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Questions Re: Voya Stable Value (Calstrs Pension2)

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Hello, again. Despite my dislike of Pension2's forced liquidation of my long term investments, I didn't manage to switch to another provider, so now my re-allocated funds are with Voya, except for a chunk that stayed in TIAA-Cref's traditional account. My question is about the Voya stable value option--looking over their statements about that fund, I remain unclear about what degree of flexibility one has with that investment. They seem to place more restrictions on moving the money than TIAA-Cref does, but it seems ambiguous what, exactly, the restrictions are. Would someone (Scotty D?) be kind enough to spell out what their policies/restrictions are if one wants to move money out of the stable value fund in order to reinvest in a different fund? If there are restrictions about pulling the money out in retirement, I'd like to be clear on that, too. Thanks.

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whyme, please feel free to give us a call here at Pension2 and we would be happy to address any questions you have on the Stable Value investment option, or anything else regarding our plan.

 

Thanks,

Brian

888-394-2060

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Guest adirondacks

Brian Gould,

 

Based on Tibble v. Edison International, do you agree with my assertion that "any willing provider" law is now null and void?

 

 

Best,

 

Joel L. Frank

Pension Columnist

The Chief-Civil Service Leader

277 Broadway

NYC 10007

732-536-9472

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Joel,

 

I'll answer that, No.

 

Whyme,

 

There are additional restrictions on moving out of the Voya Fixed Plus III, though nothing out of the ordinary. The fixed account is subject to what is called Equity Wash. Essentially, you cannot move the money to a "similar" investment option without first moving it to a "dis-similar" one first. This is to prevent interest rate arbitrage and to protect participants that choose to stay in the option. If you are eligible for a distribution, money can be taken out without restriction (for example, a rollover at age 59 1/2), but equity wash does apply for Exchanges out. Basically, you can't move the money at will to the money market or short-term bond fund in the plan without first transferring it to another investment option for 90 days (the Vanguard Total Bond Market Index was added as an option for this very purpose). The old general account option did not have an equity wash feature - which was actually an exception in the industry as most general/stable value accounts do. There is a fact sheet available on this and I'd encourage you to read it or give Brian a call.

 

Scott

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Guest adirondacks

Hi Scott,

 

We all know you have a very busy Financial Planning Practice, however, when you have sufficient time would you please elaborate on your one word answer?

 

Joel

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