You choose how the contributions to your accounts will be invested from among the investment options available to you under the Plan. Boston University has no responsibility for your choice of investments. Since you choose the investment options for your accounts, you have the responsibility 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 Plan recordkeeper. 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 are low-cost “Target Retirement Funds” that correspond to a range of target retirement years or 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 funds 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 – Choose either a guaranteed annuity which is principal protected and has a specified minimum interest rate or a variable annuity which does not guarantee principal or interest.* These investments are available through TIAA. If you would like to elect these funds, you will have to establish an account with TIAA.
* Although the investment options in the Plans are selected by the Boston University Retirement Plan Investment Committee, TIAA’s existing contracts require Boston University to offer the CREF Stock and CREF Money Market variable annuity options in order to offer the TIAA Traditional fixed annuity in the Plans. As a result, we recommend you exercise caution and periodically evaluate the appropriateness of your current investment allocations.
BrokerageLink 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 also comes with additional personal responsibility, risk and applicable fees. 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 investment options available, contact Human Resources.