Page 27 - Public Employees Retirement Fund My Choice Plan Member Handbook for Local Government Employees

Investment Options
time, you may elect to move your contributions (DC and/or RSA) into another Target Date Fund or any of the other available investment offerings.
If you are currently invested in the Retirement Fund but, based on your age, you should be in one of the new Target Date Funds (2015 or 2065), your Retirement Fund balances (DC and/or RSA) will be moved into the appropriate Target Date Fund year, as applicable.
5.2.2 Defined Contribution and Rollover Pre-Tax Contribution Fund Allocation Changes
As outlined in this handbook, you can change the amount of your DC and Rollover Pre-Tax Contribution funds you invest in each investment fund. The amount must be at least 1 percent of your total balance and can be changed daily.
It is important to ask yourself these questions.
1. What is my risk tolerance? This means how comfortable you are with the account value rising and falling with the markets.
2. What is my age? If you are younger you may be able to take on more market risk since stock losses can be made up over time. If you are older you may want to invest in more stable value investments that provide regular income.
3. What is my portfolio diversification? This means spreading your money among different types of investments to reduce overall risk.
There could be other factors to consider. Consult your financial advisor.
5.3 Suspension of Membership 5.3.1 Staying Invested
When you leave covered employment, you may leave your DC and Rollover Pre-Tax Contribution funds invested with PERF and may continue to invest in any of the available options. You will continue to receive a quarterly statement. You are considered inactive if you are no longer working in a PERF My Choice Plan- covered position.
If you have been inactive for 5 years your account will be suspended. The implementation of the 5-year suspension began on July 1, 2016, for all DC and/or Rollover Pre-Tax Contribution funds inactive for 5 years or more on that date going forward. Inactive means no wages and contributions have been reported for a 5-year period.
If your account has less than $1,000 invested, the funds may be disbursed to you.
If your account has $1,000 or more invested, you retain access to your account and the ability to direct investments. Your suspended account will remain invested per your investment elections and will be charged an administrative fee.
Public Employees Retirement Fund My Choice Plan Page 27 of 50 Member Handbook for Local Government Employees
Effective: 07/01/2020
NOTE: If you do not choose your DC investment option(s), your DC will default to a Target Date Fund based your projected date of retirement.