This section 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. It also 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: Fidelity, TIAA, VALIC, and Vanguard.
Effective Jan. 1, 2018, 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 Fidelity and invested in the appropriate default investment fund. The default investment fund established under the Plan for Fidelity Investments, TIAA, VALIC, and Vanguard is the Vanguard Institutional Target Retirement Date Fund series.
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. 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 be a "qualified default investment alternative" (QDIA) as defined under the Employee Retirement Income Security Act of 1974 (ERISA). See details about the Vanguard Institutional Target Retirement Date Funds below.
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 or transfer your account balance to another investment carrier 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(s) 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, please contact the Benefits Office at (919) 684-5600.
The Vanguard Institutional Target Retirement Date Fund series has been designated as the default investment fund under the Plan. This fund series is available at Fidelity, TIAA, VALIC, and Vanguard. Your contributions will be invested in the appropriate age based fund based on the year you turn age 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 turn age 65, the fund will gradually and automatically shift from more aggressive investments (stocks) to more conservative ones (bonds and short-term reserves). Use this chart to determine which fund you will be invested in based on the year you turn 65:
|Date of Birth||Retirement Date Range||Fund Name||Ticker Symbol||Expense Ratio as of 9/31/2017*|
|1947 and Earlier||2010 and before||Vanguard Institutional Target Retirement Income Fund||VITRX||0.09%|
|1948 - 1952||2015 – 2020||Vanguard Institutional Target Retirement 2015 Fund||VITVX||0.09%|
|1953 - 1957||2020 - 2025||Vanguard Institutional Target Retirement 2020 Fund||VITWX||0.09%|
|1958 - 1962||2025 – 2030||Vanguard Institutional Target Retirement 2025 Fund||VRIVX||0.09%|
|1963 - 1967||2030 - 2035||Vanguard Institutional Target Retirement 2030 Fund||VTTWX||0.09%|
|1968 - 1972||2035 – 2040||Vanguard Institutional Target Retirement 2035 Fund||VITFX||0.09%|
|1973 - 1977||2040 - 2045||Vanguard Institutional Target Retirement 2040 Fund||VIRSX||0.09%|
|1978 - 1982||2045 - 2050||Vanguard Institutional Target Retirement 2045 Fund||VITLX||0.09%|
|1983 - 1987||2050 - 2055||Vanguard Institutional Target Retirement 2050 Fund||VTRLX||0.09%|
|1988 - 1992||2055 - 2060||Vanguard Institutional Target Retirement 2055 Fund||VIVLX||0.09%|
|1993 - 1997||2060 - 2064||Vanguard Institutional Target Retirement 2060 Fund||VILVX||0.09%|
|1998 and Later||2065 and beyond||Vanguard Institutional Target Retirement 2065 Fund||VSXFX||0.09%|
* Contact your investment carrier for a fund fact sheet or prospectus for additional details about a fund's fees and expenses.