Upcoming Investment Changes to the PCA Retirement Plan
The staff and board of PCA Retirement & Benefits, Inc. (RBI) regularly monitor the Money Market Fund as well as the other investment options within the PCA Retirement Plan. Occasionally this review leads us to evaluate new investment options that may better serve our participants’ needs. Recently regulatory changes to money market funds as well as legislative changes affecting collective investment trusts have caused us to reevaluate our most conservative investment option within the PCA Retirement Plan. Upon completion of due diligence research by our investment consultant and staff, the board of directors approved a recommendation from the Investment Committee to eliminate the Money Market Fund and replace it with another similar type investment. This new conservative investment option is the Stable Value Fund.
Our Stable Value Fund is an investment option that seeks to provide safety of principal and a stable credited rate of interest, while generating competitive returns over time compared to other comparable investments. This fund will be managed by Galliard Capital Management and is primarily invested in high quality, diversified fixed income investments that are protected against interest rate volatility by contracts from banks and insurance companies. Both stable value funds and money market funds seek principal preservation. However, stable value funds have historically produced higher returns than money market funds with less volatility.
Summary of changes to the PCA Retirement Plan
- Adding a new investment option – The Stable Value Fund on Monday, May 1, 2017
- Removing an investment option – The Money Market Fund on Monday, May 1, 2017
- New restrictions will apply to transfers from the Stable Value Fund to the Conservative Bond Fund or to the Self-Directed Brokerage Account (SDBA). If you want to move money to the Conservative Bond Fund or the SDBA, you must first transfer assets to another PCA Retirement Plan investment option and the assets must remain in the fund for at least 90 days.
- Any money invested in the Money Market fund as of Monday, May 1, 2017 will be moved to the Stable Value Fund as of the close of the market on Monday, May 1, 2017
- Any future investment election in the Money Market as of Monday, May 1, 2017 will be moved to the Stable Value Fund as of the close of the market on Monday, May 1, 2017
Please contact us at firstname.lastname@example.org or 800-789-8765 Monday through Friday, 8:00am to 5:00pm EST to ask questions not addressed on this website.
Frequently Asked Questions (FAQs)
Letter sent to all Money Market Participants on 03/27/17
First Quarter Statement Insert
Money Market Reforms
Path Act of 2015 – CITs
Galliard White Paper
Galliard Fund Fact Sheet 4th Quarter 2016