When you are automatically enrolled in the Boston University Retirement Plan your contributions are invested in the Vanguard Target Date Retirement Fund closest to the year in which you will turn age 65. However, you make changes to the investment allocation through 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 information on investment options available under the plan may be obtained directly Fidelity and/or TIAA. 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 by Boston University on a quarterly basis.
The Vanguard Target Date Retirement Funds are low-cost Target Date 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 Date 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.
You have the right under the Plans to direct the investment of your existing balances and future University contributions to any of the Plans’ available investment options, including the right to transfer out of the Plans’ Designated Fund to another investment option. Unless you provide alternative direction, the University contributions and/or the portion of your account that is currently invested in the Plans’ Designated Fund will continue to be invested in this option.
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 – 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 – Opening a brokerage account allows you 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.