The State wants MaineSaves to be a voluntary retirement plan that every employee can understand and participate in. Starting this May, you’ll see important changes to MaineSaves⎯including new target date funds⎯that will make the plan easier to understand and use. Choosing your investments will be stress-free, and you’ll find it much simpler to understand how much you’re paying in administrative fees.

 

We’re introducing a new lineup of investment funds so that everyone can feel comfortable selecting a mix of investments, even if you’re a beginner and you’re not sure what to do.

To establish the new lineup, we will map (that is, transfer) accounts from their existing investments to the new funds. If you are currently participating in MaineSaves, please read your provider’s announcement to learn how you will be affected.

VALIC Is Now AIG Retirement Services
VALIC has changed its name to AIG Retirement Services. Soon, the new name will start to appear in all plan communications. If VALIC is currently your provider, you may still see the VALIC name on your paychecks until the payroll system is updated.

 

With the new investment fund menu, you can choose your investment options based on how comfortable you are with making investment decisions. This makes it easier for you to find the right choice for your situation, whether you’re a beginner or an investment guru.

What’s Your Comfort Level?
I don’t have the expertise or the time to spend researching investments. I’d rather let the pros do most of the work.

Target Date Funds

I have some experience choosing investments, but I don’t have the time (or the desire) to do in-depth research.

Core Funds

I like to research my own options, and I’m confident I can pick the right investments for myself.

Self-directed account

Target Date Funds Core Funds Self-Directed Account (Brokerage Window)
If you want a simplified, all-in-one approach to investing, target date funds might be a good choice. Each option contains a diversified mix of investments that is adjusted automatically as the fund nears its target retirement date. Core funds include a diverse group of options selected and monitored by the plan’s Advisory Council. If you’re comfortable making your own choices and want to build your own investment portfolio, core funds might be right for you. Consider this option if you are comfortable choosing your own mix of investments and you want the freedom to create a customized retirement portfolio from hundreds of mutual funds. Note: You may have to pay account maintenance or trading fees to use this option.
When it comes to picking investments, one size does NOT fit all. Some employees don’t have the time or expertise to feel comfortable managing their investments and would appreciate more help with their investment decisions. That’s why you’ll see American Funds Target Date Retirement Funds as a new investment option starting in May.

What’s a target date fund? Target date funds pre-mix your investments for you and adjust the mix gradually over time to be more conservative as the fund nears its target retirement date. They’re intended to make investing for retirement simpler and more convenient.

Picking a target date fund is easy. Each fund has a date in its name⎯the fund’s target date. Just choose the fund with the year closest to when you plan to retire. For example, if you were born in 1970 and you want to retire at age 65, you would pick American Funds Target Date Retirement 2035 (Fund #1981).

Learn more. To find out more about the new target date funds, read the brochure, review the Investment Fund Information and watch for the April issue of the MaineSaves Bulletin.

Investment Goals Change as You Near Retirement
What’s on Your Mind?

Why are you mapping me to a target date fund?

When we map funds, we pick the new fund with the investments most closely aligned to your old fund. If there is no directly comparable fund, the government says account balance must be placed in a diversified fund, so that’s why some funds will be mapped to target date funds. However, you can move your account balance to other funds at any time. To make changes to your account, go to your provider’s website and log on to your account.

When you mapped me to a target date fund, you assumed I’m going to retire at age 65. What if I want to retire earlier?

For purposes of mapping to target date funds, we chose a target retirement date that works for most employees, but you should pick the funds that work best for your specific situation. You can pick any fund you want at any time by logging on to your provider’s account. Visit your provider’s website under Providers on the home page. If you want to pick a different target date fund, simply choose the fund with the date that is closest to when you plan to retire.

Investment Goals Change as You Near Retirement
Our new menu of investment fund options is more streamlined than our current lineup, but still broad enough to enable you to build a diversified investment mix. There are three investment fund providers to choose from⎯AIG Retirement Services (formerly known as VALIC), MassMutual, and Voya. All three of these State-approved providers will offer these same core funds, so you’re in good hands no matter which provider you choose.Note: Every investment option (except the Fixed Account) carries the risk that the value of your investment will not increase at the expected rate or will even decrease. Consider reducing the overall risk in your account by choosing a diverse mix of asset classes (investment fund categories). Of course, diversification and asset allocation are strategies to protect against risk, but they cannot ensure a profit or guarantee against loss.
New Core Investment Fund Lineup
Asset Class (Investment Fund Category) Investment Option (Ticker Symbol)
Capital Preservation Fixed Account
Bond PGIM Total Return Bond Fund⎯Class R6 (PTRQX)
Vanguard® Total Bond Market Index Fund Admiral (VBTLX)
U.S. Large Cap Stock Vanguard® Institutional Index Fund⎯Institutional Shares (VINIX)
Harbor Capital Appreciation Fund⎯Institutional Class (HACAX)
MFS® Value Fund⎯Class R6 (MEIKX)
Nueberger Berman Sustainable Equity Fund⎯Class R6 Shares (NRSRX)
U.S. Mid Cap Stock Vanguard® Extended Market Index Fund⎯Institutional Shares (VIEIX)
U.S. Small Cap Stock Neuberger Berman Genesis Fund⎯Class R6 Shares (NRGSX)
Global Stock American Funds New Perspective Fund®⎯Class R-6 Shares (RNPGX)
International Stock Vanguard® Developed Markets Index Fund⎯Admiral™ Shares (VTMGX)

American Funds EuroPacific Growth Fund®⎯Class R-6 (RERGX)
If you want complete freedom to manage your own investments and select from a wider variety of funds, each provider offers a self-directed account (brokrage window). You can use the self-directed account to invest in any fund your provider offers. Contact your local representative to learn more or start participating in this option. Fees apply.

 
 
 
 
 

Starting in May, plan administrative fees will be based on each person’s account balance, instead of varying based on the specific funds he or she is invested in. This will make fees more equitable and easier to understand.

What are plan administrative fees? Plan administrative fees are costs associated with operating the plan and ensuring that it meets legal and tax requirements. This includes costs for processing contributions and distributions, calculating account balances, generating transaction statements, maintaining the plan’s website and operating the call center.

What will I be charged? Each provider will charge an annual administration fee, calculated as a uniform percentage of assets, as shown below.

Provider Annual Administrative Fee
MassMutual 0.24% of assets ($2.40 per $1,000)
AIG Retirement Services (Formerly VALIC) 0.23% of assets ($2.30 per $1,000)
Voya 0.21% of assets ($2.10 per $1,000)

From this table you can see that a participant with $10,000 in the plan will pay $21, $23 or $24 per year in administrative fees, depending on the provider he or she chooses.

Where can I see the charges? The administrative fee will be assessed each quarter and reflected on your account statement. If you are currently participating in MaineSaves, your mid-July account statement will show how your account is affected. Learn more about plan fees here.

For more information about your new options, check out these resources.

Participant Mailings

If you are currently participating in MaineSaves, your provider sent the following announcement to your home in March. Please read the announcement to learn more about how your account will be affected by these changes.

Investment Fund Information

Bone up on your new investment fund options. Review their performance or their fund fact sheets.