Hey everyone!
I have some questions regarding whether I need to advocate for my defined contribution plan to offer a low-cost index fund as an investment option. As it stands, 7.5% of my pre-tax paycheck is automatically diverted to a "general fund" with no avenues for other allocations.
I've tried to find out more information regarding this general fund and am kind of stuck as to how to move forward. Here's what I know:
-The administrator is Mass Mutual.
-The fund has a return of 2.3%. Have also seen in written documentation that there is 4% return on the fund. Have asked for clarification which it is.
-I've been told there are no fees on the fund. I've asked how Mass Mutual recoups their cost for this fund in that case; awaiting reply
-The fund is a "general fund". Have asked what this means (stocks, bonds, etc.). Received reply that did not answer question directly. Asked again; awaiting reply
-I've asked for a prospectus and have been informed via email there is none (how is this possible?).
-I've heard the term "defined benefit plan" batted about in regard to the fund. However, the County makes no contributions to the fund. Only employees. Thus per the Department of Labor, it is more of a defined contribution plan (?)
http://www.dol.gov/ebsa/publications/wyskapr.html-I have asked the plan administrator with whom I am communicating via email if she is my fiduciary. Am awaiting reply.
-I have asked the plan administrator what plans they have to offer investment options other than the general fund. Have been told that when I become part-time, I will have plenty of options for investment opportunities.
What would be a prudent next step?
There seems to be the HR person at the County (who sent me outdated information regarding the plan when it was still administered by the Hartford) who is involved, along with the Mass Mutual person. Everyone is quite polite and prompt over email. I wish to work at this facility for some time to come. We do not have a union; however, our full-time counterparts have a very strong and active union. There are no part or full-time positions available that would be an option for me. I'm trying to gather together more members of the extra help staff to get some answers (strength in numbers, etc). Plus I hate the idea that if I pursue this on my own that I am "making waves" when really I am chasing down information that should be readily available and is not.
Thanks in advance for your help!
My apologies, as I'd mistakenly typed defined compensation plan rather than defined contribution. These plans are quite confusing .... Thank you for your input on them!