Changes coming to the lineup of Plan 3, DCP Retirement Strategy Funds

Posted 03-Dec-2019

A new Retirement Strategy Fund (RSF) is coming to the lineup of investment options in Plan 3 and the Deferred Compensation Program (DCP).

The most recent addition – the 2065 Retirement Strategy Fund – will be available beginning Jan. 2, 2020. The newest fund is designed for those born in 1998 or later.

Meanwhile, the oldest target date fund in the lineup will be “retired” at the end of this year. The 2005 Retirement Strategy Fund will close Dec. 31 and investor accounts in that fund will transfer to the Retirement Maturity Strategy Fund.

The Department of Retirement Systems offers a series of Retirement Strategy Funds in Plan 3 and DCP, spaced in five-year increments. Also known as target date funds, the RSFs offer a one-step investing approach with an asset mix that automatically adjusts over time as you move toward a target date for retirement or withdrawal of funds.

A new fund is added every five years to serve younger members entering the workforce. At the same time, the oldest target date fund is closed as it reaches its final target asset allocation. Investor accounts in the closed fund are transferred to the Retirement Maturity Strategy Fund, which is designed for investors who have been retired for 15 years or more.

The Retirement Strategy Funds are provided by the Washington State Investment Board (WSIB), with asset design and implementation managed by AllianceBernstein L.P. under contract to the WSIB. RSFs are available to DCP participants and to Plan 3 members of PERS, SERS and TRS.

No action is required from participants as the Retirement Strategy Fund lineup is updated. As these changes occur, however, it’s a good opportunity to evaluate your circumstances and make sure you’re investing in the fund that will best align with your personal financial goals. Additional information about investment funds is available in the Plan 3 and DCP sections under Investments.

If you decide to update your investments, you can make changes through your online account by logging in at drs.wa.gov/login. You can also contact the Plan 3/DCP record keeper at 888-327-5596 for assistance.


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