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UTRetirement Program Investment Fund Options

Frequently Asked Questions

Why is the change to the investment fund options occurring?
The streamlined fund line-up was developed to provide you an array of investments to help diversify your account according to your individual retirement planning needs, while offering an appropriate number that can be effectively monitored. The current number of investment offerings leads to employee paralysis in electing to participate in the voluntary retirement plans and also creates challenges in performing due diligence responsibilities.

This review was necessitated by the increasing regulatory environment.  Stringent rules about fund fee disclosures will become effective soon for certain plans.  Although our plans are not subject to those rules yet, it is likely that our plans will be subject to those rules in the future.  Offering a large number of funds increases the responsibility for the plan sponsor to monitor those funds and also increases the opportunity to not meet due diligence requirements. Therefore our commitment to ensuring the retirement plans remain compliant with the various regulations now and in the future, led to the current investment fund options.

How were the funds for the streamlined line-up selected?
The University of Texas System challenged its six approved Retirement Providers to develop a best-of-the-best fund line-up with regard to fees and fund performance while reducing redundancies in asset categories.  The Retirement Providers and UT System worked together in close partnership with an outside actuarial to develop a stream-lined list of funds.  All funds were selected in accordance with the University of Texas Investment Policy Statement, which is available at http://www.utsystem.edu/benefits/policies/840_Investment.pdf

What does this mean for me?
If you are currently contributing to a fund that will no longer be available after November 15th, 2011, your future contributions will be redirected to a fund that is most closely aligned with the investment objectives and management style of the discontinued fund.   If a closely aligned alternative is not available, the future contributions will be directed to another suitable fund.  You may choose to direct your future contributions to a different fund available within the UTRetirement Program by contacting your Retirement Provider and completing the necessary process.  Your existing balance will remain in the discontinued fund unless you contact your Retirement Provider and transfer that balance to a new fund.

Do I have any options if I want to continue contributing to the same mutual fund that will no longer be offered within the UTRetirement Program fund line-up?
Yes.  Some of the UTRetirement Program Providers offer a Self-Directed Brokerage Option (SDBO) where many mutual funds are offered. 

Do I need to take any action as a result of the change in investment fund options?
If you are satisfied with how your future contributions will be directed, then you do not need to take any action.  However, if you want your future contributions or your existing fund balances directed to a different fund within the UTRetirement Program, you will need to complete the fund selection process with your UT Retirement Provider. 

Can I move my existing funds into a different fund before the effective date of the fund changes?
Yes, you can move your money into any UTRetirement Program investment fund option, either before or after the streamlined fund offering is effective.

When should I expect the changes to be effective?
The changes will become effective on or close to November 15, 2011.  You will receive a letter directly from your UT Retirement Provider with details around September 15, 2011.

Who can I contact if I have questions or need assistance with my UTRetirement Program investment options?
Please contact your Retirement Provider if you have any questions or need assistance in changing your fund allocation, transferring your existing balances, or reviewing your overall retirement portfolio and investment objectives.