University of North Carolina, Chapel Hill, is changing the investment option lineup of its defined contributions plans to a four-tiered lineup.
The changes are the result of the university's decision to consolidate its record keepers to two from four, keeping TIAA-CREF and Fidelity Investments and dropping Lincoln Financial Group and VALIC beginning July 1, according to Brian M. Usischon, associate vice president for human resources and university benefits officer.
The first tier consists of a Vanguard Group target-date fund lineup, while the second tier is called the “UNC risk-based models” tier, consisting of a total of 13 stand-alone investment options, covering domestic and international equity, fixed income, money market and real estate.
The third tier is the core lineup of the same 11 investment options offered by both TIAA-CREF and Fidelity, as well as 11 different investment options offered by TIAA-CREF and another 11 different options offered by Fidelity. The UNC Optional Retirement Program and UNC 403(b) plans each offer different specific options but the same number.
The fourth tier is a brokerage option.
The plans previously had hundreds of investment options among the four providers.
The changes also affect a university 415(m) plan. All plans have a combined $5.6 billion in assets.
Investment consultant CAPTRUST Financial Advisors assisted.
