Changes to target date funds mean lower fees for Retirement Savings Plan participants

February 04, 2020

Fidelity Freedom Index Funds offer a simplified investment solution — and now, a new share class with reduced annual fees — for participants in the Retirement Savings Plan of the Presbyterian Church (U.S.A.).

The Board of Pensions is pleased to announce a lower expense ratio for the Fidelity Freedom Index Funds (also called target date funds), effective February 6, 2020, for participants in the Retirement Savings Plan of the Presbyterian Church (U.S.A.). The expense ratio, which is the percentage of fund assets used to operate the fund, will be reduced from 0.12 percent to 0.08 percent. That means lower annual fees and greater savings for those who invest in these funds. The share class, fund names, and ticker symbols will also change.

Target date funds offer a simplified investment solution that automatically adjusts and rebalances throughout your lifetime, becoming more conservative as the target date (your anticipated retirement date) approaches. The new share class offers the same investment strategy and risk as the current share class.

Existing balances and contributions invested in the current share class will move to the new share class automatically when the market closes at 4 p.m. on February 6 (no action is required), and the transfer of balances will appear as an exchange on your account history and quarterly statement.

If you do not want these changes to take place, you must complete a change of investments before 4 p.m. ET on February 6. Log in to your NetBenefits account and select Change Investments from the Quick Links drop-down menu on the home page to get started. Or call Fidelity at 800-343-0860, Monday through Friday, 8:30 a.m. to 8 p.m. ET, to speak with a representative.

Retirement Savings Plan participants received a written notice about these changes from Fidelity. You can review the notice online by logging in to Net Benefits and selecting Plan Information and Documents from the Quick Links drop-down menu. On the next screen, choose Fund Changes (under Plan Changes).