On January 1, 2020, there will be several important changes to the UC Pathway Funds, the target date investment series available to participants in the Retirement Savings Program (403(b), 457(b) and DC Plans).
- The UC Pathway 2015 Fund (“2015 Fund”) will no longer be available following its merger into the UC Pathway Income Fund (“Income Fund”).
- A new fund, the UC Pathway 2065 Fund (“2065 Fund”), will be available for investing.
The UC Pathway Fund series is designed to evolve over time, transitioning the nearest-dated fund into the UC Pathway Income Fund five years after its target retirement year.
Additionally, the series will introduce new funds that meet the needs of young savers with long investment horizons.
UC PATHWAY 2015 FUND WILL MERGE INTO THE INCOME FUND AND NO LONGER BE AVAILABLE
The 2015 Fund has reached its target retirement date and will close on December 31, 2019 at 1:00 p.m. PT and then merge into the Income Fund. All existing balances and future contributions will transfer to the Income Fund.
The Income Fund is the most conservative UC Pathway Fund, which aims to help preserve your savings, but still seeks growth for a retirement that may last for decades. It’s also designed to help support your retirement income strategy.
If you are invested in the 2015 Fund and do not want your account balances and/or future contributions to transfer to the Income Fund, you must take action before the 2015 Fund closes.
- Transfer your existing balance in the 2015 Fund to another investment option in the Plan.
- If you are making contributions to the 2015 Fund, update your contribution elections.
- Make your investment changes at www.netbenefits.com or by calling Fidelity® Retirement Services at 1-866-682-7787.
UC PATHWAY 2065 FUND TO BE INTRODUCED
The UC Pathway 2065 Fund will be a new investment option beginning January 1, 2020. The 2065 Fund is designed for participants in the earlier stages of their retirement journey who plan to begin drawing from their retirement savings around 2065. It will also serve as the new default fund for participants born on or after January 1, 2000.
If you were born on or after January 1, 2000, and are invested by default in the 2060 Fund (you were automatically placed in the 2060 Fund because you did not make an investment election), contributions made after December 31, 2019 at 1 p.m. PT, will be invested in the UC Pathway 2065 Fund. Your existing balance will remain in the 2060 Fund.
If you are invested in the 2060 Fund by default and do NOT want your future contributions to be invested in the 2065 Fund, you must take action before 1:00 p.m. PT on December 31, 2019. You can select a different investment option(s) at www.netbenefits.com or by calling Fidelity® Retirement Services at 1-866-682-7787.
NO ACTION REQUIRED
As a reminder, no action is required on your part unless you prefer to invest your existing balances and/or future contributions differently than described above. We encourage you to take this opportunity to review your investment selection and contribution rate to ensure that they align with your retirement goals.