Purdue Announces Recordkeeper Change

July 13, 2010 (PLANSPONSOR.com) –Purdue University has announced enhancements to its defined contribution plan and voluntary retirement savings program as the result of a recordkeeper change.

The change approved by the Board is the result of recommendations made by the Retirement Plan Review Task Force, a Universitywide group formed in the fall of 2008. A letter to University staff from the task force announces that effective January 1, the new recordkeeper will be Fidelity.  

The arrangement with Fidelity will offer lower administrative fees for faculty and staff and a more transparent fee structure, according to the letter. The plans will also be enhanced to offer a Roth account.  

Four tiers of investing to accommodate participants’ investment styles will be offered. Tier one consists of target-date funds, Tier two consists of index funds, Tier three is managed funds, and Tier four offers a self-directed brokerage window. Participants will also have access to personal financial assistance to help them make investment choices.  

The letter says participants will have the flexibility to keep their funds in their current TIAA-CREF and voluntary retirement accounts or transfer to the new investment options in January 2011.  

The trustees also approved an internal Retirement Plan Committee to select and monitor investment options offered by the plans. 

Earlier this year, the University reduced its retirement plan contribution and forced employees to kick in 4%, but made up the change by hiking salaries (see Purdue Reduces Retirement Contribution).