Upcoming Changes (May, 2017)
Learn more about the upcoming changes to the Default Investment Options effective May 9, 2017 below.
This notice describes how your contributions to the Faculty and Staff Retirement Plan ("the Plan") will be invested if you have a payroll deduction set up to contribute but do not choose an investment carrier or do not select specific investment funds and describes your rights and responsibilities in connection with default investments. You are eligible to make voluntary contributions in the Faculty and Staff Plan regardless of whether you are exempt or non-exempt staff.
Your Right to Direct Investments
You have the right to direct contributions for investment into one or more of the plan's approved investment carriers. Each investment carrier offers a broad range of investments, intended to allow you to achieve a diversified portfolio. The approved investment carriers are: Vanguard, VALIC, Fidelity Investments, and TIAA.
If you have a payroll deduction set up to contribute or will start receiving Duke's contribution but do not select an investment carrier for contributions, contributions will be automatically deposited with Vanguard and invested in the appropriate default investment fund.
If you select an investment carrier but do not make investment elections with that investment carrier, contributions will be automatically invested in the default investment fund established under the Plan for that carrier. Contributions invested in a default investment fund will remain invested in the default fund until you direct otherwise. You may transfer your contributions to other investment options with any approved investment carrier(s) at any time and without incurring financial penalty. However, the value of your account at the time of transfer is based on current market value and is subject to any gains or losses. Additional information about transfer of funds is available under Transfer Funds.
It is intended that the default investment fund for each investment carrier be a "qualified default investment alternative" (QDIA) as defined under ERISA. Details about the default investment funds established under the Plan for each investment carrier are included in this notice.
Understanding Your Investments
You should consider the investment objectives, risks, charges and expenses carefully before investing. The fee disclosure information which includes fees and services associated with the plan is available under Investment Performance. This disclosure is intended to provide you with important information about your retirement plan investment options.
You may also obtain a prospectus from your investment carrier for any investment fund. The prospectus will contain detailed information. If you invest in a target retirement fund, either by default or by affirmative election, the risks of each target retirement fund are the same as those of the underlying mutual funds in which they invest. The net expense ratio includes fees for the target retirement fund and fees for the underlying funds; each target retirement fund indirectly bears its pro rata share of the fees and expenses incurred by the underlying funds.
Learn More... Contact Your Investment Carrier
You may change your investment selections at any time by contacting the investment carrier directly. Contact information for each investment carrier is provided here. You may change your investment carrier election for future contributions by logging on to Retirement Manager.
Please contact your investment carrier to make changes to your current investment elections. It is strongly recommended that you review the investment objectives, risks, charges, and expenses prior to making an investment decision. This information can be found in each fund's prospectus.
If you have questions regarding this notice, please contact the Benefits Office at (919) 684-5600.
|Default Fund||Description and Investment Objective||Fund Name/Net Expense Ratio1|
Vanguard Target Retirement Fund
|Using your date of birth, your balance will be placed in the appropriate age-based fund using an estimated retirement age of 65. These funds seek to provide capital appreciation and current income consistent with their current asset allocations. Once your money is invested in the fund with the date that is closest to the year when you expect to retire, Vanguard's professionals do the rest. The fund will gradually and automatically shift from more aggressive investments (stocks) to more conservative ones (bonds and short-term reserves).||Target Retirement Income 0.14%
Target Retirement 2010 0.14%
Target Retirement 2015 0.14%
Target Retirement 2020 0.14%
Target Retirement 2025 0.15%
Target Retirement 2030 0.15%
Target Retirement 2035 0.15%
Target Retirement 2040 0.16%
Target Retirement 2045 0.16%
Target Retirement 2050 0.16%
Target Retirement 2055 0.16%
Target Retirement 2060 0.16%
T. Rowe Price Retirement Fund
|Using your date of birth, your balance will be placed in the appropriate age-based fund using an estimated retirement age of 65. These funds seek to achieve a high total return as is consistent with its asset allocation until the approximate target year. As these funds approach their target year, the funds will decrease their emphasis on growth of capital and increase their emphasis on current income.||T. Rowe Price Retirement Income 0.57%
T. Rowe Price Retirement 2005 0.60%
T. Rowe Price Retirement 2010 0.59%
T. Rowe Price Retirement 2015 0.62%
T. Rowe Price Retirement 2020 0.66%
T. Rowe Price Retirement 2025 0.69%
T. Rowe Price Retirement 2030 0.72%
T. Rowe Price Retirement 2035 0.74%
T. Rowe Price Retirement 2040 0.76%
T. Rowe Price Retirement 2045 0.76%
T. Rowe Price Retirement 2050 0.76%
T. Rowe Price Retirement 2055 0.76%
T. Rowe Price Retirement 2060 0.76%
Fidelity Freedom Fund®
|Using your date of birth, your balance will be placed in the appropriate age-based fund using an estimated retirement age of 65. These funds invest in a diversified portfolio of other Fidelity mutual funds. Fund assets are allocated more aggressively the farther away the retirement target date and gradually become more conservative by reducing their equity allocations and increasing their fixed income and short-term holdings as the target date approaches. They seek to provide high total return until the target date. After reaching the target retirement date, these funds seek high current income, and as a secondary objective, capital appreciation.||Freedom K® Income Fund 0.44%
Freedom K® 2005 Fund 0.49%
Freedom K® 2010 Fund 0.53%
Freedom K® 2015 Fund 0.56%
Freedom K® 2020 Fund 0.58%
Freedom K® 2025 Fund 0.61%
Freedom K® 2030 Fund 0.65%
Freedom K® 2035 Fund 0.67%
Freedom K® 2040 Fund 0.67%
Freedom K® 2045 Fund 0.67%
Freedom K® 2050 Fund 0.67%
Freedom K® 2055 Fund 0.67%
Freedom K® 2060 Fund 0.67%
TIAA Lifecycle Funds, Institutional
|Using your date of birth, your balance will be placed in the appropriate age-based fund using an estimated retirement age of 65. These funds seek high total returns over time through a combination of capital appreciation and income. Each fund's target asset allocation percentage automatically changes over time to become more conservative by gradually reducing the allocation to equity funds and increasing the allocation to fixed-income and short-term funds.||Lifecycle Retirement Income 0.37%
Lifecycle Retirement Fund 2010 0.37%
Lifecycle Retirement Fund 2015 0.38%
Lifecycle Retirement Fund 2020 0.40%
Lifecycle Retirement Fund 2025 0.41%
Lifecycle Retirement Fund 2030 0.42%
Lifecycle Retirement Fund 2035 0.43%
Lifecycle Retirement Fund 2040 0.44%
Lifecycle Retirement Fund 2045 0.45%
Lifecycle Retirement Fund 2050 0.45%
Lifecycle Retirement Fund 2055 0.45%
Lifecycle Retirement Fund 2060 0.45%
- These are net expense ratio as of 9/30/2016. Contact your investment carrier for fund fact sheet or prospectus for additional details about a fund's fees and expenses.