You choose how the contributions to your accounts—from both you and the University—will be invested from the investment fund sponsors: Fidelity Investments (Fidelity) and Teachers Insurance and Annuity Association (TIAA). Boston University assumes no responsibility for your choice of investments. Since you choose the investment options for your account, you are responsible for the financial results. The plan is intended to be a participant-directed plan as described in Section 404(c) of the Employee Retirement Income Security Act of 1974 as amended (ERISA) and Department of Labor regulations governing Section 404(c) plans. This means that fiduciaries of the plan are relieved of liability for any losses that are the result of investment instructions given by a participant or beneficiary under the participant-directed investment feature of the plan.
Before choosing an investment option, you should consult a professional financial advisor for investment advice and financial planning assistance. Further plan information may be obtained directly from the investment fund sponsors. You should read the prospectus or other plan information carefully before investing.
The Selected Investments have been specifically chosen by Boston University, as a result of a careful review, and provide participants with the option of managing their own asset allocations or allowing professional investment managers to balance the investments. The funds are professionally managed and monitored on a quarterly basis.
The Vanguard Target Retirement Funds offer “one-stop shopping”. They are low-cost Target Retirement Funds that correspond to a range of target retirement years or the year in which you will turn 65, and automatically rebalance between stocks and bonds to become more conservative as you approach retirement. The Target Retirement Funds are the plan’s Designated Default Investment. These investments are available through Fidelity. If you would like to elect these funds, you will have to establish an account with Fidelity.
Core Mutual Funds offer the flexibility to design a diverse portfolio without having to sort through many fund choices. Participants looking for a specific asset allocation or to complement their total portfolio of investments may be best suited to choose from among the Core Mutual Funds. These investments are available through Fidelity. If you would like to elect these funds, you will have to establish an account with Fidelity.
Core Annuity Accounts offer the opportunity to receive the assurance of a lifetime income in retirement. Choose either an investment option that’s principal protected or one that takes on risk for greater potential rewards. These investments are available through TIAA. If you would like to elect these funds, you will have to establish an account with TIAA.
BrokerageLink is designed for willing investors who prefer to exercise more control over their investments. Opening a brokerage account allows you to continue to invest your retirement savings in mutual funds that are not included in Boston University’s core investment lineup. While a brokerage account offers expanded flexibility, it comes with additional personal responsibility and risk. The University does not select or screen these investments; that task falls to you. These investments are available through Fidelity. If you would like to elect these funds, you will have to establish an account with Fidelity.
To obtain a detailed description of the funds offered through Fidelity and TIAA, you should contact Human Resources.