What: Effective January 1, 2019, the default fund for HCSP is changing to an age-appropriate Retirement Strategies fund.
Action Required: No
Key Dates: January 1, 2019
Impacted Audiences: All new hires with the MERS Health Care Savings Program
For More Information: MERS Service Center – 800.767.MERS (6377)
Key Information:
Effective January 1, 2019, the default fund for HCSP is changing to an age-appropriate Retirement Strategies fund. There are several reasons for this change:
- Our data indicates that participants rarely move out of the default fund, which does not change or rebalance as the participant moves closer to retirement age. The Retirement Strategies fund will automatically adjust participants’ investment allocations over time – moving them to more age-appropriate funds as retirement nears.
- Retirement Strategies funds have lower investment fees – this means more of participants’ money is being invested, increasing their overall account balance at separation of employment.
All new hires on or after January 1 will be defaulted into this fund.