Under PERS Plan 3 you may choose between two separate investment programs. They are the WSIB Investment Program and the Self-Directed Investment Program.
The WSIB Investment Program enables you to invest in the Total Allocation Portfolio (TAP), a portfolio with an asset allocation that is determined, managed and continuously rebalanced by the WSIB. If you do not select an investment program, your contributions will automatically be directed to this program.
The Self-Directed Investment Program enables you to design your own investment portfolio from a menu of funds, or to choose one of three pre-set portfolios, called Horizon Funds. These pre-set portfolios are balanced funds with asset allocations that target different risk levels and investment time horizons.
If you choose the Self-Directed Investment Program, you must contact the record keeper and establish your investment allocation. Use the automated phone line, Internet, or speak with a customer service representative to choose which self-directed fund(s) you want your contributions invested in. If you select the Self-Directed Investment Program and do not set up an allocation, your contributions will be invested in the Money Market Fund.
You can learn more about the WSIB and Self-Directed Investment Program by obtaining a copy of the Plan 3 Investment Guide from your employer or the record keeper.
When you become a member of PERS Plan 3, you use the Member Information Form to select your investment program. You can contribute to only one of the two investment programs at a time. If you wish to change your investment program, complete a Plan 3 Change of Investment Program Form and return it to your employer. Both of these forms are available on this Web site or through your employer.
Though you can contribute to only one of the two investment programs at a time, you may have investments in both programs. If you wish to move all or a portion of the balance of your investment account between investment programs, contact the record keeper.
There is no benefit formula used to calculate the value of your defined contributions. The value of your account will be based entirely on the amount you contribute and the performance of the investments. As in any investment, there is an element of risk.
The WSIB values the TAP once each month. Since the WSIB Investment Program is composed of a variety of investment vehicles, its value is measured by the composite worth of the fund’s entire portfolio as determined by the current market value of each investment. Your contributions are converted to shares in the fund. The cost of a share is based on the composite value of the fund at the time the share is purchased. Share values increase or decrease at the same rate as the TAP.
Within the Self-Directed Investment Program, member portfolios are valued daily. There are a variety of investments available through the Self-Directed Investment Program. Each investment is valued separately based on its current selling price in the market.
Your employer transmits your contributions and member data to DRS at a minimum on a monthly basis. Under state law, employers are required to provide DRS with member contributions and data by the 15th of the month following the month in which the contributions were deducted from your paycheck.
Both investment programs incorporate a Short-Term Investment Fund (STIF) where contributions are placed and begin earning interest. When individual member contributions (reported by an employer) are reconciled with the cash DRS receives from the employer, the process of moving your contributions into your investment program begins.
Depending on your employer’s reporting schedule and your choice of investment program, there will be some variation in the time it takes for contributions to move between the STIF and your investment allocation. For more information about how your investments are processed, refer to your Plan 3 Investment Guide. Separate quarterly statements are issued for each investment programWSIB Investment Program account statements are issued 45 days after the end of the quarter. Self-Directed Investment Program account statements are issued 10 business days after the end of the quarter.