Dear Plan Participant,
Stanford University periodically reviews the Stanford Contributory Retirement Plan (SCRP) to make sure it continues to offer a range of high-quality investment options to help you meet your retirement and financial goals. The Retirement Programs Investment Committee (RPIC) and our independent third-party investment advisor, Aon Investments USA Inc., recently completed a comprehensive review of all the investment fund options available to you through the Plan (including the core index fund options and the target date funds). The analysis included a review of historic fund performance, qualifications of the fund management team, investment philosophy and process, risk level, fees, as well as the appropriateness of the glide path and asset diversification for the target date funds reviewed.
As a result of the review, the RPIC decided to:
- Replace the current Vanguard Institutional Target Retirement Funds with Fidelity Freedom® Index Funds – Premier Class effective December 3, 2021.
- Retain the existing Vanguard index funds offered under the core fund lineup.
We understand that the fees and expenses of the investments you select impact the overall returns of your portfolio. Therefore, we are pleased to announce the fees, or basis points under the new Fidelity target date funds are 33 percent lower than those under the current Vanguard Institutional Target Retirement Funds while maintaining a similar investment strategy, glide path, and risk level.
In the coming weeks, you will receive an e-mail with a link to a detailed Target Date Changes Guide from Fidelity with important dates and Plan activities, including information on your new investment options. Fidelity representatives will be available to answer any questions you may have, and additional virtual meetings and one-on-one consultations will be available beginning in October to assist you in making informed decisions. Please note that you do not need to take any action now.
If you would like to learn more about Fidelity’s Target Date Funds in the meantime, please visit http://go.fidelity.com/tdparticipant.
Sincerely,
Michelle F. Jaross
University Human Resources Associate Vice President, Benefits, Compensation, and Global HR
