What's Changing and Why?
As part of the laboratory's continuing commitment to offer a comprehensive retirement readiness program for employees, we conduct regular reviews of our benefit offerings. Recently, the laboratory conducted an extensive evaluation of the retirement savings plans, focusing on investment options and recordkeeping services. The project was completed by members of laboratory senior leadership who were appointed to a committee responsible for conducting this review.
The evaluation identified opportunities for improvement in these areas. After much research and an extensive competitive bidding process, Fidelity Investments® was selected as the sole provider of retirement savings plan administration and recordkeeping services. The move to Fidelity will take place on February 2, 2015. This change will streamline plan administration, leverage the lab's organizational purchasing power and is expected to significantly reduce the expenses associated with investing. Lower expenses can ultimately increase your savings for retirement.
We will also be introducing a new menu of well-diversified, best-in-class investments from several investment providers. Today, your investment choices are limited to the funds offered by Fidelity, TIAA-CREF, Dreyfus, and T. Rowe Price. These companies provide not only investments, but also plan recordkeeping services, such as processing and recording account transactions, delivering retirement planning tools and other investment related educational services.
Once the move to Fidelity takes place on February 2, 2015, plan investment offerings and recordkeeping services will be unbundled. Fermilab retirement plan participants can expect the following benefits from this change:
- Streamlined Investment Line-Up - The review concluded that there are too many investment choices offered today, causing redundancy in fund offerings, participant confusion and incorrect utilization of many funds. As a result, we have chosen a new four-tiered investment line-up that will help you easily create an optimal investment mix to meet your specific savings goals and investing needs.
- Reduced Expenses - With the single recordkeeping platform and new investment line-up, the expenses and fees associated with investing in the plans are expected to be considerably lower for our employee participants. Lower fees and expenses can increase the return on your investment.
- Service Provider Change - Fidelity Investments® has been selected as the lab's sole provider of recordkeeping services. Dreyfus, TIAA-CREF, T. Rowe Price and Vanguard will no longer be Fermilab retirement plan providers. We expect a higher level of service, improved technology and better educational support.
- Mutual Fund Brokerage Option - For those who seek investment choices beyond the main investment fund line-up, a self-directed brokerage option will be available for participants through Fidelity. This option gives plan participants access to over 5,000 mutual funds.
Later this month, you will receive a detailed Transition Guide mailed to your home address that will further explain the new investment line-up, key dates and actions you need to take. The Transition Guide will also include specific transition information for participants with accounts held at Dreyfus, Fidelity, TIAA-CREF, T. Rowe Price and Vanguard.
