Memo to all FMCC Administrative Employees Regarding Your Money
FROM: Christopher M. Kerns, Vice President & Senior General Counsel
DATE: April 2, 2021
SUBJECT: Recent Notice from Wells Fargo; Replacement of Investment Advisor
You may have recently received a Notice from Wells Fargo regarding the “Default Fund”. Wells Fargo states that it mistakenly provided the wrong notification to FMCC employees who have signed up to make 401(k) deferrals into the FMCC 401(k) Retirement Plan (the “FMCC Plan”). The incorrect notification stated that, if you originally did not choose to invest your money (together with the corresponding FMCC “matches”) into investment funds approved and offered by the FMCC Plan, those deposits would be automatically invested (or “defaulted”) into the “Wells Fargo Stable Fund”.
Rather, the FMCC 401(k) Committee previously voted to change the “default” fund, so that if you did not affirmatively choose to invest among the investment funds offered under the FMCC 401(k) Plan, then your 401k deferrals and FMCC matching contributions would be automatically invest in the “Target My Retirement” fund.
Additionally, the FMCC 401(k) Committee recently solicited proposals from alternate companies to potentially replace Wells Fargo as the investment adviser to the FMCC Plan. After receiving detailed proposals, research, and interviews with three top-notch entities in the pension and investment advisory business, we have chosen to replace Wells Fargo.
Our new investment advisor is NFP, and Pollard & Associates will be acting as a Third-Party Administrator. We are convinced that this team will provide more and better services. We will be keeping Principal as our recordkeeper for the FMCC 401(k) Plan.
The FMCC 401(k) Committee will also undertake with our new advisors a close review of the existing FMCC Retirement Plan. It is possible that we will make some updates or modifications in order to benefit FMCC employees. We will be communicating any changes and other information in the near future.
Vice President & Senior General Counsel, Fort Myer Construction Corporation