Citi Benefits Handbook
Automatic Rebalancing
You may elect to have your Plan accounts rebalanced automatically. An election to rebalance means that the investment of your accounts will be adjusted on a periodic basis to match percentages you have elected. For example, if you have elected to rebalance your account on a quarterly basis so that 50% is invested in the BlackRock S&P 500 Fund and 50% is invested in the BlackRock Cash Fund: Treasury, at the end of each calendar quarter, regardless of their current balances, your accounts will be reallocated so that 50% is invested in each such fund.
If you elect automatic rebalancing, your Plan accounts will be rebalanced according to the investment election you have on file for your Before-Tax Contributions. See "What Happens if You Do Not Make an Investment Election?" to learn more. If you want a different allocation for your automatic rebalancing, you must change your investment election for future Before-Tax Contributions to match your choices for rebalancing. In the above example, your investment elections for future contributions would have to be 50% in the BlackRock S&P 500 Fund and 50% in the BlackRock Cash Fund: Treasury.
Important Facts about Automatic Rebalancing
You may choose annual, semiannual, or quarterly rebalancing.
If you have an automatic rebalancing election on file and subsequently initiate a reallocation, your automatic rebalancing election may be canceled, unless you re-elect the function.
In order to process a fund transfer, you must cancel any pending auto-rebalancing election on file.
If you request a rebalance fewer than seven days from the end of the quarter and had previously elected a reallocation within seven days from the end of the calendar quarter, your account will be rebalanced starting with the following quarter. Similar rules apply at the end of each annual and semiannual rebalancing period.
If you are not contributing to the Plan, but you have a balance in the Plan and want your Plan accounts automatically rebalanced, the rebalancing will be based on the investment elections you may have on file for future contributions.
Rebalancing is implemented on a pro-rata basis across all your accounts.
The Plan's closed funds are excluded from automatic rebalancing transactions.