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Human Resources

Upcoming Retirement Plan Changes

We wanted to provide a preview of upcoming changes and enhancements to the Bowdoin College Retirement Plan, the Bowdoin College Tax Deferred Annuity Plan (403b Supplemental Plan) and the Bowdoin College Retirement Plan for Officers of Instruction and Officers of Administration (Frozen Officers Plan) that will go into effect as of market close on January 16, 2013.  All respective plan participants will soon  receive more detailed information directly from Fidelity Investments regarding the changes outlined below:

Bowdoin College Retirement Plan:

  • Spartan Emerging Markets Index Fund – Fidelity Advantage Class will be added as a new option to the investment core line-up.
  • Third Avenue Value Fund Institutional Class will be removed from the investment core line-up.  No new contributions will be allowed into this fund and will be directed to an age appropriate Freedom K Fund.  On March 18, 2013 any remaining balances in this investment option will be transferred to an age appropriate Freedom K Fund.
  • Four existing funds currently on the investment core line-up now qualify for a new share class with lower fees.  Vanguard Inflation-Protected Securities, Vanguard Wellesley Income Fund, Vanguard Wellington Fund and Vanguard Windsor II Fund will change from “Investor” share class to “Admiral” share class.

Bowdoin College Tax Deferred Annuity Plan (403b Supplemental Plan) and the Bowdoin College Retirement Plan for Officers of Instruction and Officers of Administration (Frozen Officers Plan):

  • Thirteen Freedom K Funds are being added to the Plan, replacing twelve Fidelity Freedom Funds and the Third Avenue Value Fund Institutional Class.  The new Freedom K Funds are a new lower-cost class of funds.  New contributions will not be allowed into the Third Avenue Value Fund and will be directed to an age appropriate Freedom K Fund.  On March 18, 2013 all remaining balances in the Third Avenue Value Fund will be transferred to an age appropriate Freedom K Fund.
  • Eight Fidelity Spartan investment options are being added to the Plan to be available for new contributions and exchanges.
  • The share class of thirty-six existing funds will change, offering you the same investment but with lower overall expenses.

The fund additions and new lower-cost share class changes outlined above do not require you to do anything – just know that these changes are taking place at the market close of January 16, 2013.  Share class changes will be reflected on your quarterly statement showing a transfer from existing funds into the new lower-cost class of funds.

If you currently direct contributions to Third Avenue Value Fund in any of the three plans and you do not wish future contributions to be re-directed to an age appropriate Freedom K Fund, you must update your allocations prior to 4:00 p.m. on January 16th by calling Fidelity toll-free at 1-800-343-0860 (Monday through Friday) or by logging on to Fidelity NetBenefits at www.fidelity.com/atwork.  If you do not wish balances remaining in the Third Avenue Value Fund to be transferred on March 18, 2013 as outlined above you must contact Fidelity to request an exchange prior to 4:00 p.m. on March 18, 2013.

If you have any questions, please don’t hesitate to contact Tama Spoerri (x3838 / tspoerri@bowdoin.edu) or Mary Cote (x3033 / mcote@bowdoin.edu).  Thank you.

Fidelity Investments correspondence re:

Bowdoin College Retirement Plan 401(a)

Bowdoin College Tax Deferred Annuity Plan (403b Supplemental Plan)

Bowdoin College Retirement Plan for Officers of Instruction and Officers of Administration (Frozen Officers Plan)