Massachusetts Institute of Technology, Cambridge, is overhauling the lineup of its 401(k) plan starting June 1, said a transition guide on the university’s website.
The changes, recommended by the university’s 401(k) plan oversight committee, are expected to reduce overall investment costs, simplify participant investment choices and position MIT to meet evolving 401(k) legal and regulatory standards, the transition guide stated.
The simplified lineup will consist of 26 core investment options, 17 of which are new. The new investment options are:
- Nine Vanguard Group index funds and a Vanguard money market fund;
- Two Dodge & Cox stock funds;
- A small-/midcap core equity fund managed by GW&K Investment Management;
- A large-cap growth equity fund managed by T. Rowe Price;
- A global real estate fund managed by AEW Capital Management;
- A high-yield bond fund managed by Wellington Management; and
- A core-plus bond fund managed by Prudential Fixed Income.
A Vanguard target-date series, three Vanguard index funds, a Vanguard inflation-protected bond fund, a Fidelity large-cap growth equity fund, a Dimensional Fund Advisors emerging markets equity fund and two custom funds managed by MIT will remain available under the new lineup. A brokerage account that provides access to more than 5,000 additional funds will also continue to be available to participants.
The university is removing more than 300 investment options from its core lineup.
Inquires to the benefits department were referred to the press office. A university spokeswoman could not immediately be reached for additional information.
MIT’s supplemental 401(k) plan had $3.6 billion in assets as of Dec. 31, 2013, according to its most recent Form 5500 filing.
