The University of California is streamlining the menu of investment funds available to employees through the UC Retirement Savings Program (RSP) — 403(b), 457(b), and Defined Contribution Plans. The new structure offers investment options in a broad range of asset classes and is designed to make choosing investments easy, no matter what kind of investor you are — hands-on or hands-off.

Beginning July 2, the updated fund menu will consist of professionally managed funds that are monitored by the Office of the Chief Investment Officer of the Regents, including:

  • UC Pathway Funds — each fund has a diversified mix of assets with a target allocation that adjusts over time as each fund approaches its target date.
  • An updated menu of 15 additional investment funds representing a comprehensive range of asset classesParticipants currently invested in any of the affected funds will receive a personalized statement and Decision Guide in the mail in late April.

UC is streamlining the fund menu for several reasons. The first is to respond to what is often referred to as “choice overload” — many people are overwhelmed by the number of investment choices, and either do not participate in a plan at all or participate but do not make considered investment decisions. The streamlined fund menu will simplify the fund selection process and, it is hoped, motivate more people to participate and to participate more thoughtfully.

The new menu will also help RSP participants make better investment choices by reducing overlap between similar options. For those participants who desire more choice, the Fidelity BrokerageLink option will still be available. The smaller menu will also enhance UC’s ability to monitor funds and offer high-quality funds in a range of asset classes, with expenses that are generally lower than many similar publicly traded investment options.

If you are invested in funds that will no longer be included in the fund menu, you may need to take action by no later than 1 p.m., Thursday, July 2, if you want to transfer those investments to another fund. For details and instructions, please read the Decision Guide that you receive in the mail later this month, or visit UC Focus on Your Future. 

This story was originally published in UCnet.