Citi Benefits Handbook
Investing Your Contributions
Through the Plan's investment options, you have a choice of:
- Target retirement date funds (pre-diversified funds that shift in investment mix, according to your age);
- Index funds;
- Actively managed funds; and/or
- The Citigroup Common Stock Fund.
If you enroll in the Plan, you choose the investment options in which contributions to your accounts will be invested.
That investment election stays in place for all future contributions to those accounts until you make a change. You may make a change to your investment elections by filing a subsequent investment election in the form required by the Plan Administrator.
You may have different investment elections on file for contributions to your Before-Tax Contribution Account and/or Roth Contribution Account.* You may invest your contributions in one or more of the investment options in whole percentages totaling 100%.
* Unless you elect otherwise, your Roth After-Tax Contributions, if any, will be invested in the same manner as your Before-Tax Contribution election.
What Happens if You Do Not Make an Investment Election?
If you are automatically enrolled in the Plan but have not made an investment election, your contributions will be invested in the Plan's Default Investment Alternative, which is the Plan's "target retirement date" fund consistent with your projected year of retirement. For this purpose, your projected year of retirement is the year you will become 65 years of age. If your age is not on file with the Plan, contributions will be invested in the target retirement date fund with a projected retirement date of 2025.
"Target retirement date" funds are a useful option for investors who want a diversified investment portfolio based on their targeted retirement date but who prefer not to make detailed or complicated investment decisions. The manager of a target retirement date fund changes the fund's investment mix gradually over time to reflect the changing risk tolerance normally associated with each stage of an average individual's life. In other words, the fund manager gradually shifts the fund's asset allocation over time to become more conservative as the target retirement year approaches.
BlackRock Fund Advisors (BFA) manages the Plan's target retirement date funds (the "BFA Life Path Funds"). The annual expenses charged by BFA are currently 0.05% (5 basis points) of amounts invested in any of the target retirement date funds. Additional fees may be charged by the Plan for administrative expenses.
Any funds (e.g., settlement proceeds and rollovers) received by the Plan in your name, for which you have not made an investment election, will also be invested in the Plan's Default Investment Alternative, which is the Plan's "target retirement date" fund consistent with your projected year of retirement.
You are not required to stay in the BFA Life Path Funds. You can elect different investment fund options for future contributions and you can transfer all or a portion of your Plan balance to any of the other investment options at any time without financial penalties, subject to any trading restrictions imposed by the individual funds or by the Plan. For more information on these topics, see "Transfers and Reallocations."
For more detailed information on the BFA Life Path Funds (including specific information on the risk and return characteristics) or the other investment alternatives under the Plan, you can review the Lipper fund fact sheets available for each of the Plan's investment alternatives. Contact the Plan's website as instructed under "How to Contact the Plan."
For additional information on fees charged by the Plan and how to transfer your balances in the BFA Life Path Funds, contact the Plan's website as instructed under "How to Contact the Plan." If you do not have Internet access, you can call the Plan to request this information.
Company Fixed Contributions and Company Transition Contributions are invested in the same investment options as your Before-Tax Contributions. If you have no such election on file for your Before-Tax Account (for example, if you are making contributions only to a Roth Contribution Account), any Company Fixed and/or Company Transition Contributions that you may receive will be invested in the Plan's Default Investment Alternative. You may avoid this by making a Before-Tax Contribution investment election or transferring your balances out of the Default Investment Alternative to any other available Plan investment options, subject to the general Plan rules on fund transfers. For more information on these Plan rules, see "Restrictions on Fund Transfers, Reallocations and Rebalancing."
If you are an active employee with no breaks in service and have stopped contributing to the Plan, the investment election you had on file when you stopped contributing will be your investment election when you resume contributing to the Plan. If your investment election is no longer available when you resume contributing, your contributions will automatically be invested in the Plan's Default Investment Alternative until you make a change. Note: This rule does not apply to rehired employees, who will be treated like new hires for this purpose.