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What to Know. Our 401(k) default investment, the Principal Trust Target Funds will be known as the is changing it's name to the Principal Lifetime Hybrid Funds, effective January 1, 2017. Also effective January 1, 2017, Reliant will now step-up all 401(k) participants that were auto-enrolled at $50 a month and who have not made any changes to their auto-enrollment. Each year these auto-enrolled participants will see their 401(k) contribution increased by $10. This increase will remain in effect until either 1) the employee logs on to principal.com and makes a change to their 401(k) election in some way or 2) the maximum step-up amount of $150 is reached. |
Once a year the IRS requires that we remind our staff of all the great features provided to you in Reliant's 401(k) plan. This year we have some exciting news. After careful consideration and discussion with In 2017 we will have 2 changes to our 401(k) Broker, the Reliant 401(k) Investment Committee has decided to change our Plan.
- Our 401(k)
- default investment
- , the Principal Trust Target Funds, will be known as the Principal Lifetime Hybrid Funds, effective January 1, 2017.
- Reliant will now step-up all 401(k) participants that were auto-enrolled at $50 a month and who have not made any changes to their auto-enrollment. Each year these auto-enrolled participants will see their 401(k) contribution increased by $10. This increase will remain in effect until either 1) the employee logs on to principal.com and makes a change to their 401(k) election in some way or 2) the maximum step-up amount of $150 is reached. Ideally the Reliant 401(k) Investment Committee would love to see all 401(k) Participants logging into their account snad reveiwing and making changes based on their preferences at leats on an annual bases. However, we recognize that some people have chosen to stick with the default investment options they were auto-enrolled with by Relaint. To ensure these auto-enrolled participants are actively saving for retirement and taking steps to keepo their saving up with inflation we have institiued this $10 annual increase. 401(k) participants always have the option to login to Principal.com to change this elecetion at any time. The auto-increase in many cases is still less than many employee's 5% match. To learn more about how you can increase your 401(k) contribution and take full advantage of the 5% match benefit see
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These Trust Target funds have lower service fees due to the fact that they are Index funds (we save on fees because the funds don't have to pay investment advisors to actively manage the investment portfolios). The performance of the Target Trust funds has been comparable to the Principal Lifetime Funds. In fact, the Target Trust Funds have slightly outperformed the Principal Lifetime Funds performance average over the last 5 years.
This investment change will affect the 401(k) investment accounts of many Reliant missionaries. With this change, all existing 401(k) account balances that were previously invested in the Principal Lifetime Funds will be moved into to the Principal Trust Target Funds. The Reliant 401(k) Investment Committee believes this change is for the benefit of missionaries, as the new investments have a better 5 year performance track record and they cost less - which will hopefully mean your 401(k) account balances will thrive even more with this change.
In addition, every year we provide you with the Safe Harbor employee notice. This notice highlights the benefits and details of Reliant’s 401(k) Plan. As always, the Reliant Finance dept is available year-round to assist you with any 401(k) questions - email us at 401k@reliant.org or call 407-671-9700 ext 130.
