* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
Download proposed post card text - University of North Carolina
History of private equity and venture capital wikipedia , lookup
Private equity in the 1980s wikipedia , lookup
Annuity (American) wikipedia , lookup
Special-purpose acquisition company wikipedia , lookup
Stock trader wikipedia , lookup
Investor-state dispute settlement wikipedia , lookup
Corporate venture capital wikipedia , lookup
Private equity in the 2000s wikipedia , lookup
Interbank lending market wikipedia , lookup
Private equity wikipedia , lookup
International investment agreement wikipedia , lookup
Early history of private equity wikipedia , lookup
Private equity secondary market wikipedia , lookup
Investment banking wikipedia , lookup
History of investment banking in the United States wikipedia , lookup
Environmental, social and corporate governance wikipedia , lookup
Money market fund wikipedia , lookup
Fund governance wikipedia , lookup
Socially responsible investing wikipedia , lookup
Mutual fund wikipedia , lookup
Announcing Optional Retirement Program (ORP) Enhancements The University of North Carolina Board of Governors (BOG) is pleased to announce enhancements to the Optional Retirement Program (ORP). These enhancements to the ORP will allow the BOG to offer a broad spectrum of strategically selected investment options, better manage the investment options available to ORP participants and provide a basis for consistent decision making over time. In recent years, the proliferation of investment options within the investment industry has created an amount of choice that can be overwhelming to most investors. As part of the enhancements to the ORP, you can look forward to a new, simplified selection of ORP investment funds from which to choose. They will continue to be offered by the four current ORP carriers, AIG VALIC, Fidelity Investments, Lincoln Financial Group and TIAA-CREF. This new selection of funds provides a broad array of investment choices while providing comprehensive coverage along the risk/return spectrum. The ORP carriers are offering investment funds in each asset class that they consider among the best in class, based on competitive returns at competitive and reasonable fees. Reducing the number of funds offered under the ORP eliminates duplication and overlap of certain funds and allows for a process of continuous monitoring of each fund by the University. An overview of the following ORP enhancements is highlighted in the attached ORP Enhancements At-A-Glance. Streamline and offer new ORP Investment Funds Designate Lifecycle Funds as the new Default Option Offer access to new Mutual Fund Platforms provided by AIG VALIC, Lincoln Life and TIAA-CREF Offer Fidelity’s new retirement group annuity product Next Steps Step 1. For more details about the Optional Retirement Program changes, visit the UNC system benefits website at: www.northcarolina.edu/hr/benefits/benefits.cfm Step 2. To learn more about the new investment fund selections offered by your investment carrier, visit your ORP carrier’s dedicated website. You can visit the site any time beginning May 1, 2006. o AIG VALIC: www.aigvalic.com/UNCORP o Fidelity Investments: www.mysavingsatwork.com/uncorp o Lincoln Financial Group: http://enroll.newriver.com/Book_Comp.asp?BookId=1AWD185SDW554WEW463HGS3& o April 2006 TIAA-CREF: www.tiaa-cref.org/uncorp 1 Step 3. You may currently be allocated to an investment choice(s) that will no longer be available--a “deselected fund.” Beginning July 1, 2006, visit your ORP carrier’s website or contact your ORP carrier directly to redirect ORP future contributions and, if you so choose, reallocate your existing balances among the new investment funds. You will have until December 31, 2006, to redirect your future ORP contributions. If no change is made, your future ORP contributions, beginning January 1, 2007, will be automatically directed to the appropriate Lifecycle Fund (the new default option). o You may choose to keep your existing ORP money in any “deselected funds” (funds previously available under the ORP). However, new contributions to deselected funds will be prohibited after December 31, 2006. In the event existing funds are not part of the core fund lineup, each ORP carrier will provide a strategy to help you direct future contributions and, if you so choose, transfer existing balances to an approved fund with a similar objective. Types of Funds Each ORP carrier will continue to offer a variety of investment choices, within a broad array of fund categories. Each ORP carrier may have one or more funds available in each asset class from which to choose. These asset classes, established by the University, include fixed and variable account investment