent, or $1.50 per $1,000 invested.
The other Core Funds (three Vanguard funds and Dimensional Emerging Markets Portfolio) charge fees of 0.25 percent or $2.50 per $1,000 invested.
Participants who choose brokerage accounts pay a $25 per year per plan administrative fee plus asset-based fees, which vary. There may be other fees, as well. Read the contract carefully.
The quarterly $11.25 fee charged to 457(b) Plan participants has been eliminated.
Q I currently am getting systematic withdrawals. Will I need to make a new request?
A No. Your current distributions will continue.
Q Will my balance be the same when I first access my accounts at FITSCo?
A No. Daily valuation of your accounts began July 1, so your account balance may be different from the June 30 balance you will see on UC's Your Benefits Online. However, your final UC units or shares balance should be the same as your starting units/shares balance at FITSCo, assuming no new contributions from your payroll have been credited.
Q I don’t see a July contribution to the DC Plan/403(b) Plan on my final USRS statement or on FITSCo’s NetBenefits website. Has it been lost?
A No. Your July contribution is included in the final UCRS statement as the "6/05 payroll contribution" which represents June contributions paid in July. That contribution is included in the "transition" amount on the Retirement Savings Program (FITSCo). FITSCo has a different posting procedure, so the July contributions, paid in August, are posted August 1.
Q Is my account data secure?
A Yes. Because FITSCo's business depends upon the confidence of its clients, the company takes numerous steps to reinforce the need to treat all information as confidential. These steps include but are not limited to:
- Extensive training and background checks for employees. All FITSCo employees must be bonded.
- FITSCo uses the latest internet security, including 128bit encryption.
- Full-time, professional security personnel staff the FITSCo data centers 24 hours a day, 7 days a week.
- FITSCo has multiple levels of authorized access to client information that insure that staff have access to only the information they need to perform their job. Anyone accessing information is required to complete a nondisclosure agreement before access is granted.
Q Can FITSCo share my account information with their other divisions or outside companies to market their products?
A FITSCo cannot share data with another Fidelity entity unless you or the University has given specific approval. For example, a participant could authorize the sharing of information if the participant sets up a self-directed brokerage account with a Fidelity brokerage affiliate. But the use of FITSCo for record keeping and administrative services will not generate additional junk mail or SPAM for participants.