Default Account Explained - 28.10.2012

Members of our Group Retiement Plan have an opportunity to tap into a structured retirement program that is an important part of overall compensation and is designed to help employees save for retirement. You even have the flexibility to determine how your contributions shall be invested so you can be comfortable knowing they work for you in a manner that suits your tolerance for risk.


However, if you do not direct your contributions to any particular investment(s), your contributions reside in our default account.


The default account is simply intended to hold employee contributions until the employee directs the provider as to where funds should be invested. (When you enrolled in our plan, you were asked to provide that direction; however, some employees did not do so.)


An employee who neglects to direct funds to a specific investment or portfolio may fail to realize their contributions' full earnings potential.

What to Do?


1. Review your plan – look at your most recent statement or visit your account on line (if you have that option). Determine whether or not you have funds in the default account. If so, do not keep them there! See next steps to determine how to direct your funds.


2. Take “investment personality questionnaire” When you enrolled in the plan, you were asked to answer a questionnaire that would help determine your investment “personality” or profile. Re-take this test because it will reveal whether or not you are a conservative, balanced, or aggressive investor based on your tolerance for investment risk. Once you know that, you can choose the funds that match your risk tolerance.


3. Provide direction for your contributions

Your statement and on-line resources should provide information on the individual funds or pre-determined portfolios available to you. Please ask your plan administrator for the paperwork to move your funds from the default account to the investment choices that are most likely to meet your retirement objectives. Alternatively, you can contact our provider at their customer service number.(See your statement or ask your plan administrator.)

Make sure your contributions reside in a fund that you decide is going to help you achieve your retirement objectives. Do not rely on the default account.