options and mutual funds. Refer to your ORP carrier’s website, as listed above, for details about the new investment fund choices. You will have an opportunity to attend meetings later this year to learn more about the ORP changes. Look for more information about the ORP changes soon. Background Information In 2004, an ORP Investment Advisory Committee was established to advise the system wide University Benefits Officer in the development of an ORP Investment Policy Statement that describes how the BOG and the University will carry out its fiduciary responsibilities for the program. The Advisory Committee, assisted by a national benefits consulting firm, is made up of University investments and benefits experts. In its continuing role, the Committee will provide assistance in reviewing and monitoring the ORP carriers, including their funds, fees and services. More information about the work of the Advisory Committee can be found on the UNC web site at: www.northcarolina.edu/hr/benefits/retirement/orp/enhancements.htm TYPES OF FUNDS AVAILABLE BY ASSET CLASS Principal Protection Money Market Stable Value/Fixed Account U.S. Fixed Income Core Fixed Income Inflation Indexed Bonds Lifecycle Funds U.S. Large Cap Equity Blend Value Growth Broad Market U.S. Mid Cap Equity Blend Value Growth Small Cap Equity Blend Value Growth International Equity International Global Specialty Funds Voluntary Supplemental Retirement Programs If you wish to supplement your retirement, you may continue to invest in voluntary supplemental retirement programs that are made available by your campus, such as the State’s 401(k), the State’s Deferred Compensation Plan (457) and various 403(b) plans. For more information about these voluntary programs, contact your University Benefits Office. April 2006 2 The University of North Carolina ORP ENHANCEMENTS AT-A-GLANCE Streamline and Offer New ORP Investment Funds Carriers under the ORP—AIG VALIC, Fidelity Investments, Lincoln Financial Group, and TIAA-CREF—will offer investment funds in each asset class and reduce the overall number of investment funds they offer to no more than 20 funds per carrier. The reduction in the number of investment funds allows the ORP to offer a streamlined core of investment options. Each ORP carrier was asked to ensure that each fund was appropriately categorized in its investment class, and was among the best in its class. Based on performance, competitive fees and other factors, the President has approved the new ORP investment fund lineup, as recommended by the ORP Advisory Committee and outside benefits consultant. Designate the Lifecycle Funds as the New Default Option A LIFECYCLE FUND is an investment that features an asset mix determined by the level of risk and return that is appropriate for an individual investor. Factors that determine this mix include an investor's age, appropriate level of risk, the investment's purpose and the length of time until the principal will be withdrawn. Lifecycle funds can feature conservative, moderate or aggressive growth strategies. Aggressive growth lifecycle funds are targeted to investors in their late twenties, while conservative growth lifecycle funds are targeted to investors in their late fifties. Offer Access to New Mutual Fund Platforms Provided by Three Carriers *Introducing Fidelity’s New Retirement Group Annuity Product ORP participants will have an opportunity to select from the new ORP funds beginning July 1, 2006. Lifecycle Funds offered by each of the four carriers will become the default fund in a situation where participants do not select a fund. Previously, money market funds were designated as the default fund. Participants investing in deselected funds who do not make a fund selection by December 31, 2006, will have all future contributions directed automatically to the appropriate Lifecycle Fund beginning January 1, 2007. A participant may elect to keep existing ORP money in funds that will no longer be available beginning July 1, 2006, or transfer those assets to other funds with similar fund objectives. AIG VALIC, Lincoln Financial Group and TIAA-CREF will offer new mutual fund platforms to provide a broader spectrum of strategically selected investment options. ORP participants will have an opportunity to select the new mutual funds beginning July 1, 2006. Fidelity Investments will begin offering a group annuity product through the Principal Financial Group (The Principal) for those ORP participants who retire and wish to safeguard retirement savings by receiving an income for life. This annuity option continues to be available through the other three ORP carriers as well as through Fidelity beginning July 1, 2006. *Subject to approval by the UNC Board of Governors on May 12, 2006. April 2006 3