The University of Illinois periodically reviews the Supplemental 403(b) Retirement Plan to ensure it continues to help you meet your retirement goals. We are pleased to announce that the most recent review resulted in an agreement with Fidelity Investments to change a selection of funds available under the 403(b) Plan to lower investment expense ratios.
The expense ratio is the annual cost to operate the fund, expressed in a percentage of total assets. These fees are deducted before the fund performance is calculated. The lower expense ratios of the new funds will mean less fees being deducted from the fund’s assets. Similar fee reductions have also taken place in previous years.
The new, lower expense ratio investment options will be available beginning October 4, 2019.
What does this mean for 403(b) participants?
For Plan participants who invest in these funds with Fidelity, the lower fees mean that more of your money can go to work for you in your 403(b) account. The current changes apply only to a subset of Fidelity funds. See the following documents for specific details about this change:
No action is required for participants who currently invest in one or more of these Fidelity funds through the 403(b) Plan. Fidelity will automatically transfer each fund to the equivalent lower expense ratio fund. Confirmation of the changes to the funds will be reflected in participants’ next quarterly statements.
However, participants who do not want these changes to take place must contact Fidelity and complete a change of investments.
Why might I consider participating in the 403(b) Plan?
With the availability of additional lower fee mutual funds, now might be the time to consider participating in the supplemental 403(b) plan. The Plan provides an opportunity to accumulate additional retirement funds as a supplement to your State Universities Retirement System (SURS) pension. You may begin participating in the Plan at any time by enrolling online.
Free one-on-one counseling sessions are available. View more information on Investment Vendor Visits, Counseling, and Seminars/Webinars.
Contact University Payroll & Benefits (UPB) or one of the investment vendors directly with questions or for help enrolling in the Plan.